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Expanding a Business in Germany

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Expanding a Business in Germany

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Why Expand to Germany?

The real question here is why not? Germany is sat in the heart of Europe and is only an hours flight from the UK. Germany is one of the heavy weights in business. Its the UK number one export market and number two world wide. It has annual sales of more than 2 trillion Euros in goods and services. In 2008 UK exports of goods to Germany totalled £25 billion, while services totalled £10.3 billion. Surely these numbers alone are enough to make Germany a very attractive place to expand to.

Whats the Attraction for UK businesses?

With fantastic transport links and a strong economy it seems only right to consider Germany. With the largest population, market and economy in the EU, it knows its strengths and how to play to them. There are tens of thousands of small and medium sized businesses in Germany employing nearly 70% of the workforce and there is plenty of room for more. There are few restrictions regarding starting up in Germany however the country is well regulated and it is advised to research everything first. Also if your German still needs brushing up on do not fear, Germany is considered to be one of the best speakers of English but you will certainly be furthering your business chances if German becomes apart of your everyday tongue.

Business Opportunities

Germany has a plethora of opportunities and growth sectors and below is listed just a few of the main ones:

  • Machinery the machinery sector is an important part of the engineering sector.
  • Chemicals Chemicals are found in many products and with the new emphasis on saving the planet, chemicals are going eco-friendly.
  • Vehicles Germans are well known for their car industry and although it has slowed down during the recent economic downturn, this is still potential.
  • Metals metal manufacturing and processing has been a long tradition in Germany and although one of the largest manufacturers and users there is a virtue absence of the raw material in the country. The main metal producing and processing industries in Germany are the iron and steel, non-ferrous metal, and foundry industries and are used for all manner of things such as motor vehicles, machinery, building construction, energy technology, ship building, railroad building, the aerospace industry, medical equipment, and information/communication technology.
  • Foodstuff although naturally we dont connect Germany with fine cuisine the food and drink market is booming and there is room for expansion.
  • Consumer electronics these are the electronic equipment that are used in everyday life such as personal computers, MP3 players, audio equipment, DVDs, digital cameras and television; basically anything that falls under the heading of entertainment, communications and office.
  • Textiles Fabrics and textiles are needed around the world.
  • Beer we all know the Germans are famous for it and how much they love it. Why not join in with the locals on this one.
  • Healthcare Developments in medical and healthcare has made it a big business.
  • Aerospace Engineering - Aerospace engineering is the branch of engineering behind the design, construction and science of aircraft and spacecraft.
  • Creative industries - Creative industries typically include industries that focus on: creating and exploiting intellectual property products such as music, books, film and games; or providing business-to-business creative services including advertising, public relations and direct marketing. Economic activities focussed on designing, making and selling objects or works of art such as jewellery, haute couture, books of poetry and other creative writing, and fine art are often included in the sector because the value of such objects derives from a high degree of aesthetic originality.
  • IT is the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware. IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information. Its big business and shows no sign of slowing down.
  • Environment with countries all over the world looking to become eco friendly companies are starting to make big bucks from the environment industry, whether renewable energy, waste products or searching for ways to meet new regulations within the environmental sector.
  • Transport and Construction transport and the construction of can be divided into three sections, infrastructure, vehicles and operations and refers to the movement of the people and goods.

Main cities in Germany which may be considered for possible area to expand to are:

  • Berlin
  • Hamburg
  • Munich
  • Cologne
  • Frankfurt
  • Essen
  • Dortmund
  • Stutgart
  • Dusseldorf

Challenges Foreign Companies Face

Although across Germany, there is no lack of qualified, talented staff, there is however a shortage of IT and computer consultants throughout the country, and a scarcity of trained technical staff around southern Germany. In eastern Germany, where restructuring is still taking place, there is also high unemployment. Retraining programmes guarantee a wealth of skilled and semi-skilled employees to draw from. There are very few restrictions on which companies or services may do business in Germany. However, the country is well regulated, and it is recommended that you investigate before proceeding with an investment. An important thing to remember is research and planning your target market and area. This is key to the success of your business.

Click here to Ask an Expert about Expanding a Business in Germany

Organisations that can assist with Entering the Market

  • > PEO Worldwide Limited

    PEO Worldwide is an international PEO offering employer of record, payroll, employee benefits management, HR and compliance services throughout the world.

    More Details Visit Website
  • > BASCH Consult

    We assist foreign small and medium-sized businesses to establish and develop a presence in Germany

    More Details Visit Website
  • > Company formation services.

    Need to register a company or setting up a company?

    More Details Visit Website
  • > Business Consultancy Services.

    Do you need advice from an expert in your field, on the ground? Need help finding the best route to market for your product or service?

    More Details Visit Website
  • > City of Düsseldorf Office of Economic Development

    WELCOME TO DÜSSELDORF! Germany´s Top Location for Business and Foreign Investment

    More Details Visit Website
  • > Blue Marble Global Payroll

    Simplified Global Payroll Companies with global employees often find that managing payroll in multiple countries is complicated - different systems, laws, and languages in each country, lack of reporting, and constantly changing laws and regulations each year. Trying to manage global payroll via fax and email with excel spreadsheets leads to data security issues, fines, and penalties for non-compliance. Blue Marble has solved global payroll challenges with cloud-based technology, aggregated reporting, and a hybrid service model in 135+ countries around the world.

    More Details Visit Website
  • > Instant Offices

    Finding office space abroad poses one of the most difficult changes that many start-ups face. Location, costs, and transport all need to be considered. And, more crucially of all, what office will allow a new business to attract and retain the best staff?

    More Details Visit Website
  • > Konzept ist König

    Setting up a Subsidiary in Germany

    More Details Visit Website
  • > FrankfurtRheinMain GmbH International Marketing of the Region,

    FrankfurtRheinMain GmbH International Marketing of the Region is the inward investment agency of the greater Frankfurt region.

    More Details Visit Website

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