Thought Leadership

Andreas Neumann
Business in Trump America

by Andreas Neumann, Chairman German-American Business Association

In its “starting a business” category The World Bank ranked the US on 8th place (out of 190 countries) in 2019 [it was ranked on 13th place (out of 185 countries) in 2012].

The Workforce remains a vital issue for European subsidiaries in the US: Companies continue to face a lack of skilled workforce (87%). Companies continue to face difficulties in obtaining work visas. Such difficulties have increased from 58 % to 78 % compared to 2018.

Despite some skepticism regarding the state of free trade the vast majority (91%) of European subsidiaries in the US are expecting growth for their own businesses in 2019.

Positive aspects: European  companies cite customer demand, proximity to the customer base and the relative market stability as reasons for their current and planned investment in the US. As part of their continued growth, European companies are taking advantage of measures like the tax reform to spur investments in M&A activities as well as in business diversification.

Over the last years, M&A activities have increased remarkably (compared to incorporation of subsidiaries).

Low data protection level in the US. But California Consumer Privacy Act (CCPA) becomes effective on January 1, 2020 and a national regulation can be expected.

Update your manuals: There is only one American National Standards Institute (ANSI) – and there is no International Organization for Standardization (ISO) and there is and certainly no Deutsches Institut für Normung(DIN). What to do: See you lawyer, refer from a state court to a federal court, and investigate proper delivery of complaint in Europe. Defense strategy: Misuse/abuse of product, alteration of product, and assumption of risk.