• Investment: 84% of German subsidiaries in the US plan to increase their investments over the next 3 years. 27% without a production facility plan to build one in the next 3 years, excluding professional services and logistics
• Workforce: 88% plan to grow their US workforce by 2029
• Global impact: 74% of companies report US revenue and 72% report profits as significant/dominant in their global company results
• Tariffs: 81% expect impacts from potential tariffs to affect their US business
ORLANDO, Fla., February 28, 2025 (Ecnetnews.com)
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The German American Chambers of Commerce (GACCs) published the 2025 German American Business Outlook (GABO) results, with 207 respondents, at the German American Executive Summit.
Strength of German Companies in the US Drives Investment & Optimism
German companies expect a strong US market in 2025, with 95% predicting economic growth. Of these, 37% predict strong/very strong growth – significantly more positive than 2024.
This positivity extends to German investment, where 84% of respondents plan to invest in the US over the next 3 years. Of those, 43% plan to invest more than $5 million. 27% of German subsidiaries without a production facility plan to build one in the next 3 years (excluding professional services and logistics firms). The main reasons for this ongoing investment are US market size & customer demand and proximity to customer base.
Growth requires making workforce a priority: 88% of surveyed German subsidiaries plan to grow their US workforce by 2029. In 2025, 32% predict strong or very strong growth of their US workforce, up from 22% in 2024.
First Signs of Divergence
Noticeably, fewer companies report staffing, manufacturing and R&D growth at their German headquarters coupled to their US growth; despite +2.1% export growth* in 2024 from Germany to the US. In 2024, 40% of companies cited US growth as a driver of production expansion in their German operations, now down to 28%. Similar data holds true for both German employment/R&D activity.
Despite this, 3/4 of German companies report their US revenues and profits as significant/dominant in their global company results, an increase from 2024.
As one respondent summarized, “‘Local for local’ will be the driving engine within the US market this year.”
* Federal Statistical Office of Germany, 2024
The US and Germany Face Similar Challenges, with Differing Local Concerns
Leading concerns for both countries are political uncertainty and inflation/cost increases. These challenges do not stop German companies from investing in the US, but companies would like the new administrations in both countries to prioritize reducing inflation. In contrast, 81% of respondents expect potential tariffs to affect their business. In addition, 93% report challenges finding skilled workforce. Visa & immigration and trade tensions are top concerns for their US operations.
For more information, please contact:
Anne-Katrin Huber
Director Marketing, Membership & Events
German American Chamber of Commerce® of the Midwest Inc.
huber@gaccmidwest.org
https://www.ahk-usa.net
Source: German American Chambers of Commerce®
