German Companies in the U.S.: A Surge of Economic Optimism and Investment in 2024

NEW YORK, February 8, 2024 (Newswire.com) - The German American Chambers of Commerce (AHK USA) today revealed the 2024 German American Business Outlook (GABO), offering insights into the future of transatlantic economic collaboration. The report compiles responses from 224 German subsidiaries in the U.S., reflecting their optimism and plans for expansion.

Key Highlights:

• 99.5% of German companies in the U.S. do not foresee a U.S. recession in 2024.
• 91% predict net sales growth; 75% expect investment growth in 2024.
• By 2026, 96% plan to invest in the U.S., with over 40% investing more than $5 million and 30% over $10 million.
• 72% aim to expand their workforce in 2024, though 91% face recruitment challenges. By 2028, 82% expect workforce growth.
• Concerns about U.S. inflation, market uncertainty, supply chain issues, and trade tensions have lessened ahead of the 2024 U.S. election.

Jan Heck, Chairman of the German American Chambers of Commerce, expressed excitement over the growth and resilience of German subsidiaries in the U.S., highlighting the strong transatlantic relationship.

Investment and Importance of the U.S. Market:

• For over two-thirds of the German companies, the U.S. plays a significant or dominant role in their global business.
• 40% have U.S. manufacturing facilities, and 12% plan to build one within three years.
•  19% plan to build their first in the next three years

Workforce Development and Future Shoring:

• German companies are focusing on expanding their workforce and investing in training and apprenticeships.
• 45% are investing in personnel development programs.
• Investments are also directed towards automation, new office spaces, and digital transformation.
• Sustainable investments increased by 10% compared to 2023.

Challenges and 2024 U.S. Elections:

• The main challenge is recruiting skilled employees, with 57% of companies facing difficulties.
• 31% advocate for changes in U.S. immigration policies, and 27% seek more support for apprenticeships.
• Concerns have shifted from inflation and supply chain issues to potential political uncertainty in the election year.
• Top priorities for German companies include controlling inflation, lowering interest rates, reducing taxes, and cutting bureaucracy.

The 2024 GABO depicts a dynamic and innovative German business community in the U.S., ready for growth and advancement. These companies demonstrate resilience and adaptability amid global challenges, committed to investing in workforce development, technological progress, and sustainable practices. Their strategies balance optimism with strategic agility, underpinning the strong German-American economic partnership.

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Source: German American Chambers of Commerce