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Post COVID-19: 10 Reasons Germany will be Your Next Best Market

Last updated on 06/03/2020 at 05:16 PM.

The airports are empty, automobile production is at a standstill, cinema and bars are closed and shop owners fear for their economic existence. The Kiel Institute for the World Economy predicted that German economic output could collapse by almost nine percent this year. This would correspond to a loss of more than 300 billion euros and would be by far the worst economic slump since the end of the Second World War. Is this the end? We list 10 reasons why international companies have opportunities in Germany after the COVID-10 crisis.

Couple wearing masks due to Covid-19 restrictions, Crispy Content®
Couple wearing masks due to Covid-19 restriction

Reason 1: Few countries are managing the Corona crisis as carefully as Germany

While in many countries people fear for their economic existence during the Corona crisis, those who live in Germany are comparatively well positioned. According to a ranking of the London Deep Knowledge Group (DKG), Germany is currently the safest and most stable country in Europe. On a global scale, only Israel manages the crisis better. 

 

Reason 2: Germany’s COVID-19 strategy makes the crisis manageable

The German authorities do not know how Corona will develop in the next few days. However, they have decided on various packages of measures to cushion the impact of the various scenarios that could occur. These include a billion-dollar shield for companies, short-time working schemes and tax deferrals solo entrepreneurs can even claim that. 

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Reason 3: As the world’s fourth largest economy, Germany has plenty of potential

Germany is the largest economy in Europe and the fourth largest in the world after the USA, China and Japan. Germany is home to high-turnover sectors such as automotive engineering, mechanical and plant engineering, the chemical industry and medical technology, which account for well over half of the gross domestic product.

Germany invests 92 billion euros annually in research and development. However, Germany has the largest export surplus in the world. The government knows this and wants to solve this problem – through imports and foreign investment. You should seize this opportunity.

Reason 4: The German economy is not digitally transformed

The entire world is going digital – and Germany is having a hard time doing so. According to a survey conducted by the IMD World Competitive Center, Germany, as the most important European business location, is only in 17th place. In the next five to ten years, it will be decided who will be among the winners and who among the losers of the digital transformation.

Companies are putting their business models to the test and urgently need inspiration and support. That’s why international companies in the digital sector are finding a market full of financially well-equipped and needy prospects after the crisis.

 

Guys on a playground wearing masks due to Covid-19 restrictions, Crispy Content®
Guys on a playground wearing masks due to Covid-19 restrictions

Reason 5: Germany is learning Remote Work finally

To stem the spread of COVID-19 in Germany, many companies are sending their employees to their home office this week. Parents in particular are taking advantage of this opportunity, provided it is given, to be able to look after their children since daycare centres and schools across the country were closed on Friday because of the corona virus.

According to a March 2019 survey of more than 1,000 employees by the German Digital Industry Association (BVDW), 45.7 percent of those surveyed do not yet think their employer is ready to do so. The companies have a lot of catching up to do. No wonder, because Germany is not a country with an extensive area. Distances are scant, travel costs are low and remote work is not necessary. Anyone who helps companies integrate this model now will get the best customers.

 

Reason 6: Germany’s most valuable industries have the biggest digital innovation backlog

Everyone knows the label “Made in Germany”. The mechanical engineering industry is largely responsible for this. Germany’s mechanical engineering companies are better off than they have been for years. But at the same time the industry is at different stages of its digital journey.

Blockchain, Smart Factory or Predictive Maintenance are problems that are neither understood nor solved, even at board level, since 2019 at the latest. So while the figures send a positive signal, the digital change is only slowly taking hold. There is a lack of partners with whom comprehensive plans for the future can be forged. You could be the innovation partner.

 

Reason 7: The German state is liquid and finally promoting

In the past, tax revenues increased year after year thanks to the economy. There were no tax gifts. At the latest now, in the Corona crisis, the state is incurring new debts to support German companies. In April, the German government launched a billion-euro rescue package for the economy. Companies can continue to operate. International companies that advise German customers and sell them services or products can enjoy this.

 

Reason 8: Germany offers secure conditions for investors

A study published in 2019 by the American Chamber of Commerce shows that the German business location is particularly popular with American companies. 81 percent of the companies surveyed thought the location was “very good or good”. A further 97 percent of managers stated that they wanted to expand or maintain their activities in Germany in the next three to four years. This applies not only to US companies: Germany is the world’s most important location for new companies from China. The legal framework, but above all legal certainty, is one of the most important decisive factors for this development.

 

Reason 9: Germany is waiting for investors

According to an EY study, the number of foreign investments in Germany will fall in 2019 for the first time in years. This is the first decline ever since the annual survey began in 2005. Germany could lose its role as a growth engine for the European economy.

According to the survey, foreign companies active in Germany are increasingly critical of German location policy. The proportion of negative assessments rose from 22 to 37 percent compared to the previous year. 

Transport infrastructure, the stability in Germany’s political and legal environment and the level of qualification of the workforce are actually good arguments. In order not to gamble this away, Germany will have to move – at the latest after COVID-19. There is a lack of dynamics and impulses, ideal for you?

 

Reason 10: COVID-19 forces German politics and business to rethink

COVID-19 questions many decisions made by the German economy and politics: Tough digitization, lack of broadband expansion, adherence to outdated technologies, hardly any willingness to take on debt and invest in innovation – this makes the German economy open for innovative offers.

The Summary

Now, in the middle of the Corona crisis, seems to be an inappropriate time for such offers. But there will be a future after COVID-19 – and it probably looks more promising in Germany than in most countries of the world. The opportunities are there, you just have to seize them.

Crispy Content Newsletter


Gerrit Grunert Founder & CEO Gerrit Grunert

Gerrit Grunert is the founder and CEO of Crispy Content®. In 2019, he published his book "Methodical Content Marketing" published by Springer Gabler, as well as the series of online courses "Making Content." In his free time, Gerrit is a passionate guitar collector, likes reading books by Stefan Zweig, and listening to music from the day before yesterday.

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