US business prefers East Europe to Germany

8th March 2005, Comments 0 comments

10 March 2005, BERLIN - Big US companies prefer to set up factories in Poland, the Czech Republic or Slovakia, rather than in Germany, according to a survey of 70 such firms that are active in Germany. Most said that labour costs were lower to the east and there was less red tape to deal with. Fred Irwin, president of the American Chamber of Commerce in Germany which co-sponsored the study, said the former communist nations had a can-do, optimistic attitude. "We had that in Germany too in the 1950s and 196

10 March 2005

BERLIN - Big US companies prefer to set up factories in Poland, the Czech Republic or Slovakia, rather than in Germany, according to a survey of 70 such firms that are active in Germany.

Most said that labour costs were lower to the east and there was less red tape to deal with. Fred Irwin, president of the American Chamber of Commerce in Germany which co-sponsored the study, said the former communist nations had a can-do, optimistic attitude.

"We had that in Germany too in the 1950s and 1960s," he said. "But we've lost it."

The study, conducted with Boston Consulting Group (BCG), found 29 percent of surveyed US companies planned to reduce employment this year at their German units.

The 70 companies surveyed have a total annual German turnover of more than EUR 100 billion and employ 230,000 people on German soil.

The companies said Germany was the ideal location for sales, marketing and research and development operations while Britain was the ideal location of European administrative headquarters.

BCG's chief executive for Germany, Dieter Heuskel, said US companies were generally satisfied with their German presences, with 58 percent of the companies able to increase sales last year.

DPA

Subject: German news 

 

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