The German district of North Rhine Westphalia (NRW) is indeed one of the best places to do business not only in Germany, but perhaps in the entire world. One of the 16 Federal states of Germany, NRW is bang in the center of the market with about 150 million consumers within a mere 500 km radius. It is also the leading German state in terms of GDP (568.9 billion out of the total German share of 2571 billion Euro).And this huge GDP is accounted for by a plethora of industries ranging from chemicals (49.2), mechanical engineering (48.0), metal production and processing to (46.6) food beverages 935.7), automotive (31.8), metal products (30.0) and engineering electronics amongst others (26.3). As a matter of fact, 19 of the 50 top selling companies in Germany are based out of NRW.
A thriving industrial establishment with a legacy to boot does not however mean that NRW is rusting in its laurels. On the contrary, it has drawn out comprehensive plans and has identified as “future industries”, the following that will drive its growth in the years to come: Automotive, Biotechnology, Chemicals, Energy, Environmental technology, Food, Health, Information and communications technology, Innovative materials, Logistics, Mechanical engineering, Media, Microsystems technology and nanotechnology and Plastics.
Another major feather in the NRW cap is the fairs and exhibitions that the state hosts. Some of the most sought after and visited fairs in the world are held in NRW – fairs that bring the buyers and sellers together on the same platform, helping them forging business relationships that test time.
Contrary to popular belief, Germany is not at all an expensive address to work out from. As a matter of fact German tax rates are extremely attractive (29.83%) when compared to its peers – USA (39.62), Japan (39.55), France (34.43) and even Belgium, Italy and Spain. Little wonder then that NRW is Germany’s leading destination for Foreign Direct Investment – in 2010, it attracted 189.8 billion Euros. A number of well known Indian companies too are invested in NRW. Essar, Mahindra, Sona, Ashok Leyland, Bharat Forge, Corus, Suzlon, MBE and Wipro to name a few, have a sizeable presence in NRW.
One of the major attractions of NRW is its excellent connectivity. The state has 2 major international airports as well as 4 airports with European connections. It operates more than 400 direct flights all over the world. Besides, it is also a major air cargo center. NRW also boasts of 2,200 km of expressways – mostly with six lanes, 17,600 km of federal highways and country roads apart from good access to the European expressway system. That’s not the end though. NRW has the highest rail network density in Germany, is an important hub in high-speed rail network with Cologne being one of Europe’s busiest railway junctions.
NRW, over the years has quietly curved out a niche for itself – as the research capital of the world. The research network in NRW is one of the densest in Europe and provides ideal conditions for technology transfers. It has 69 universities and technical colleges, around 50 non-university research facilities, 48 technology centers, 30 technology transfer units – all temples of knowledge where the search for excellence is not a destination, but a way of life.
NRW is also one of the premier destinations for pilgrims in search of mechanical engineering prowess’s and production technologies. The state, with 198,700 employees and around 1,400 mechanical engineering companies, is the biggest industrial employer in the Rhine and Ruhr regions of Germany. In 2011 NRW engineering companies generated sales of EUR 48 billion, of which only 40 % was in Germany. The other characteristic of this segment is the strong mid-market character – approximately 70 % of all companies employ fewer than 100 staff, and 90 % fewer than 250 staff. The beauty being that the same space is shared with the small by big names such as Claas, GEA, Gildemeister and SMS. And to keep the interest focused round the year, Drupa, Interpack, K – plastics trade fair, METAV and METEC, five important trade fairs for mechanical engineering take place in Düsseldorf.
Cold figures make the case for mechanical engineering in NRW even more compelling. 23.1% of German companies in the field are based in NRW which employs about 20.5 % of German employees, contributing about 232.3 % of the total German sales. NRW’s share of total German exports is 18.4 % while it imports 16.9% of Germany’s share.
The most important destinations for NRW exports are China, USA, Russia, France, Netherlands, UK and India (in that order). While it’s most important suppliers are China, Italy, Japan, Netherlands, UK, France and USA.
Ask me a good reason to be in NRW? I’ll give you ten:
- Germany’s Numero Uno Investment Location
- One of Europe’s largest markets
- Gateway to Europe
- World class Research & development
- Highly qualified workforce
- World’s trade fair capital
- Competitive Tax structure
- No security issues
- Excellent properties and Real Estate
- One of Europe’s Richest Cultural landscapes
If you are still not satisfied, I suggest you talk to a representative of NRE Invest. They are some of the most articulate and friendly people I have met in my life. You won’t believe that you are actually talking to a Government official such proactive is their nature. As for their efficiencies, you can rest assured – they are solid state, like the engineering equipments coming out of Germany!
– Chawm Ganguly