German Firms in the U.S. Confident in 2012

Despite Political and Economic Uncertainties, Companies Continue to Innovate, Grow, and Hire -

67% Plan to Create New Jobs in 2012, Skills Shortages an Obstacle for 60%

German companies in the United States are optimistic despite political and economic uncertainties on both sides of the Atlantic. Sales volumes further improved for 72% of firms in 2011, with the result that 86% expect “moderate” to “strong” growth for their operations in 2012. As they continue to focus on growth-oriented measures like product innovation and entering new customer segments, 67% of companies plan to create new jobs. The majority of the surveyed subsidiaries state that neither EU nor U.S. debt crises discussions have impacted their business decisions in 2011 or plans for 2012 thus far. Rising commodity prices and skills shortages on the U.S. labor market, however, do create challenges for most firms.

These key findings come from the German American Business Outlook 2011, an annual survey monitoring the state of German-owned subsidiaries in the United States. 1,900 firms were approached and approximately 10% of senior management, mostly from the German Mittelstand (small to medium sized companies), responded.