GERMAN AMERICAN. Wolfgang Marzin CEO, Leipziger Messe GmbH

Transcription

1 GERMAN AMERICAN Volume 18 Number 2 March 2007 $5.00 Magazine of the German American Chamber of Commerce GACC 75 Broad St NY, NY USA PRSRT STD US POSTAGE PAID PERMIT #3621 BUFFALO, NY Wolfgang Marzin CEO, Leipziger Messe GmbH Zeit Der Stoff Aus Dem Das Leben Ist Honorary Consul: Kurt Waldthausen Transatlantic Trade Thuringian Delegation Solar Conference AGCO Feeding the World

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3 Viewpoint The U.S. has been widely regarded as a leader in marketing strategy and The article which appears on page 20 gives some examples of how the German-American representation, German companies entrepreneurship for decades. Chamber of Commerce in can concen- New technologies and method- Atlanta and its members have trate on their ologies are constantly deployed assisted German companies in core business to appeal to a customer that is meeting the challenges of the of creating becoming increasingly immune U.S. market. and building to traditional forms of persua- It is in this complex U.S. mar- the high-qual- sion. Buzzwords such as keting and operating environ- ity products blogging, podcasting, search ment that the German-American on which they engine optimization and Guerril- Chambers in Atlanta, Chicago have estab- la marketing garner much media and New York have become a lished their attention, but more mundane capable partner for small to reputation at challenges occupy the mind of medium-sized German compa- home. an executive running the sub- nies. To supplement what the DEinterna- sidiary of a German mid-sized company. It s no surprise that many German companies looking to enter the U.S. market often underestimate the complexity of marketing their products in this German Chambers have done for many decades, the new marketing brand DEinternational was created in 2006 to act as the global marketing arm of the Chambers. DEinternational combines the knowledge and tional and the AHK s provide not only business development and information services but also business networking and relationship building opportunities. These complementary responsibilities enable the German Kristian Wolf CEO & President German American Chamber of Commerce of the Southern United States country, and have a difficult time resources of the global chamber Chambers to provide their clients adapting to the U.S. business organization into a seamless net- with accelerated business devel- environment. Studies conducted work assisting clients and opment capabilities, not only in by Droege & Comp in coopera- members with their business the U.S. but all over the world. tion with the GACC South have activities worldwide. Organizations must continual- shown that German companies Through DEinternational ly reinvent themselves to meet which market and sell their prod- companies can operate in the evolving client needs in today s ucts using the same sales U.S. as American companies, uti- competitive global marketplace, methods that they do in Ger- lizing not only the chambers and the German Chamber sys- many end up having extreme business contacts and knowledge tem has now evolved into a difficulties here in the U.S. Exec- but also having the capability to responsive, customer-driven enti- utives of German subsidiaries implement the company s mar- ty that can help German who have been tasked with run- ket growth strategies utilizing companies face the challenges ning the U.S. operation but not U.S. marketing and sales method- and the opportunities in a global granted the autonomy to adapt ologies. Managing the economy. their strategy to the U.S. market- company s sales and marketing And while German companies place often become frustrated functions from Germany was are seizing upon new opportuni- and leave or merely become the often fraught with the pitfalls ties from Chile to China, the U.S. pilot of a sinking ship. stemming from miscommunica- continues to be a significant mar- An analysis of challenges that tion and cultural business ket, importing over $84 billion German companies face when practices that are in reality much worth of products from Germany entering the US-market is provid- more dissimilar than German in DEinternational stands ed by Katja Ridderbusch, a companies realize. ready to assist our German former correspondent for Han- By offering services from clients by being their feet on the delsblatt in Brussels and author address research to marketing ground in this expanding and of the book Unknown Entities. research and strategy and sales fertile marketplace. German American Trade Vol. 18 No. 2 3

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5 Contents Features 12 Zeit Der Stoff Aus Dem Das Leben Ist. Zeit ist immer zu wenig. Von früh bis spät rennen die Minuten davon, und wir ihnen hinterher, stets ein wenig verspätet. Schon beim Aufstehen keimt die bange Ahnung, dass man auch heute nicht annähernd all das erledigen wird, was zu erledigen wäre. Und morgen wird der Berg der Aufgaben noch etwas höher sein. 16 Honorary Consul: Kurt Waldthausen. In cooperation with the German embassy s press office in Washington, photographer Gunter Klötzer developed the conceptual design of the Honorary Consuls project. Member Profiles 28 Feeding the World AGCO is the third largest farm machinery company worldwide with its headquarters in northeastern Atlanta. Although located in the U.S., AGCO has originally German roots and is managed by a German named Richenhagen. Regulars 3 Viewpoint Buzzwords such as blogging, podcasting and Guerrilla marketing garner much media attention, but more mundane challenges occupy the mind of an executive running the subsidiary of a German mid-sized company. 33 Economic Indicators 34 Masthead Cover Story 6 Leipziger Messe backs international business The Leipzig Messe is regarded as one of the oldest fairs in the world and at the same time one of the youngest and most modern saw the opening of the futuristic-looking exhibition centre to the north of Leipzig, with its impressive steel and glass architecture symbolising transparency and a cosmopolitan attitude. A cosmopolitan approach is also typical of the business strategy pursued by the Messe boss Wolfgang Marzin: A strategic key focus in the development of the Leipziger Messe is the intensive expansion of foreign business. Contents Regions 20 Atlanta Unknown Entities. American business culture is often a hurdle for German companies. 22 Midwest Transatlantic Trade Tops the Agenda at GACCoM s 2nd Annual Economic Forum. 24 Washington Global Trade and the Office of Foreign Asset Controls 26 San Francisco Thuringian Delegation Solar Conference German American Trade Vol. 18 No. 2 5

6 Cover Story Cover Story The 85m high Messeturm a steel-based tower at the entrance of the Exhibition Centre Leipzig is visible from a distance. 6 German American Trade Vol. 18 No. 2

7 Cover Story Leipziger Messe backs international business Interview with Wolfgang Marzin, CEO, Leipziger Messe GmbH Mr. Marzin, you earned your credentials in the U.S. as the CEO of Messe Duesseldorf North America (MDNA)in Chicago. Which changes did you introduce back then to restructure the business? Marzin: 10 years ago, in 1997 the MDNA was mired in debt. The first thing we did was to expand MDNA's business segments through improved cultural training, increased stand construction, better event and press relations and a greater presence of German pavilions at trade shows in the U.S. The result was a significant increase in sales. On my return to Germany the MDNA boasted a positive balance sheet along with a surplus of services. When you became CEO of Leipziger Messe in 2004 you obviously followed your recipe for success? Marzin: In 2004 I became CEO of the Leipziger Messe. Since then, and up until now, the Leipziger Messe has had the highest numbers of exhibitors as well as visitors since German reunification is expected to be even better and may be our record-breaking year. With around 11,000 exhibitors and 1.6 million visitors a year, and with steady and dynamic business development, the Leipziger Messe has clearly joined the ranks of the ten leading fairs and exhibition venues in Germany. A whole string of events are at an international level, such as the AMI, denkmal, the world keynote fair ORTHOPAEDICS + REHAB TECHNOLOGY, the suppliers fair Z, the Leipzig Book Fair or the leading European event, GC Games Convention. Where do you see the decisive potential for the development of the Leipziger Messe? Marzin: Strategic key focuses for the development of the Leipziger Messe are its positioning as the trade fair venue market leader in the emerging Euro-region of Eastern Germany Poland Czech Republic and intensive expansion of international business. It s a matter of optimising the programme of fairs and services. We will do more to develop new products and will invest in attracting guest events and conventions. German American Trade Vol. 18 No. 2 7

8 Cover Story A bird s-eye view of the Exhibition Centre Leipzig. In the age of the trade show, will you be looking for cooperative ventures and also partners outside Germany? Marzin: We will be expanding our international activities all round. Through our subsidiary Leipziger Messe International (LMI), we are setting up strategic partnerships with organisers and associations in other countries. Eastern Europe and Asia make up a current focus. We have recently concluded an agreement for close cooperation with the biggest fairs and exhibition company in pursued by the Messe boss Wolfgang Marzin: A strategic key focus in the development Ukraine. But we are also interested in A strategic key focus in the of the Leipziger Messe is the intensive expansion of the US and South development American market. foreign business. In All these activities of the Leipziger conjunction with serve primarily to Messe is EU expansion, we strengthen business launched a wideranging international the intensive in Leipzig and to interest more international exhibitors expansion of foreign offensive two years ago. It was the longterm objective to and visitors in our business. fairs. It is our longterm achieve around 40 objective to be making around 40 per cent of sales from foreign customers by per cent of sales from foreign customers by We will invest more in new product development and in attracting national and international Leipziger Messe on course guest events, conferences and for expansion conventions, continues The Leipzig Messe is regarded as one of the oldest fairs in the Marzin. To this end, the Messe was setting up strategic partnerships world and at the same time with organisers and one of the youngest and most modern saw the opening of the futuristic-looking exhibition centre to the north of Leipzig, with its impressive steel and glass architecture symbolising associations in other countries through its subsidiary Leipziger Messe International (LMI). The focus is on Central and Eastern Europe, in particular Poland, Czech Republic, Russia and transparency and a Ukraine, as well as Asia and cosmopolitan attitude. A cosmopolitan Latin America. Marzin: Some approach is also of our fairs have become typical of the business strategy keynote European events for 8 German American Trade Vol. 18 No. 2

9 Cover Story their industries, with the GC Games Convention leading the field. One of the most important get-togethers for the suppliers industry in Europe, the suppliers fair Z, has been able to increase the participation of foreign companies in the last two years from twelve to the current figure of 37 per cent. A perfect example of how gaps in the international trade fair programme can be closed hand in hand with foreign professional associations is the latest product from Leipziger Messe: the L.A.B., due for its first presentation in London next autumn. It is our aim for the L.A.B. to establish itself as the leading trade show and congress for analytical, biological and laboratory equipment in the UK, explains Marzin. Although Germany is the main trading partner, up to now only a fraction of the British market has attended the key international events in Germany. That s why we are going direct to the market centre in London. The fact that the gap in trade fair business is being closed in a medical context is no accident, given that demographic change is making healthcare a market for the future, and Leipzig has expertise and long years of experience on this sector. Since 2000, Leipzig has hosted the world s keynote fair and the world congress Orthopaedics + Rehab Technology, with 83 visitor nations making it the most international product at the Leipzig venue. Every second exhibitor comes from abroad. Heart of the Exhibition Centre Leipzig: The central entrance hall, constructed out of steel and glass. In the Congress Center Leipzig 19 conference rooms, equipped with most modern technical facilities, offer optimal possibilities for conferences and congresses. German American Trade Vol. 18 No. 2 9

10 Cover Story Leipziger Messe News: Games Convention in Asia From 7 to 9 September 2007, the first GCA Games Convention Asia is being held in Singapore. As organisers of Europe s biggest fair for the industry, the GC (Games Convention), the Leipziger Messe has granted the right to use the name to the Singapore organisers CEMS (Conference & Exhibition Management Services Pte Ltd). Accordingly, the new event, based on the concept of the successful Leipzig GC, is permitted to use the description Games Convention in its title. Wolfgang Marzin, CEO of LMI Leipziger Messe International GmbH (a subsidiary of the Leipzig Fair), explains: The GCA Games Convention Asia is a fair for the Asian-Pacific region and is being managed by the Singapore organisers CEMS. LMI supports the event with the know-how we have acquired in Leipzig. Cooperation with Brazil Leipziger Messe GmbH has signed a partnership agreement with the Brazilian fairs company Fispal (Agéncia Internacional Privada de Desenvolvimento do Mercado de Alimentos), providing for the mutual representation of the two companies in Europe, as well as in South America and Florida. In future, Fispal will represent Leipziger Messe in Brazil, Argentina, Uruguay, Chile and Florida. This mandate relates above all to the fairs GÄSTE (International Trade Fair for the Restaurant, Hotel and Catering Business), AMITEC (Trade Fair for Vehicle Parts, Garage Workshops and Services), TerraTec (Internationial Trade Fair for Environmental Technology and Services) and enertec (International Trade for Energy). Fair in London Headlined L.A.B., a trade show for analytical, biological and laboratory equipment is being organised in London by the Leipziger Messe GmbH every two years as from October The L.A.B. trade show and congress focuses on the German-British market. The market for analytical, biological and laboratory equipment in Europe is currently worth about 15 billion euros, with German and British manufacturers accounting for over 50 per cent of European sales. SPECTARIS, German Industrial Association for Optical, Medical and Mechatronic Technologies, is acting as advisory supporter for the L.A.B.. Contact for the press: Thomas Tenzler Director, Public Relations Phone: +49 (0) Fax: +49 (0) [email protected] The central entrance hall accommodates a service area and offers room for special shows and activities. 10 German American Trade Vol. 18 No. 2

11 Cover Story Wolfgang Marzin, CEO, Leipziger Messe GmbH Wolfgang Marzin (40) graduated in business management and began his career in 1989 as project director for foreign fairs at Internationaler Messe- und Ausstellungsdienst in Munich. In 1991 he moved to the Münchner Messegesellschaft and after six years to the Messe Düsseldorf. He ran their subsidiary in Chicago. From 2002 to March 2004, Marzin was CEO at the Gesellschaft für Handwerksmessen in Munich. Since 1 April 2004, the father of three has been CEO at Leipziger Messe GmbH. What would be the biggest disaster for you? I don t have the imagination to answer that (luckily). Where would you most like to live? I still have to find that out. Up to now, I have always been very happy everywhere I ve lived. What do you see as perfect happiness? Harmonious and successful combination of family and work. What faults are you most likely to excuse? Forgetfulness. Your greatest success so far? Personally speaking, getting my wife to be interested in me. Professionally, having taken a trade fair company in the USA from extreme deficit and made it into a profitable enterprise. Personally and professionally, what always counts is that success is team success and almost never down to just one person. Your heroes of the present day? Emergency doctors and helpers in disaster areas. What s your favourite holiday destination? Chicago in the summer. It s got everything: culture, sandy beaches, great water, a fantastic atmosphere and lots of good friends. Have you ever thought of changing careers? No, as far as I m concerned there s no other more interesting and challenging career on the service sector. And this is where I have my strengths. What characteristics do you value most in a man? Sincerity, and humour. What characteristics do you value most in a woman? Charisma and humour. Your main characteristic? Friendliness and straightness. Your biggest fault? Impatience. Your favourite poet? Heinrich Heine. What book are you reading at the moment? I m reading We are going on a bear hunt to my children and for myself, progressing very slowly with Angela s Ashes. What do you most dislike? Underhandedness, cowardice and freeloading. What sports do you do? I can only answer that if we narrow it down to would most like to do: mountaineering of all kinds, running, tennis and cycling. What natural talent would you like to have? To be musical. What website do you look at most frequently? Who would you describe as a competent politician? Richard M. Daley, mayor of Chicago. Your motto in life? Live and let live. Keep the right balance between effectiveness in your career and relaxation in private. What would you like to be said about you when it s all over? He made things happen. German American Trade Vol. 18 No. 2 11

12 Features Zeit Der Stoff Aus Dem Das Leben Ist Eine Gebrauchsanleitung Von Stefan Klein, Der Autor des Bestsellers Die Glücksformel 12 German American Trade Vol. 18 No. 2

13 Features Zeit ist immer zu wenig. Von früh bis spät rennen die Minuten davon, und wir ihnen hinterher, stets ein wenig verspätet. Schon beim Aufstehen keimt die bange Ahnung, dass man auch heute nicht annähernd all das erledigen wird, was zu erledigen wäre. Und morgen wird der Berg der Aufgaben noch etwas höher sein. About the Author Hilfe verspricht Ihre Buchhandlung. Dort stehen ganze Regale von Bänden bereit, die dem Leser beibringen wollen, seine Zeit zu managen. Man braucht nichts als einen Stift, einen Kalender und den guten Vorsatz, in seinem Leben Ordnung zu halten. Zunächst gilt es, eine Liste mit allen Vorhaben anzufertigen, etwa: * Blumen gießen * Schwarze Socken kaufen * Müll runterbringen * Schreibtisch aufräumen * Kinokarten reservieren * auf Gehaltserhöhung dringen Hoffentlich haben Sie nichts vergessen. Nun wird empfohlen, neben jede Aufgabe einen geschätzten Bedarf an Minuten und einen Termin hinzuschreiben und schließlich einen Tagesplan anfertigen. Am Abend kontrolliert Sie,ob Sie ihr Pensum erledigt haben und machen neben allem, was weggeschafft ist, zufrieden ein Häkchen. Das war s. Haben Sie in Ihrer Tagesplanung auch genug Zeit dafür vorgesehen, um Ihre Listen zu verwalten? Vielleicht hat Ihnen das Buch verschwiegen, wie lange das dauert. Ansonsten sind die Vorschläge wirklich nicht schlecht und ebenso wenig neu. Der römische Stoiker Seneca legte sie im Jahr 62 nach Christi in seinen Moralischen Briefen seinem jüngeren Freund Lucilius ans Herz. Nimm Deine Zeit peinlich genau zusammen, mahnte Senec, der größte Teil unseres Lebens geht dahin mit unwürdigem Tun, ein großer mit Nichtstun. Und doch ahnte schon der Philosoph, dass seine Methode zum Scheitern verurteilt war: Es geht mir wie dem, der trotz allen Aufwandes doch sorgfältig nachrechnet. Gewiss kann ich nicht sagen, dass ich ohne Verluste davon komme; aber ich kann angeben, was ich verliere, warum und wie. Warum Unternehmen in Deutschland Jahr für Jahr Millionen Euro für Seminare ausgeben, in denen Rezepte erklärt werden, die schon Seneca kannte, gehört zu den Rätseln, für die man lieber keine Zeit einplanen sollte. Organisationspsychologen, die der Sache in ausführlichen Studien nachgingen, kamen zu einem vernichtenden Schluss: Das so genannte Zeitmanagement ist nutzlos. Es steigert weder die Arbeitsleistung, noch führt es zu größerer Gelassenheit. Und schon gar nicht taugt es dazu, Zeit zu sparen. Stefan Klein was born in Munich. He studied physics and philosophy at the universities of Munich and Grenoble and completed his PhD in biophysics in Freiburg. He has written for all of the large German-language newspapers and magazines. He was science editor of DER SPIEGEL from , and on-staff writer with GEO from He is now a freelance writer in Berlin. He is considered one of the most influential science writers in German-speaking Europe. In 1998 he won the prestigious Georg von Holtzbrinck Prize for Scientific Journalism. His much-acclaimed slim volume THE DIARIES OF THE CREATION (DIE TAGEBÜCHER DER SCHÖPFUNG) was published in His work THE SCIENCE OF HAPPINESS has sold more than copies in German alone since its release in 2002 and was translated into 24 languages. ALL BY CHANCE (ALLES ZUFALL) was published in His latest book is TIME (ZEIT), released in 2006 is currently being translated into English. German American Trade Vol. 18 No. 2 13

14 Features Im Grunde wirken die Tipps wie eine Diät. In den ersten Tagen ist man voll Begeisterung. Aber bald erlahmt der Eifer, und man fängt an, sich bald die eine, bald die andere Ausnahme zu gestatten. Nach ein paar Wochen ist alles wie gehabt. Die Vorsätze entsprachen einfach nicht der menschlichen Natur. Doch in der Not klammert man sich an alles, was Rettung verspricht. Und die Not mit der Zeit wird immer größer. Wie nie zuvor ist unsere Gesellschaft heute besessen von der Idee, jede einzelne Stunde zu nutzen. So beschleunigt sich der Takt des Lebens weiter und weiter. Wir alle nehmen teil an einem riesigen Experiment im Umgang mit der Zeit. Wie sehr das Lebenstempo gerade in den letzten Jahren zugenommen hat, lässt sich am besten an den vermeintlich kleinen Dingen des Alltags ablesen: Fotokopierer mit einem Ausstoß von 30 Blatt pro Minute; Internetprovider, die ihre Kunden mit Anschlüssen locken, bei denen sich die Seiten um ein paar Zehntel Sekunden schneller aufbauen als bei der Konkurrenz; Selbstbedienungscafés, die ihre Heißgetränke To Go anbieten. Die Tasse Kaffee, für Generationen von Europäern eine Gelegenheit zum Gespräch und der Muße, wird unzeitgemäß. In nur zehn Jahren stieg Anteil der Angestellten in Europa, die sich über ein hohes Arbeitstempo beschwerten, von 47 auf 56 Prozent. Mehr als zwei Drittel aller Deutschen empfinden die ständige Hektik und Unruhe als den größten Auslöser von Stress. Erschreckend sind diese Zahlen vor dem Hintergrund neuer Ergebnisse aus der Neurobiologie: Allein das Gefühl, ständig unter Druck zu stehen, kann das Gehirn dauerhaft in Mitleidenschaft ziehen und mindert sogar die Lebenserwartung. Doch paradoxerweise haben wir heute nicht weniger, sondern mehr Zeit zur freien Verfügung haben als Menschen jemals zuvor. Arbeitstage von zwölf oder mehr Stunden sind für die meisten Deutschen Vergangenheit; Spülmaschinen und Mikrowellenherde nehmen uns Arbeit ab. Vor allem aber hat sich während der letzten 100 Jahre die Lebenserwartung beinahe verdoppelt. Wir hätten also eigentlich allen Grund, uns zu entspannen. Ganz offensichtlich hat die Lebenszeit, die zur Verfügung steht, wenig damit zu tun, ob wir uns arm oder reich an Zeit fühlen. Und lässt sich das Gefühl der Hetze wirklich allein mit vielen Terminen erklären? Jeder kennt Menschen, die gut gelaunt und in aller Ruhe ein geradezu unvorstellbar dichtes Programm bewältigen können. In Wirklichkeit hat Zeitnot so gut wie gar nichts mit der Zahl freier Minuten zu tun. Dies lässt bereits das so genannte Rentnersyndrom ahnen bekanntlich leiden viele Menschen im Ruhestand unter ständiger, für Ihre berufstätige Umgebung schier unverständlicher Zeitknappheit. Das Gefühl der Hetze hat andere Ursachen, wie neue Forschungsergebnisse zeigen. Im Kern handelt es sich um eine Überlastung des Gehirns. Wir fühlen uns unter Druck, wenn so viele Informationen eintreffen, dass bestimmte Zentren des Großhirns (im so genannten präfrontalen Cortex) nicht mehr auswählen können, was gerade am wichtigsten ist. Dann wissen wir buchstäblich nicht mehr, wo uns der Kopf steht. Eine der wichtigsten Ursachen dafür ist Stress. Meist erklären wir uns den Stress damit, dass wir so wenig Zeit haben. Das ist ein verhängnisvoller Irrtum. Denn in Wirklichkeit verhält es sich genau umgekehrt: Wir sind nicht gestresst, weil wir keine Zeit haben. Sondern wir haben keine Zeit, weil wir gestresst sind. Termindruck ruft so lange keinen Stress hervor, wie wir uns als Herr der Lage fühlen. Ängste und Unwägbarkeiten jedoch was ist, wenn das Kind ausgerechnet vor der wichtigen Präsentation krank wird? setzen jedoch eine Stressreaktion in Gang, ganz gleich, ob die Zeit bequem zur Erfüllung der Aufgabe reicht oder nicht. Und fatalerweise schaltet diese im Gehirn gerade die Zentren ab, die für Planung und Übersicht zuständig sind. Oft ohne dass wir es merken, dauern plötzlich alle Verrichtungen länger. Wir fangen an, uns zu verzetteln und machen Fehler, die auszubügeln wiederum Zeit kostet. 14 German American Trade Vol. 18 No. 2

15 Features Nun gäbe es ein geradezu unverschämt einfaches Mittel, gegen zu steuern: Die Arbeit liegen lassen, kurz durchatmen, und dann eine halbe Stunde Bewegung gleich welcher Art. Dies würde den Pegel der Stresshormone schnell wieder auf einen Stand bringen, an dem konzentriertes Arbeiten wieder möglich wird. Aber gerade für diese wirksame Abhilfe meinen wir keine einzige freie Minute zu haben. Stress hat die Menschen immer geplagt, in unserer heutigen Welt aber kommt ein Faktor hinzu: Die Flut an Information, die beinahe ständig auf uns einstürzt, strapaziert das Gehirn oft bis an seine Grenzen. Die Aufmerksamkeit springt hin und her, die Konzentration lässt nach, wir werden unfähig, uns eingehend mit einer Angelegenheit zu befassen. Das Bombardement mit Reizen wirkt nämlich ähnlich wie Stress: Die Filter für wichtig und unwichtig funktionieren nicht mehr, wir werden planlos. In manchen Milieus hat die Überlastung erschreckende Ausmaße angenommen. In amerikanischen Untersuchungen zeigten sich Angestellte in einem ganz normalen Bürotag zwischen , Telefon und Konferenzen nicht mehr imstande, länger als durchschnittlich drei Minuten bei einer Sache zu bleiben. Abgesehen davon, dass das meiste so unerledigt bleiben muss, ist der ständige Wechsel enorm anstrengend. Denn für so schnelle und so häufige Szenenwechsel ist das Gehirn nicht gemacht. Die Schwierigkeit ist also keineswegs, dass unsere Zeit zu knapp wäre. Uns macht vielmehr zu schaffen, dass wir es schlecht verstehen, mit ihr umzugehen. Rezepte, die sich schon vor 2000 Jahren als unzureichend erwiesen haben, helfen da nicht weiter. Wir brauchen eine neue Kultur der Zeit. In einer Welt, die sich rapide beschleunigt, müssen wir uns das Wissen darüber zunutze machen, wie das Erleben der Zeit im Menschen entsteht, und wie das Gehirn eingerichtet ist, mit Zeit umzugehen. Zu diesen Themen hat die neurobiologische Forschung in letzten Jahren wesentliche Erkenntnisse gewonnen. Die nötigen Schritte kann jeder einzelne tun. Mehr Souveränität über die eigene Zeit mindert die Stressbelastung. Darum sollten die Bürger von Unternehmen, Behörden und selbst Schulen fordern, den starren Stundenplan des öffentlichen Lebens zu lockern, wo immer es geht. Echte Souveränität über die Zeit gewinnt allerdings aber nur, wer dies als Wert in seinem Leben anerkennt. Stehen mehr Wohlstand oder mehr Freiheit, seine Zeit zu gestalten, zur Wahl, entscheiden sich noch immer die meisten Menschen für das Geld. Eine Unze Gold kann nicht eine Minute Zeit aufwiegen, sagt ein chinesisches Sprichwort. Das in unserem Leben eigentlich knappe Gut ist allerdings nicht Zeit, sondern Aufmerksamkeit. Deshalb ist es in einer an Information überreichen Umwelt entscheidend, die Filter der Aufmerksamkeit zu stärken. Konzentration kann man lernen. Gezieltes Training hilft, stärker das Wesentliche im Blick zu behalten und weniger ablenkbar zu sein. Eine neue Kultur der Zeit schafft darüber hinaus Zonen des Ausgleichs, in denen wir uns bewusst von den Reizen und Anforderungen der Umgebung zurückziehen. Und sie schafft ein Gegengewicht zu unserer von der Vergangenheit und Zukunftshoffnungen besessenen Gesellschaft, indem sie die Wahrnehmung des Augenblicks schult. Aufmerksamkeit ist immer abhängig von Motivation. Wohin sich das Augenmerk, können wir kaum bewusst kontrollieren; das Gehirn steuert Aufmerksamkeit wie einen Suchscheinwerfer ganz von selbst, aber entsprechend unseren eingestanden oder uneingestandenen Wünschen. Wer ein neues Verhältnis zur Zeit gewinnen will, kommt daher nicht umhin, bei seinen Sehnsüchten, Gedanken und Gefühlen anzusetzen und sich über seine Vorlieben Rechenschaft abzulegen. Allzu oft reden wir uns ein, wie ein Galeerensklave dem Takt hinterher zu hetzen, den andere uns vorgeben. Doch wir sind viel weniger Opfer der Umstände, als wir meinen. In jenem Maß, indem wir diese Selbsttäuschung durchschauen, beginnen wir, über unsere Zeit bewusst selbst zu bestimmen. German American Trade Vol. 18 No. 2 15

16 Features Honorary Consul: In cooperation with the German embassy s press office in Washington, photographer Gunter Klötzer developed the conceptual design of the Honorary Consuls project. In cooperation with the graphic designer Lilli Artmann, a 136 pages art publication was produced, portraying all 31 honorary consuls of the Federal Republic of Germany. The publication was designed to support the new public diplomacy approach of the honorary consuls. During their Berlin visit in December 2006 all participants confirmed that this was accomplished with great success. Since 1999 the works of Berlin-based Klötzer focus on image photography for corporations and institutions. His education as a toolmaker and photographer enables him to discuss complex technical questions as well as their realization according to target audience and media requirements. For example, for more than six years he is in charge of the visual representation of Johannes Lübbering GmbH, a company producing highly precise tools and special machinery for the automotive and aviation industry. With his support several catalogues and brochures have been produced. The trade show booths of this internationally operating group enable the viewer to gain individual access to a company that places great emphasize on the quality of its products as well as image representation. Klötzer s editorial photography is published in several renowned German magazines. His passion is directed at reportage and portrait topics. Increasingly, he works as an advisor, always with an interdisciplinary communication approach. In cooperation with book designers Klötzer published several books and with curatorial support he realized exhibitions at home and abroad since From 2003 on the project-experienced photographer has been making his contribution to transatlantic discourse. Until today he portrayed 120 German born expatriates in the US and interviewed them on the relationship between old and new home. A first result can be found at A book and traveling exhibition are planned for the course of this year. Klötzer studied photography and film design, typography and visual communication at the Bielefeld University (diploma 2002) as well as book design, photography and visual sociology at Freie Universität Berlin, Bremen and Potsdam (M.A. 2006). contact: [email protected] 16 German American Trade Vol. 18 No. 2

17 Features Kurt Waldthausen Series: Part 1/9 I spent the first years of my life in Portugal, before my family moved back to Germany where I completed my education. I began my career with an international trading firm in Bremen. A year later I was transfered to Karachi, Pakistan, where I worked for five interesting years. In 1982 I was offered a position in the USA, which always held a great fascination for me. I fell in love with North Carolina and decided to stay. Ultimately I started my own executive search firm. How would you characterize both your relationship to Germany and Germany s importance to you? My relationship to Germany is naturally very strong, both from a business standpoint and from a personal one as I spent most of my youth and young adulthood there. Germany will forever be my homeland, and I am fortunate to visit monthly and reconnect with many family members and friends. Why have you agreed to serve Germany as an unsalaried honorary consul? The position as honorary consul provides me with the opportunity to foster and nurture the relationship between the business community of North Carolina and the people of Germany. In this position I have the opportunity to assist in the economic development of the state of North Carolina by bringing additional German companies to this region. Interestingly enough there is no other region in the USA with a greater number of German firms than the Charlotte region. German businesses have already invested more than 4 billion $ in North Carolina, and the 200 German subsidiaries employ staff in excess of 30,000. What do you value most about Germany and its people? What I value most about Germany is the beauty of the country from the North Sea to the Alps, the diversity of its people, the dialects, customs and its culinary delights. The prowess of the German people in technology is admirable. What do you value most about the United States and Americans? What I love about the United States are its easygoing, friendly people and the sheer size and beauty of the country. There is ample space for continual building of condominiums, private homes, shopping malls as well as green space for parks, gardens, and beautification of city streets, which all add to the quality and pleasure of the everyday lives of American peo- German American Trade Vol. 18 No. 2 17

18 Features For a Free Copy of Honorary Consul To order the complete Honorary Consul brochure (free of charge), please contact: The Embassy of the Federal Republic of Germany in Washington Barbara Stiem Press, Information and Public Affairs Phone: (202) Fax: (202) [email protected] ple and particularly North Carolinians. I have had the privilege of being warmly welcomed by my neighbors, the business community and the people who have crossed my path these many years. In what respect is Germany important to your region or the United States? The economic impact that Germany has made in North Carolina is considerable, as stated above, and Germany today is the largest foreign investor in North Carolina. In towns along the beautiful coast of North Carolina such as Wilmington, Germans have made a great impact. In general, Germans are well regarded in our region. In the photograph you will see that I am holding the model of a NASCAR racecar. Charlotte recently was awarded the NASCAR Hall of Fame, now under construction. NASCAR is a multi-billion-dollar business that the U.S. hopes to bring to Germany in the future. How would you describe your role as a link between Germany and the United States? As a link between Germany and the U.S. or more specifically North Carolina, my role, in short is, to encourage and promote bilateral trade and investment, to promote or create cultural events to bring Germany closer to the people of North Carolina and to support German institutions, such as the different German-oriented social clubs, the German-American Chamber of Commerce, the German Saturday School in Charlotte and the Deutsche Kirche. All of these play a vital role in our community and make a positive contribution to the region. What impact do the political relations between the two countries have on your work? I am often asked whether political relations between our two countries have any impact on my business. I can say with certainty that German-American relations have undergone some difficult periods in the past five or six years, but when it comes to business Americans and Germans alike are very pragmatic and focused on available opportunities. They do not let politics enter into economic progress. Always remember: The business of America is business, and the three best-known generals in America are General Electric, General Motors and General Foods. How does your community respond to you as a German honorary consul? The North Carolina community and the Charlotte region in which I live respond very favorably to the North Carolina consular corps, including the German representation. This is evidenced by the great opportunities that exist for both North Carolinians and Germans to do business together and to become friends in the process. The position of honorary consul provides me with the opportunity and the responsibility to showcase Germany and Germans in the best possible manner at all types of different events. What official act that you carried out as honorary consul has influenced or engaged you most? There has not been one particular official act that infiuenced or engaged me the most, but the sum of the many opportunities that I have been able to be a part of, to improve North Carolina-German relations by helping businesses, individuals and cultural or noprofit organizations. I believe 18 German American Trade Vol. 18 No. 2

19 Features in the many small things I can do as honorary consul that help foster the North Carolina- German friendship. What do you wish for Germany and the United States in the future? My wish for German-American relations is that they grow stronger through deep, meaningful communication and exchanges between politicians, educators, scientists, students and people at large. I believe that both our countries can learn from one another and create, together with likeminded countries, a better, in every respect safer and environmentally friendlier world. lakes and farmland, as well as the state s largest urban areas. Western North Carolina is home to our majestic mountains and a variety of outstanding recreational resort areas. Elevations across North Carolina vary from sea level along the coast to peaks exceeding 6,000 feet in the mountains. The state s chief rivers include the Cape Fear, Neuse, Roanoke, Yadkin and French Broad. North Carolinians enjoy a moderate climate characterized by mild winters, long pleasant periods of spring and fall, and warm, humid summers. Precipitation and temperature patterns vary considerably from one region to another within the three regions. Home to two of the nation s largest financial institutions, Bank of America and Wachovia, North Carolina has five nationally-chartered and 88 state-chartered banks. Charlotte is second only to New York City in terms of assets controlled by banks. Advertisement North Carolina North Carolina is a large and diverse state. From the Great Smoky and Blue Ridge mountains in the west to the Atlantic Ocean in the east, residents enjoy a variety of lifestyle, recreational, and employment opportunities. No other state in the nation can boast North Carolina s unparalleled quality of life and excellent business climate. North Carolina s terrain falls into three distinct geographic regions: the coastal plains, the piedmont and the mountains. Bordered on the east by 300 miles of sandy beaches, islands and inlets, the North Carolina coast is renowned for its fishing, boating and recreational opportunities. Central North Carolina s piedmont region is composed of gently rolling plains, picturesque golf courses, Empire Ad German American Trade Vol. 18 No. 2 19

20 Regions ATLANTA By Katja Ridderbusch American business culture is often a hurdle for German companies. Unknown Entities Founding a business in the U.S. is full of surprises for foreigners. German companies that would like to establish a subsidiary in the United States frequently stumble over the differences in American business culture. Yet the U.S. remains one of the most sought after markets for foreigners to start a business. And each year, hundreds of small and medium-sized German companies make their way across the Atlantic to open a subsidiary in the U.S. Most of them face the typical pitfalls connected with entering the American market and make the same mistakes, again and again. European business owners often arrive without a deeper knowledge of the U.S. market. Many Europeans still think in terms of countries, says Kristian Wolf, President and CEO of the German-American Chamber of Commerce, Southeast, in Atlanta. But the American market is highly diversified. Every state, every region is different. The Southeast, for example, is the fastest growing market in the United States. The unofficial capital of the Southeast, Atlanta, with a population of 4.8 million and nicknamed the Silicon Valley of the South, is a booming economic center for telecommunications, high tech and transport with the world s largest passenger airport. About 800 German companies have opened subsidiaries around Atlanta. Thomas J. Harrold, a partner in the Atlanta-based law firm, Miller & Martin, and a corporate attorney who has numerous German clients, is convinced that a lack of knowledge creates the biggest hurdles It is very often the cultural gap between German and American business people causing the biggest problems, he says. German entrepreneurs indeed tend to take the open and casual attitude of their American counterparts as a sign of trust and friendship. A misconception which often proves to be a mistake, as they subsequently sign deals that later turn out to their disadvantage. It sometimes surprises me to see how naïve even seasoned business people act when they start their American adventure, says German business consultant Eike Jordan, who has lived and worked in Atlanta for 28 years. The American style of conducting business, particularly 20 German American Trade Vol. 18 No. 2

21 Regions ATLANTA in the South, may be rather disturbing to matter-of-fact Germans and can cause serious cultural shock, says Tom Harrold with a smile. Here in the Bible Belt, hunting, fishing and college football are sacred. And they are necessary ingredients to every business deal. German business owners also learn quickly that a proud company history and solid capital at home do not necessarily count when entering the American market. Whether they are trying to open a bank account or getting approved for a credit, they are treated as unknown entities by American financial institutions. Without a solid American credit history, which for a newcomer to the country is impossible to have, it is difficult to sign up for a rental agreement, a telephone contract, or access to credit. If you want to start a business as a foreigner in the U.S. you need a lot of patience, says Jordan. And that is not exactly a German virtue. According to Wolf, many small and medium-sized companies are not willing to solidly invest when starting their businesses. He says it is necessary to pay between $50,000 and $100,000 for the startup costs for attorneys, accountants, marketing, advertising and insurance experts. Being cheap doesn t pay, says Jordan. If you are not willing to spend in the beginning, you will have to pay a lot more in the later years. The difficulties have created a market. In the U.S., the socalled incubator services which help small and medium-sized companies get established on the American market have become a booming industry. A company signing up with such firms receives a service package tailored to its needs: a company address and a telephone number for those who only want a low-key presence or a fully equipped office with warehouse and storage space for those who need more. Such firms also help newly established companies apply for a business license and open an account at a bank specializing in foreign businesses such as the Summit National Bank with branches in the states of Georgia and California. Additionally, these firms provide their clients with a list of corporate attorneys, accountants and insurance companies. For many of the smaller and mid-sized German companies new to the U.S. market, the first point of contact is the German-American Chamber of Commerce, with offices in Atlanta, Chicago, New York and San Francisco. The Atlanta Chamber, along with its marketing service agency DE International, currently has 35 companies under its wing. It typically takes three to four years until a newly established company can stand alone. The number one rule for being successful in the American market is making contacts and building a network, says Jordan. American corporate attorney Tom Harrold adds that there are manifold benefits for the American economy when foreign businesses arrive. Incubators with their clients open business opportunities in the service industry for law firms, accounting firms, financial institutions, insurance companies and marketing agencies, he says. When the foreign company graduates and leaves the incubator, it provides new capital investment, new job opportunities and business for real estate developers. About the Author Katja Ridderbusch is an Atlanta based freelance business journalist who writes for the German daily national newspapers Die Welt and Handelsblatt (the Wall Street Journal s German partner paper), the monthly magazine Cicero, which is Germany s equivalent to The New Yorker and the German-American publication The Atlantic Times. Prior to her current position, she covered the wars in the Balkans, Bosnia and Kosovo, for Die Welt. From 2001 to 2005, she was stationed in Brussels, Belgium, as Die Welt s European Union correspondent where she wrote, among other issues, about the introduction of the Euro and the enlargement of EU and NATO. Katja Ridderbusch also works as an international media consultant, teaching U.S. and European business executives how to successfully tell their story to the media on both sides of the Atlantic. German American Trade Vol. 18 No. 2 21

22 Regions MIDWEST Transatlantic Trade Written by Janka Albert, GACC Midwest (from top left): German Consul General Wolfgang Drautz, Frank Mueller, Frank Dettke, David Braun, Vince Lapinski, Dr. Thomas Klier, Simone Pohl President & CEO of GACCoM, Dr. Axel Nitschke, and Michael Backfisch Economic Forum Sponsors On February 1st, 2007, more than 150 executives gathered for the German American Chamber of Commerce of the Midwest s 2nd Annual Economic Forum in Rosemont, IL. Top speakers from both sides of the Atlantic discussed current economic developments in the international and, in particular, the German American business world. The lively event was highlighted by a positive and promising outlook for both economies. Attendees from a variety of industries, companies and backgrounds, including steel, machine tool, automotive, insurance, banking and legal services, were delighted by the propitious expectations. German foreign trade had a large increase in 2006: exports and imports grew by 12%. In 2007, exports are expected to grow even more by approximately 7%. Overall, strong growth is expected in the world economy. In the last quarter of 2006, the US economy grew by 3.4%. These developments are of great significance for transatlantic trade, and accordingly, the Forum attendees from the German American business community asked quite a few interesting questions. In the first panel, Outlook for the US and German Economies in 2007, Dr. Axel Nitschke, Chief Economist at the German Association of Chambers of Industry and Commerce (DIHK) in Berlin, presented the outlook for Germany and Europe, while Dr. Thomas Klier, Senior Economist at the Federal Reserve Bank of Chicago offered the US outlook. Michael Backfisch, Deputy Editor-In-Chief of Handelsblatt was the panel s moderator. Dr. Nitschke explained that the outlook for Germany is strong. Growth within Europe is unbalanced. While Germany s growth was ranked low among the EU- 25, the country s current expansion has helped to move the country towards the center of the rankings, with expectations that this trend will continue. In 2006, Germany s GDP grew by 2.5%, the third highest since Germany s reunification. Nitschke remarked that Germany is now the motor of European economic development. Similar to the German outlook, expectations for the US economy are also promising. Dr. Klier explained that in the 4th quarter of 2006, US GDP increased by 3.5%, which was significantly stronger than expected. Klier also mentioned trends in real estate, consumer spending, and oil prices. Dr. Klier said that while the slow-down in the real estate market is signif- 22 German American Trade Vol. 18 No. 2

23 Regions MIDWEST Tops the Agenda at GACCoM s 2nd Annual Economic Forum icant, he does not feel that it will influence the overall positive developments in the economy. Building on the positive forecast presented in the first panel, the second panel transitioned to a more microeconomic perspective. Speakers represented industries ranging from automakers to printing press manufacturers to automotive suppliers. Each shared their experiences in transatlantic business and the challenges they face in light of the 2007 economic outlook. Moderator David Braun, GAC- CoM chairman and partner at Drinker Biddle Gardner Carton LLP in Chicago, IL asked speakers Frank Dettke, EVP & CFO of Porsche Enterprises Inc. in Lisle, IL, Vincent Lapinski, CEO of MAN Roland Inc. in Westmont, IL, and Frank Mueller, President of Behr America, Inc. in Troy, MI questions specifically related to the economic developments in each of the speaker s industries and markets. Speakers discussed topics from the exchange rate to favorable manufacturing locations to outsourcing. Interestingly, each speaker had a different answer depending on their respective industry and their production sites. While Porsche manufactures entirely in Europe, Behr s products are mostly manufactured in the US with few assembly components imported from Europe, and MAN Roland s entire production is based in Germany. The expectations for 2007 are considerably more promising than those of Positive economic developments in the last year in Germany and especially the last quarter in the US, forecast an even better The year 2007, as unanimously agreed by all speakers, will bring growth for both economies, which will be strongly impacted by transatlantic trade. GACCoM was delighted to have had such a strong turnout for the 2nd Annual Economic Forum. Much of the credit for this goes to our recognizable and knowledgeable speakers, and our generous sponsors. Thank you to Robert Bosch Corporation, Chick International Inc., Daimler- Chrysler Corporation, Ernst & Young LLC, Lufthansa German Airlines, Schmolz + Bickenbach USA Inc., the South Central Indiana Economic Development Group, Wolin Kelter & Rosen, Ltd., and XL Insurance for making this special event possible. After this year s success, GACCoM is already planning for the 3rd Annual Economic Forum in early (from left): Wim Van Acker Roland Berger Consultants, Simone Pohl, Frank Dettke, Wolfgang Drautz (from left to right): Dr. Axel Nitschke, Michael Backfisch, Dr. Thomas Klier German American Trade Vol. 18 No. 2 23

24 Regions WASHINGTON The View from Washington Global Trade and the Office of Foreign Asset Controls Written by Peter Esser, Legal Counsel Office of the Representative of German Industry & Trade For further information, 24 German American Trade Vol. 18 No. 2

25 Regions WASHINGTON Safely negotiating the domestic and international regulatory minefield is a skill that internationally active firms must develop and refine time and again. Trade sanctions, whether imposed unilaterally or multilaterally, are but one, albeit significant, issue on the checklist of matters potentially affecting international transactions. One specialized instrument of U.S. foreign policy is the United States Department of the Treasury s Office of Foreign Asset Controls ( OFAC ). Acting under presidential wartime and national emergency powers, as well as authority granted by specific legislation, OFAC administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, terrorists, international narcotic traffickers, and those engaged in the proliferation of weapons of mass destruction. OFAC acts by imposing controls on transactions and by freezing foreign assets under U.S. jurisdiction. Although certain sanctions are multilateral, others are not, and the sanctions combined with OFAC s actions thus can be a very real source of uncertainty between the U.S. and trade partners and allies. OFAC administers the Treasury s Specially Designated Nationals and Blocked Persons ( SDN ) list, which is essentially a roster of individuals and entities located throughout the world that are blocked pursuant to the various sanctions programs administered by OFAC. SDNs can be front companies, parastatal entities, or individuals determined to be owned or controlled by, or acting for or on behalf of, targeted countries or groups. They also can be specially identified individuals such as terrorists or narcotics traffickers. U.S. persons are prohibited from engaging in any transactions with SDNs, and must block any property in their possession or under their control in which an SDN has an interest. SDNs are designated primarily under the statutory authority of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the Anti-Terrorism and Effective Death Penalty Act and the Foreign Narcotics Kingpin Designation Act. Implementing regulations can be found in Chapter V, Title 31 of the U.S. Code of Federal Regulations. The recent listing of the Iranian state-owned Bank Sepah, its wholly-owned UK subsidiary, and Bank Sepah s Chairman on the SDN list are but the most recent action taken by OFAC. The reasons cited in support of the designation of Bank Sepah as an SDN included providing support and services to designated Iranian proliferation firms. OFAC may eventually provide guidance to firms doing business with both the U.S. and Iran. According to OFAC, an advisory opinion could issue in the near term on this matter, and might provide more information to those businesses which in one way or another engage in dealings which may involve SDNs. Currently, OFAC s website provides partial guidance in terms of noting that All U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, all U.S. incorporated entities and their foreign branches. Thus, it appears that for foreign companies with no meaningful business presence in the U.S., OFAC s actions appear to have little impact. However, foreign companies with a U.S. affiliate or subsidiary are well advised to exercise great caution and to seek additional counsel before engaging in any business matters involving SDNs. The current guidance made available to the public by OFAC, primarily in the form of interpretive opinions posted on the OFAC website, does not offer detailed information which would enable a party to make a well-founded business decision with regard to international planning. Thus, it would be advisable to await the issuance of any advisory opinion which OFAC may produce. A caveat exists in that OFAC may not released all internallygenerated reports for public consumption. Thus, gaining access to certain information may involve the additional step of filing a Freedom of Information Act request. German American Trade Vol. 18 No. 2 25

26 Regions SAN FRANCISCO Thuringian Delegation Solar Conference From left: Dr. Arnold Wulff LEG; Stefan Morbe, Rene Gurka, Dahlia Krausse GACC CA; Dieter Althaus Thuringian Prime Minister; Sabine Zimmermann, Nicholas Wagner GACC CA; and Jürgen Reinholz Thuringian Economics Minister. Photo by Philipp Weitz. Written by Dahlia Krausse, GACC California On January 22, 2007 the German American Chamber of Commerce, California Branch, hosted Prime Minister and Economics Minister of the German Federal State of Thuringia. Thuringia, world-renowned for its success in optical manufacturing and research, was one of the German exhibitors at the world s largest optics and photonics event, Photonics West Photonics West, hosted in San Jose, California, attracted over 1000 exhibitors and 17,000 visitors. Of the 1,000 exhibitors, Germany was predominant in exhibiting 61 booths equating to more than half of the total 120 exhibitors headquartered in Europe. In connection with the Photonics West conference, the GACC California Branch organized an evening reception for the 22 person Thuringian delegation together with LEG (Thuringia s State Development Corporation). The evening was attended by over 160 industry experts, agency and organization representatives, plus city and government officials. Germany California Solar Day 2007 The third solar power conference hosted and organized by the German American Chamber of Commerce California Branch will take place March 13th in San Francisco. The conference is expected to attract over 250 attendees in the Photovoltaic and Solar Thermal Industry, as well as additional attendees from the public utilities, economic development agencies, city council and government sectors. The main purpose of the event is to provide an overview of solar and technological developments in Germany and California and to inform experts in the United States about Germany s leading solar companies, associations, agencies and organizations, such as Conergy AG, KACO Gerätetechnik GmbH, SMA Technologie AG, plus many more. In addition to the conference, both networking receptions and business-tobusiness meetings will be arranged to promote business collaboration and partnerships between German and US companies. This conference is supported by the German Ministry of Economics & Labor (BMWi), the Solar Energy Industries Association (SEIA) and Americans for Solar Power. For more information, go to 26 German American Trade Vol. 18 No. 2

27 FULL PAGE AD Emirates

28 Member Profile Feeding the World By Cheryl Thompson, AGCO 28 German American Trade Vol. 18 No. 2

29 Member Profile AGCO is the third largest farm machinery company worldwide with its headquarters in northeastern Atlanta. Although located in the U.S., AGCO has originally German roots and is managed by a German named Richenhagen. The company got its start in 1990 with the purchase of Deutz Allis Corporation from German-based Kloeckner- Humboldt-Deutz AG. KHD, in turn, had purchased portions of the Allis-Chalmers agricultural equipment business five years earlier. Since that time, AGCO has become a worldwide manufacturer of farm equipment through market growth and strategic acquisitions. Today, AGCO offers a full product line, including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,600 independent dealers and distributors in 140 countries. Among its brands are AGCO, Challenger, Fendt, Massey Ferguson and Sunflower. AGCO provides retail financing through AGCO Finance. There are 13,000 employees worldwide and net sales of 5.4 billion in We are a company brought together by acquisitions, the company s chairman, president and CEO Richenhagen says. We needed access to the whole world and through our acquisitions we got that. We also gained access to different cultures and brands. Some of the brands had 170 years of history. So you have to understand the history of the company and its culture, as well as the country of origin. When you buy a company, the main reason is to give you access to new markets, new customers and new products. You don t want to lose your established people, dealers or customers in the process, though. You have to make sure that one and one does add up to two. Sometimes, it doesn t. AGCO and its new families of companies were doing business as usual until five years ago when the firm was rocked by a plane crash that killed AGCO s president and CEO John Shumejda, 54, and its senior vice president of sales, Ed Swingle, 59. The two men, along with three pilots from Atlanta-based Epps Aviation, were killed Jan. 4, 2002, when the private plane they were flying clipped one of its wings on the ground during takeoff in Birmingham, England. It was a terrible tragedy for the families and the company, says Richenhagen, 54. After the accident, the company s executive chairman and founder Robert J. Ratliff assumed the additional responsibilities of interim president and CEO until a permanent replacement could be found. Richenhagen, who served as group president for CLAAS KgaA mbh, a global manufacturer of agricultural equipment, and then was executive vice president at Forbo International SA, a manufacturing firm specializing in flooring materials headquartered in Switzerland seemed to be the best choice. I actually had worked as a competitor to AGCO, Richenhagen recalls. I knew the company and its markets well and I actually knew a lot of the people there, too. I met with AGCO s management several times. They already knew me and realized that I knew what I was doing. Important role Richenhagen believes that companies like AGCO will play an important part in feeding the burgeoning world population. They are saying there will be 10 billion people on this planet by 2050, he says. What that means is that we have to be very efficient in our farming. The technology will become even more important. AGCO s market consists of two parts: the mega-industrial farmers, whom he refers to as the professional farmers. They need very sophisticated and efficient technology, he explains. And then there are the lifestyle farmers, who may work 10 to 20 acres or may have a horse farm in Alpharetta, Georgia. They have totally different needs, he adds. They need smaller, but still very reliable, tractors or implements. We serve both markets. In the United States, people are German American Trade Vol. 18 No. 2 29

30 Member Profile familiar with the name John Deere, which is the market leader here. But we own 60 percent of the market in Brazil. To cater to the professional farmer, AGCO is building some of the biggest machines ever to hit a cornfield. Under the Challenger brand, AGCO launched the most powerful production wheel tractor in the world this year. The four-wheel-drive tractor has 575 horsepower and is the most advanced tractor in its class. German company Fendt introduced a 365-horsepower tractor that does 40 miles per hour. The Fendt tractor has control systems for smart implements that have electronic sensors and controls from a Variotronic color monitor that provides global positioning system technology. AGCO s Auto-Guide technology combines satellite navigation and global positioning systems (GPS) into a steer-assist feature that guides machines via a predetermined GPS path. The Auto-Guide increases accuracy and efficiency with hands-free, auto-steering capabilities. Technology that provides specific precision agriculture solutions such as satellite-assisted steering, data collection, yield-mapping and other features will help farmers with more comprehensive solutions for precision farming, according to Richenhagen. With AGCO Global Technologies solutions, growers can better control equipment, apply treatments more precisely and economically, manage sensor data, communicate in real time, conduct agronomic analyses and The AGCO Timeline: History of Its Most Recent Successes 1990 AGCO was formed in the management buyout of Deutz Allis from KHD, and began manufacturing and distributing farm equipment under the AGCO Allis and GLEANER brand names AGCO purchased Hesston Corporation, a leading North American brand of hay tools and a 50% participation in the manufacturing joint venture with Case International, known as Hay and Forage Industries (HFI). In mid-year, AGCO purchased the White tractor business from Allied Products. Both acquisitions expanded the AGCO dealer network, while the brand identities were retained AGCO provided an initial public offering of one-half of its stock and became listed on NASDAQ. Subsequently, it became listed on the NYSE under the symbol AG in AGCO purchased the White-New Idea business of planters, hay tools and spreaders as well as the Coldwater, Ohio manufacturing facility. AGCO purchased the North American distribution rights to Massey Ferguson products and 50% of a joint venture established for Agricredit Acceptance Corporation. The Massey Ferguson acquisition expanded the AGCO North American dealer network by over more than 1,000 dealers AGCO purchased the worldwide holdings of Massey Ferguson, ensuring AGCO s global status, and the remaining 50% joint interest in Agricredit Acceptance Corporation. In the same year, AGCO purchased the assets of McConnell Tractors articulated tractor manufacturing business leading to the development of the AGCOSTAR tractor line and the assets of Black Machine, giving AGCO a unique planter frameline AGCO purchased the assets of Tye Company, makers and marketers of Glencoe, Tye, and Farmhand agricultural implements and tillage equipment AGCO acquired the Iochpe-Maxion agricultural equipment company in Brazil, the number one market leader in tractors with the Massey Ferguson brand. AGCO also purchased Deutz Argentina, S.A., the number one market share leader in tractors in Argentina. AGCO purchased Western Combine Corporation and Portage Manufacturing, Inc. in Canada to expand the Massey Ferguson combine business. AGCO also added Rabobank Nederland as its joint venture partner in Agricredit, its finance subsidiary in North America. The Fieldstar precision guidance and positioning system for agricultural equipment launches AGCO made a major acquisition of Fendt GmbH, the leading German tractor business and enhanced its availability to the world s most advanced tractor technology. Fendt is renowned for its technology and international market share leadership. AGCO also acquired Dronningborg Industries, the leader in European precision farming technology. 30 German American Trade Vol. 18 No. 2

31 Member Profile Source: AGCO created a joint venture with Deutz AG to produce engines in Argentina. AGCO also purchased the Spra-Coupe and Willmar product lines, two leaders in the agricultural sprayer market and merged production into one manufacturing plant in Willmar, Minnesota. AGCO adjusted its stock issued to 59,000,000 shares and led the industry in asset rationalization for a cyclical downturn AGCO announces the creation of AGCO Finance, a new and dedicated financing organization. Formed in association with De Lage Landen (DLL), a subsidiary of Rabobank, AGCO Finance's primary goal is to strengthen and enhance AGCO's North American wholesale and retail finance activities AGCO completes purchase of Hay and Forage Industries in Hesston, Kansas, solidifying its planned strategy to achieve efficient manufacturing rationalization by consolidating major operations in North America AGCO acquires Ag-Chem Equipment Co., Inc., a leading manufacturer and distributor of specialized off-road heavy equipment for agricultural and industrial application, giving AGCO the leading position in the self-propelled sprayer market. Valmet changes tractor brand name to Valtra AGCO acquires the assets of Caterpillar Inc.'s agricultural equipment business, primarily the design, assembly and marketing of their Challenger track tractors. In late 2002, AGCO acquired the assets of Sunflower Manufacturing Company Inc., a leading producer of tillage, seeding and specialty harvesting equipment AGCO acquires the Valtra business, a global tractor and offroad engine manufacturer with market leadership positions in the Nordic region of Europe and Latin America. The acquisition includes SISU Diesel, producers of off-road diesel engines The Massey Ferguson 5400SA Series, a new specialty tractor, is equipped with pressurized cabs and air filtration systems. It was introduced by Massey Ferguson to supply clean cab air for the operator. AGCO Global Technologies also announced Auto Guide, a satellite-based steering system for high-horsepower Massey Ferguson tractors. Furthermore, the Challenger MT865B and MT875B were declared the largest tractors ever built by Challenger with the Model MT875B passing the 500 drawbarhorsepower mark, becoming the first tractor in history to do so A new joint venture between the SM Group and AGCO, called AGCO SM, expanded distribution of the Fendt and Valtra tractor brands into Russia and Kazakhstan was subjoined. AGCO said that it would build a new generation of European Hybrid Combines at its Combine Assembly Plant in Randers, Denmark. better protect the environment. Richenhagen also is excited about the trend toward the use of ethanol and other alternative fuels to operate machinery. Environmental awareness and agricultural innovation have merged into a new energy source: bio-diesel. AGCO has developed engines that burn B5 fuel in North America, which is diesel fuel with five percent plant matter, and, its SisuDiesel engines can run up to a B20 blend in Europe. In South America, AGCO machines are running on 100% Ethanol. Currently, AGCO is researching the use of different bio-fuel mixtures, as well as complete plant-matter-based, diesel energy sources for its products. We can run machines on sugar cane, he says. We need to go more into alterative fuels, though. It would be a tremendous boost for the farm business. Tightening the reins With an eye on both international currency and weather, Richenhagen is still trying to run a tighter ship. We are changing directions and focusing on internal growth, he says. We will be spending more money on engineering. Some of our products need to be changed to reflect changes in the market. We want to focus on growth in new markets, such as China, India and Eastern Europe. We need to continue the integration of various companies and systems, as well as management structure and processes. We have to line it up so that we can truly be a global player. German American Trade Vol. 18 No. 2 31

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33 Regulars Economic Indicators 8000 German Trade with the U.S J F M 2006 (Source: U.S. Census Bureau) A M J J A S O N Exports Imports Note: all figures are in millions of U.S. dollars GDP % change to previous quarter 6% 5% Unemployment percentage 4% USA 12% 10% Germany 3% 8% 2% 6% USA 1% Germany 4% J F M A M J J A S O N D 2006 (Sources: U.S. Dept. of Labor: Bureau of Labor Statistics / Federal Statistical Office Germany) Q Q2 Q3 Q4 Q Q2 Q3 (Sources: U.S. Department of Commerce Bureau of Economic Analysis / Federal Statistical Office Germany) Dollar per Euro (Past Trend, Present Value & Future Projection) J F M A M J J A S O N 2005 (Source: Board of Governors of the Federal Reserve System) D J F M A M J J A S O N D J F M A M J German American Trade Vol. 18 No. 2 33

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