Successfully investing in the USA

Although some of the trade and tariff barriers introduced by the previous administration still exist, many other obstacles have dissipated. For example, restrictions on the granting of entry or work permits are essentially no longer experienced and/or have been relaxed in most cases.

Due to the various measures to strengthen local production, a market entry in the US oftentimes results in higher investments, since a pure place of business in the US will no longer be sufficient in individual sectors. However, this can also lead to additional opportunities due to the financing power of German industry.

Furthermore, the search for not only qualified specialist and managerial staff, but also for qualified production staff, represents a major challenge for employers. This development will not change in the foreseeable future.

In consideration of the current US market environment and based on the government's known stimulation pro­jects, a continuation of the positive economic development is expected. Domestic demand, which has been very consistent over the years, along with industrial investment activities, indicate a favorable economic deve­lop­ment.

The massive economic stimulus programs will lead to an onshoring of supply chains. Furthermore, if they are designed competitively, they will result in significant potential for our German clients. The utilization of these options in the US domestic market can only be realized through market access with a local presence.

Due to the current inflation, there is no expectation for change in the taxation of companies. However, the US tax authorities will certainly increase their efforts to collect appropriate federal and state taxes from companies that do not have a local presence in the US working with trading partners in the country.

Experience demonstrates that German companies have been able to develop a solid standing in the market due to sustainable strategies within their US investments. As the largest and most secure economy, the US, and its long-term economic conditions, including diversification, innovation, and growth opportunities, remain attrac­tive to German companies aspiring to break into the US market. In consideration of past experiences, the con­tinuation of restriction on free trade, and current initiatives, engagement in the US requires constant moni­tor­ing. Nevertheless, the odds are clearly in favor of a successful engagement within the US economy.