german-american trade, investment, and jobs

U.S. COMPANIES ARE IMPORTANT
EMPLOYERS IN GERMANY
ABOUT RGIT
On the other hand there are numerous American
companies that have been investing in Germany and
contribute significantly to the German labor market. U.S.
majority owned affiliates in Germany accounted for about
632,000 jobs in 2012. At the same time they invested
approx. $8 billion in research and development.
GERMANY IS THE 5TH LARGEST EXPORT
MARKET FOR THE UNITED STATES
Germany was the 5th largest export market for the
United States in 2013 with exports totaling 47.4 billion.
Machinery and transportation equipment accounted for
the most exports ($22.9 billion) before chemicals and
related products ($7.2 billion).
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Representative of German Industry and Trade
1776 I Street, NW, Suite 1000, Washington, DC 20006
(202) 659-4777 | [email protected]
www.rgit-usa.com
ABOUT GTAI
U.S. Commodities Exports by Country, 2012
Rank Country
The Representative of German Industry and Trade
(RGIT) is the Washington, DC liaison office of the
Federation of German Industries (BDI) and the
Association of German Chambers of Industry and
Commerce (DIHK). RGIT’s mission is to foster free
trade and a welcoming business environment on
both sides of the Atlantic to achieve sustainable
growth, jobs and innovation for companies involved
in German-American economic relations.
GERMAN-AMERICAN TRADE,
INVESTMENT, AND JOBS
Export
Share
Change 2013/12
Global: $1,579.6 B
Canada
$301.6 B
Mexico
$226.1 B
China
$121.7 B
Japan
$65.2 B
Germany
$47.4 B
100%
19.1%
14.3%
7.7%
4.1%
3.0%
2.2%
3.1%
4.7%
10.2%
-6.8%
–2.9%
Germany Trade & Invest (GTAI) is the foreign trade
and inward investment agency of the Federal
Republic of Germany. The organization advises
foreign companies looking to expand their business
activities in the German market. It provides
information on foreign trade to German companies
that seek to enter into foreign markets.
Germany Trade and Invest
Source: U.S. Department of Commerce
1776 I Street, NW, Suite 1000, Washington, DC 20006
For Germany, the United States was the second largest
exports destination after France. With shipments
totaling $114.3 billion, German exports grew by 4.7%
compared to the year before. About 60% of U.S. imports
from Germany ($66.9 billion) were machinery and
transport equipment.
U.S. Commodities Imports by Country, 2013
Rank Country
1
2
3
4
5
Import
Share
Global: $2,268.3 B
China
$440.4 B
Canada
$332.6 B
Mexico
$280.5 B
Japan
$138.6 B
Germany
$114.3 B
100%
19.4%
14.7%
12.4%
6.1%
5.0%
Source: U.S. Department of Commerce
Change 2013/12
-0.4%
3.5%
2.6%
1.1%
-5.4%
4.7%
(202) 629-5710 | [email protected]
www.gtai.de
SOURCES
U.S. Department of Commerce (2013) - International Trade
Administration, U.S. Census Bureau, Bureau of Economic
Analysis. All information provided by RGIT and GTAI has
been put together with utmost care. However we assume
no liability for the accuracy of the information provided.
© 2015 – RGIT, GTAI
German Investment in the U.S. at $208 B
620,000 Jobs provided by German Firms
Germany is 5th largest U.S. Export Market
GERMANY IS A SIGNIFICANT
INVESTOR IN THE UNITED STATES
U.S. INVESTMENT AT
$118 BILLION IN GERMANY
Foreign investors from Germany – the largest European
economy – have long maintained a strong presence in the
United States. German investment is highly sought after
by state and local governments across the United States
as it is associated with efficient technologies, a high
degree of value added, and well-paid jobs. About 3,500
German majority-owned business operations are present
in the U.S. As a whole, more than 4,700 companies in the
U.S. benefited from German direct investment in 2013.
The largest share of German capital went to U.S. affiliates
of small and medium-sized enterprises.
Germany – the largest consumer market in the European
Union with a population of 81 million – is an attractive
location for American businesses as well. U.S. direct
investment in Germany totaled $118 billion as of year-end
2013, making Germany the 12th largest destination of
U.S. direct investment abroad and the U.S. the largest nonEuropean investor in Germany. The most significant U.S.
investments are found in the manufacturing sector as well
as in holding companies, finance and insurance.
Investment by German business in the U.S. market
reached about $209 billion as of year-end 2013;
comprising 8% of foreign-headquartered businesses who
have invested in the U.S. economy. As such, Germany is
the 7th largest foreign investor in the U.S. In comparison,
China has invested just $13.9 billion (including Hong
Kong) in the U.S. market. German investment focuses
largely on manufacturing (around 36% in 2013), retail
and wholesale as well as finance and insurance.
Almost half of the jobs created by German affiliates
are in manufacturing. Among foreign affiliates in the
U.S., German companies provide the 2nd highest
number of jobs in this sector. German businesses
therefore play a key role in U.S. efforts to strengthen
their industrial base.
Employees in German
Majority-Owned U.S. Affiliates, 2012
U.S. Direct Investment Position
Abroad by Country as of Year-End 2013*
Rank
1
2
3
4
12
Country
Investment
Netherlands
United Kingdom
Luxembourg
Canada
Germany
Total: $4,661 B
$723 B
$571 B
$416 B
$368 B
$118 B
*historical cost basis (book value) | Source: U.S. Department of Commerce
Retail +
Wholesale
109,100
17.6%
Rank
1
2
3
4
7
Country
Investment
United Kingdom
Japan
Netherlands
Canada
Germany
Total: $2,764 B
$519 B
$342 B
$274 B
$238 B
$209 B
78,100
12.6%
11.9%
35.1%
Other
217,800
Foreign Direct Investment Position in the
United States by Country as of Year-End 2013*
Mechanical
Engineering
Chemical
11.5%
11.3%
Manufacturing
47.3%
73,700
293,300
Other
Areas
71,600
Transport +
Automotive
69,900
GERMAN AFFILIATES
SUPPORT ABOUT 620,000 JOBS
Source:
U.S. Department of Commerce
German companies employ over 620,000 workers, which
is 3rd after British and Japanese affiliates in the United
States. German businesses account for almost 11% of the
5.8 million insourced jobs in the U.S. in 2012.
Important investment centers of German business
are California and Texas. German companies also
employed more than 25,000 people in Pennsylvania,
Illinois, New York State, Ohio, Michigan and North
Carolina respectively.
Insourced Jobs by Foreign Affiliates, 2012
Employees in German
Majority-Owned U.S. Affiliates, 2012
*historical cost basis (book value) | Source: U.S. Department of Commerce
962,900
1 United Kingdom
2 Japan
3 Germany
4 Canada
5 France
718,900
620,200
555,600
534,400
Source: U.S. Department of Commerce
61,100
1 California
2 Texas
39,300
3 Pennsylvania
38,000
4 Illinois
5 New York
37,100
32,400
Source: U.S. Department of Commerce