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Brexit drives British firms to Germany: Report

The number of British companies in Germany is rising due to Brexit, a new report states. Meanwhile, the southern state of Bavaria is planning to open an office in London in a bid to strengthen links.

Published: 13 May 2019 11:18 CEST
Updated: 13 May 2019 12:34 CEST
Brexit drives British firms to Germany: Report
Frankfurt am Main skyline. Photo: Depositphotos/phillipus

In 2018 more foreign companies than ever before opened up businesses in the Bundesrepublik, according to research by Germany Trade and Invest (GTAI).

The economic development agency of the Ministry of Economic Affairs reported that 2,062 companies launched or expanded in Europe's largest economy last year. That's an increase of 8 percent from the previous year.

SEE ALSO: How Brits in Germany can make the most of the Brexit delay

According to the GTAI, 17 percent of the companies use Germany as a production and research location.

The US holds its position as the top investor country leading the way with 345 investment projects – also a new record. The Americans were followed by Switzerland (229 projects), China (188) and the UK (168).

The report also showed that since the Brexit vote in 2016, the number of British firms established in Germany has risen by 34 percent, with the UK's decision to leave the EU deemed a key factor in the development.

In contrast, the German market seems to have become less desirable for Chinese investors. The number of Chinese companies establishing firms in Germany fell by 33 percent during the same period.

“These figures conclusively demonstrate that Germany is a popular investment location for foreign companies,” said Robert Hermann, CEO of GTAI.  

“It is particularly noteworthy that never before have so many British companies settled in Germany as last year.

“We asked them why and for almost half of the companies – 45 percent – Brexit was one of the reasons.”

As The Local has reported, Frankfurt, Germany's financial hub, has seen a rise in the number of firms relocating there following the Brexit decision.

According to the GTAI, the most popular sectors last year were corporate and financial services, followed by ICT and software, consumer goods, mechanical engineering and parts manufacturing.

“Many investors appreciate the positive environment for establishing a business in Germany,” Hermann added. “The size of the German market and its position within the EU are also powerful arguments.”

SEE ALSO: Opinion: Why Germany struggles to understand the issues at heart of Brexit

Bavaria to open office in London

It came after authorities in the German state of Bavaria revealed they are to open a “large office” in London because the region is eager to “maintain relations between Bavaria and Britain in the future”.

Britain is the fourth largest export market for the southern state, which has a strong car and plane making industry.

State premier Markus Söder said whatever happens with Brexit “we want to send a signal of understanding, togetherness, and of better relations”.

Söder made the comments last Thursday at a banquet held in Munich for Prince Charles and his wife Camilla during their visit to Germany.

The premier also gifted the couple with a pair of baby Lederhosen for their new grandchild, Archie Harrison, son of Prince Harry and Meghan, Duchess of Sussex.

Markus Söder and his wife Karin Baumüller-Söder gift the Lederhosen to Prince Charles and his wife Camilla. Photo: Joerg Koch/Bayerische Staatskanzlei/DPA

In his speech in German, Söder praised the visit of Prince Charles, the heir to the throne, as a very important signal for fostering good relations between Germany and the UK.

But he also stressed that he would “very much like to see the UK stay in the European Union”.

The new deadline for Britain leaving the EU has been set for October 31st, however Prime Minister Theresa May is hoping she can get a withdrawal agreement through parliament before this date.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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