STRONG PARTNERS
Even in politically turbulent times, North Rhine-Westphalia maintains strong ties with the USA. Diplomatic relations and economic cooperation between the two countries are at the heart of this relationship.
Tobias Ludewigt is Country Manager in Germany at Boston Scientific. The company has invested in the Institute for Advancing Science in Düsseldorf, a modern training hub where national and international medical professionals are trained.
These good relations can be conveyed in figures: over 1,700 US companies operate in North Rhine-Westphalia, and there are 33 city, 98 school and 290 university partnerships. The Düsseldorf Chamber of Industry and Commerce district alone is home to 412 US companies, including well-known global players such as 3M, the developer of Post-it notes; Cargill, a supplier of food and industrial products; the KFC German branch; the pharmaceutical company Johnson & Johnson; the TV shopping channel QVC; Dynavax, a biotechnology company; the logistics service provider UPS; and Rockwell Automation, a manufacturer of automation and information solutions. Another US company with German headquarters in Düsseldorf is Boston Scientific. As a leading global provider of medical technology, the company employs around 600 people in Germany. 'Boston Scientific has been present in Germany for 25 years and has had a location in Düsseldorf since March 2022, at the Smart Office in Düsseldorf Airport City,' says Tobias Ludewigt, Country Manager for Germany. Why did the company decide to locate in the state capital? ‘Thanks to its proximity to the airport, the office is easily accessible for both our team and our customers. As one of the most important markets in Europe, Boston Scientific has also invested in the Institute for Advancing Science (IAS) in Düsseldorf, a modern training and education centre where national and international medical professionals are prepared and trained in the safe use of our products and the associated therapies,' explains Tobias Ludewigt. The company is responding to the shortage of skilled workers and demographic change, which is leading to an increase in the number of patients in Germany due to higher life expectancy, by establishing a modern training hub for doctors and medical staff from numerous disciplines.
The US Consulate General is also based in Düsseldorf and plays an important role in facilitating bilateral dialogue with the state of North Rhine-Westphalia. Preeti V. Shah took office as the new Consul General in the state capital in August 2024. German-American relations are shaped by numerous exchange programmes, and relations between the US and Germany are good at the local level. These are supported by the work of the Foreign Commercial Service (FCS), which is based at the US Consulate General in Düsseldorf and represents the commercial interests of the United States abroad. This includes helping American companies enter or expand in the German market and assisting German companies in finding American business partners and investment opportunities in the US. To this end, the FCS collaborates closely with various partners, including the Chamber of Industry and Commerce (IHK).
Andreas Schmitz, President of the Düsseldorf Chamber of Industry and Commerce, values the good relations with the US Consulate General in Düsseldorf and considers it indispensable in North Rhine-Westphalia.
Andreas Schmitz, President of the Düsseldorf Chamber of Industry and Commerce, considers cooperation with the US Consulate General to be highly positive. ‘The Consul General is committed to bilateral exchange on many levels. For us, a US Consulate General in North Rhine-Westphalia is indispensable,” he explains. However, the Chamber of Industry and Commerce is also dedicated to fostering strong connections between the regional economy and international companies. ‘The USA is the most important market outside the EU for our member companies. That is why the Chamber offers its members knowledge, networking opportunities, and advice on economic issues relating to the US market,' says Mr Schmitz. One advantage here is the close cooperation with the German Chambers of Commerce Abroad (AHKs) in the USA. Many US companies have been operating in Düsseldorf for a long time, providing training, participating in IHK committees and working groups, and actively shaping the local economy. The IHK is part of a strong network consisting of the US Consulate General's Commercial Service, Düsseldorf Economic Development, NRW.Global Business and NRW.Bank. So, why do so many US companies choose Düsseldorf and the surrounding region as their headquarters?
Preeti V. Shah is the new US Consul General in Düsseldorf. She has been in the US diplomatic service since 2004 and was previously stationed in Afghanistan, among other places.
'The deciding factors in choosing this location are the easy accessibility of high-purchasing-power markets in North Rhine-Westphalia, Germany, and neighbouring European countries. Added to this is a dense transport infrastructure with room for improvement, proximity to strong universities and research institutions, an attractive labour market, and the availability of skilled workers,' says Andreas Schmitz. In addition, Düsseldorf consistently ranks highly in city rankings, making the city attractive to many expats. This is despite the fact that connections between the US and Düsseldorf have been limited since the start of the pandemic, with all direct flights still suspended – a problem that is apparently being addressed. ‘Discussions are underway with various airlines to offer these flights again in future,’ he explains. ‘The USA is one of the most important markets for our companies operating abroad. However, it is crucial that it remains the most important investment location worldwide for the North Rhine-Westphalia economy.’
Nevertheless, the change of government in Washington is being felt. 'One thing in particular has become noticeable: the significant increase in uncertainty in transatlantic trade. This is also reflected in the forecast growth rates,’ says Andreas Schmitz. Nevertheless, business continues, and not badly at all. Many companies in this country benefit from long-standing customer relationships that remain intact even in turbulent times. What's more, their products are often so specialised that they cannot simply be replaced by other suppliers, especially since the competition is also struggling with rising tariffs. US customs policy is increasingly characterised by protectionism and short-term political decisions. ‘For companies, this means higher costs, uncertainty in planning and growing bureaucratic effort.’ Therefore, three things are particularly important: diversifying supply chains; making targeted use of trade agreements; and actively managing risks. ‘Many companies are currently analysing which strategies and scenarios are right for them, such as whether it makes sense to locate production and investments directly in the US.’ At the same time, Andreas Schmitz observes that many companies are opening their eyes to new markets and free trade agreements, as is currently the case with Indonesia, but a deal with India is also important. 'Right now, we need strong partnerships and clear prospects in global trade.' •
Words: Katja Vaders
Pictures: BostonScientific.de/Daniel Käsler, IHK Düsseldorf/Copyright F. Gemein, U.S. Department of State