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German American Trade Quarterly 1st Quarter 2021 | Vol. 33 | No. 1 | $7.50 Siemens USA: Technology to Transform the Everyday
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E D I T O R I A L C O N T E N T S
2 020 was a challenging year for
all our members and everyone.
The pandemic, political uncertainty
nC OV E R
Siemens USA:
S T O R Y
Technology to Transform the Everyday 4
and disruptions to supply chains
were just some of the difficulties we
nE C O N O M I S T S C O R N E R
had to overcome. But as we turn our
attention to 2021, we see opportuni- Eye on Inflation 12
ties ahead. Our recent German
nS P O T L I G H T S
American Business Outlook (GABO)
survey underlined that neither Confidence in US market remains
COVID-19 nor challenges in bilateral strong among German companies 9
trade and investment flows changed Interview with Oliver Leptien, HELM U.S. 14
the confidence and strong coopera-
tion that characterize the German-
The Bavarian Industry in the US 16
American relationship. The US Interview with Georg Hansajürgens,
remains attractive not only as a of Deutsche Leasing 18
trading partner, but also as an
investment location, and many nSTARTUP SERIES
German companies continue to Peter Riehle, STEP USA alumnus MyPostcard 21
identify closely with the United President & CEO
States through their US subsidiaries. Wittenstein North America nG TA I I N D U S T R Y T A L K
German companies are indicating Chairman, Board of Directors,
GACC Midwest
End-of-life rotors to be disposed of in an
their willingness to invest in the US
by not only expanding and strength- environmentally friendly manner in the US 22
This new year is also one for change
ening existing operations, but also in leadership for our network. After
by establishing new locations, sales nCROSSROADS
two years as the Chairman of the
and service offices, and manufactur- How good intentions can be misinterpreted 24
German American Chambers of
ing facilities. Commerce, I would like to introduce
nMEMBER PROFILES
and welcome Crispin Teufel, CEO of
The rollout of vaccines on both sides Lincare Holdings, Inc., as my Rippleworx:
of the Atlantic makes me hopeful that successor. As the new Chairman of We not only Analyze, we Actionize! 26
the worst of the pandemic will be our organization, I wish him much Indeed:
over soon. The data from GABO success and ask that you support
underlines this optimism for 2021, as From Human-first to Humane Innovation 28
him as much as you have supported
market expectations are positive. me during my tenure.
According to GABO, 92% of the nSKILLS AT WORK
surveyed companies expect growth Yours sincerely, Swoboda Inc. Apprenticeships 30
for their business, exceeding the
expected growth of the US economy. nJ-1 SUCCESS STORIES
And, despite economic uncertainties,
Gregor Ziegler, J1 visitor 32
43% of companies surveyed plan to
increase their workforce this year. Peter Riehle
Many of our member companies here nWHAT'S ON YOUR DESK?
President & CEO Wittenstein North
in the US will do so by joining one of America Catherine T. Malone,
our GACC-managed apprenticeship Chairman, Board of Directors, GACC Director, Skills Initiative, GACC South 33
programs to build sustainable talent Midwest
pipelines for years to come.
C O V E R S T O R Y
Siemens USA:
Technology to Transform the Everyday
By: Barbara Humpton, President and CEO of Siemens USA
B efore I joined Siemens a decade
ago, I wanted to learn more
about the why of our company.
applying technology with purpose.
Would I get to continue addressing
into the company’s mission and
portfolio, the answer to my question
could not have been clearer: Since
the world’s biggest challenges at our founding in Germany in 1847,
I had begun my career in the early Siemens? Siemens has been inventing the
1980s at IBM assigned to projects future. Here was a company that
that were critical to national Looking for answers, I turned to pioneered a transcontinental cable
security. These early experiences Siemens’ annual reports and what I that was foundational to globaliza-
had sparked a passion in me for could find online. And as I delved tion – a company that helped bring
The Houston METRO runs Siemens light rail vehicles on the city’s three light-rail lines, with ridership rates of nearly two million trips per month.
4 German American Trade Q1 2021
C O V E R S T O R Y
electricity to society while creating Once you start looking for it, the United States over the past two
the world’s first electric railway. Siemens technology is everywhere. decades, including to strategically
We commute in cars designed with acquire US software companies. This
I also was drawn into the story of Siemens software, built in factories commitment to leveraging digital
Siemens in America, where we’ve running on Siemens automation, innovation in the US market has
been doing business for more than charged—if they happen to be spurred the reinvention of our
160 years. After making his first electric—by a renewable and company into the largest industrial
business contacts in the United decentralized Siemens smart grid. software provider worldwide – one
States, our founder, Werner von Siemens employees work in smart that supports 90 percent of Fortune
Siemens, himself a game-changing buildings that keep us comfortable 500 industrial companies. It also
inventor and entrepreneur, wrote to and healthy as we work towards makes Siemens uniquely qualified to
his brother that it would be “really carbon neutral operations by 2030. serve customers as they pursue their
a sin” to overlook the American We take trips on Siemens trains and own reinvention. For while the last
market. He was certain that no on planes brought to life using decade was about connecting
other country had greater market Siemens technology. And we rely on consumers, this is the moment for
potential. lifesaving drugs sped to market industry, infrastructure, and
thanks to Siemens innovations. mobility – all growth markets that
Today, what began will rely on Siemens to help them
as just a few scattered Now Siemens is entering a new converge the physical and virtual
chapter under our new global CEO, worlds of production and opera-
orders has grown into Roland Busch. We’ve executed the tions.
biggest structural realignment of
Siemens’ largest market our company in its history. We’ve This speaks not only to the strength
worldwide, generating turned a conglomerate into three of our business but how I think of
focused companies, Siemens AG, Siemens as a national asset. Siemens
$23 billion in annual Siemens Healthineers, and Siemens is supporting the vital industries
Energy, that are ready to address the and critical infrastructure forming
revenue in 2020. global megatrends grounding our the backbone of America’s economy.
Siemens employs company strategy – climate change, Our company is driven to build
urbanization, an aging global technology with purpose. We are
50,000 employees, population, an increasingly global transforming the everyday, for
works with more than supply chain, and the digital everyone – from more agile and
transformation impacting all aspects productive factories, to more
24,000 US suppliers of society. intelligent and resilient buildings
and power systems, to more reliable
and serves customers And our US market is integral and and sustainable transportation.
in all 50 states and indeed a driving force in this new
chapter and the company’s future. This is what our company stands
Puerto Rico. Siemens has invested $40 billion in for, and what has guided us amid an
German American Trade Q1 2021 5
C O V E R S T O R Y
unprecedented and unexpected with this foundation in place, we ahead isn’t a return to the way
healthcare, economic and societal then went to work adapting our core things were. Rather, the shock of a
crisis. capabilities to serve the needs of the global pandemic has only acceler-
nation – from helping the U.S. Army ated the reshaping and rebuilding of
Disruption fueling Corps of Engineers build a 110-bed the markets we serve. As a new
innovation temporary medical facility in normal emerges, we are seeing an
Our response to the global pandemic Westchester County, New York in emphasis on processes that are more
began by asking ourselves a simple less than three weeks, to creating a digital, flexible, and resilient.
question: What can we do? digital twin of a ventilator for
Medtronic so manufactures could Prior to the pandemic Siemens’
More than half of our employees license and produce this crucial Real-Time Locating Systems (RTLS)
transitioned to remote work practi- medical device at scale to meet were mainly used for tracking assets
cally overnight. Our environmental, increased demand. throughout the manufacturing
health and safety teams acted quick- environment. However, when the
ly to protect manufacturing and This crisis has been a tremendous pandemic hit, manufacturers had to
field service employees to maintain stress test for every aspect of the find a way to keep employees safe,
the continuity of our business. And global economy. Yet, what lies adhering to physical distancing and
Siemens supports the National Center for Civil and Human Rights in Atlanta, Georgia with air purification and thermal imaging technologies.
6 German American Trade Q1 2021
C O V E R S T O R Y
contact tracing guidelines, while comes to smarter infrastructure. To Sacramento, California where we
continuing essential production create safer indoor spaces in produce some of the nation's most
activities. response to the pandemic, Siemens energy-efficient passenger and
has been deploying building light-rail trains, an investment in
This is when Siemens began looking technologies in new ways to US production that also positions
for a way to adapt this technology performantly improve the health Siemens to contribute to the Biden
to keep our employees and our and safety of indoor environments. Administration’s vision to reinvest
customers’ employees safe. We Schools, senior care and healthcare in passenger rail.
repurposed the RTLS technology to facilities, even cultural institutions,
create a wearable solution combined are now implementing air purifica- Additionally, mayors have made
with software to track human tion, thermal imaging, UV lighting clear that electrifying transportation
interactions in the workplace. and an array of HVAC technologies as a way to reduce emissions and
Programming social distance to support reopening plans. These improve air quality will play a
guidelines into the system, we steps forward are also driving critical and immediate role in
invented a highly accurate, real- energy efficiency gains while creating jobs and driving economic
time contact tracing and physical making the steps towards a smart recovery. Sixty percent of leaders
distancing solution. building more tangible for building who participated in our U.S.
owners and managers. Conference of Mayors Survey with
Anonymized badges and sensors the Harris Poll indicated that electric
track employees in the workspace in
Similarly, when it comes mobility would play a crucial role in
real-time. As they move throughout revitalizing their cities.
the facility, workers are alerted to mobility, Siemens
when they get too close to others And, in Wendell, North Carolina,
for too long. The RTLS then tracks Mobility is helping transit Siemens completes the other piece
and stores that data for several days agencies adapt to low of the transportation puzzle – one
so that if anyone does happen to get that’s foundational to decarbonizing
sick, the necessary data can be ridership and using US infrastructure: manufacturing
deanonymized so that employees the EV charging equipment that will
who came into close contact with
downtime to enhance power electric vehicles for our
the infected employee are notified to passenger safety by families, fleets for our nation’s
quarantine. Management at our supply chain, and the bus routes
Houston facility have credited the providing the technology connecting people to opportunities
technology for maintaining health for contactless payment and vital services across our
and safety while keeping the plant communities.
up and running. At the same time, and assisting passengers
the process of implementing a new Building a more
software solution is making it easier
to maintain social resilient future
for manufacturing teams to envision distance. My optimistic outlook during the
a connected factory floor. A pandemic has been that moments of
customer now deploying the The 35 transit agencies we support disruptions create the greatest
technology reports turning to it as a nationwide also are envisioning opportunity to shape the future we
win-win, both for manufacturing how travelers can return to future want. It’s in times like these when
and for digital transformation. trips that are faster, safer and more we question how things work and
sustainable. It's from our solar-pow- look for a better way forward. And
We see similar momentum when it ered manufacturing plant in as we embrace this idea and model
German American Trade Q1 2021 7
C O V E R S T O R Y
adaptation for customers, four – ideally before even they know.
strategic priorities will guide our We’ve been thinking about this in
My optimistic outlook
ambition to be the leading technol- the context of national response. during the pandemic has
ogy company for the industries we When the pandemic struck, leaders
serve. turned to a physical stockpile of been that moments of
emergency items and had to confront
First, technology with pur- supply shortages and distribution disruptions create the
pose. We are helping customers challenges. Well, at the beginning of
greatest opportunity to
solve concrete problems while the pandemic, when Medtronic asked
becoming more sustainable and Siemens to help create a digital twin shape the future we
more efficient in the process. For of their ventilator, we captured the
example, Comfy, our cloud-based design in a digital set of plans, want. It’s in times like
platform for managing buildings, is specifications and instructions. This
an innovative, secure solution to then enabled other manufacturers to
these when we question
return to work faster and safer. license that intellectual property and how things work and
participate in producing what the na-
Second, empowerment. Our tion needed at scale. look for a better way
employees, customers and partners
should feel empowered to use our This taught us a valuable lesson forward.
technology, while our own culture about how to reinvent national
must encourage collaboration, risk response. What if the Siemens
taking and big ideas. When the San software we used to support
Antonio City government was Medtronic – tools used by more
inundated by housing assistance than 140,000 companies globally –
requests during the pandemic, our could also be leveraged to create a
low-code platform, Mendix, was digital stockpile, or a strategic
used to quickly develop an app to digital twin reserve? Imagine a
digitize processes and meet demand. continually updated library of
digital replicas of everything from
Third, a growth mindset. respirators to vaccines and masks,
Curiosity and initiative are what along with the digital blueprints of
drive us. What you know is less how to manufacture these items,
important than your willingness to combined with an agile, flexible
learn new things. We invest $37 industrial base.
million in continuing education for
employees. We also grant billions of We are now working to advance
dollars' worth of Siemens hardware this from concept to reality, and
and software to schools, colleges I believe we can. We have tools,
and universities to spark an interest after all, that expand what’s
in STEM and in pursuing the humanly possible. We have people
technical fields that matter to our applying these tools with inspiring
customers. purpose and who believe in our
mission of transforming the every-
Finally, the most important day. And, as it began in Germany
Contact Information:
priority of all is customer 174 years ago, Siemens will always
impact. We want to know what be at our very best when tasked Siemens USA
customers need as early as possible with inventing the future. >> new.siemens.com/us
8 German American Trade Q1 2021
S P O T L I G H T S
Confidence in US market
remains strong among
German companies:
82 percent plan investments in 2021
By James Freeman, GACC
G erman companies continue to
remain overwhelmingly
optimistic about their business
survey results on January 28. Andreas
Fibig Chairman & CEO of Interna-
tional Flavors & Fragrances (IFF)
Deutsche Bank in New York provided
insights on the US economy. Com-
menting on the economic impact of
prospects in the US, expecting welcomed the guests and acknowl- the pandemic, Luzzetti said, “The
further growth and robust profit edged the GACC sponsors whose backdrop is that this is a very unusual
margins. All this despite the support make the event so successful. recession and a very unusual recov-
daunting challenge of the COVID-19 The survey results were tabulated by ery.” Despite significant economic
pandemic. That’s the key finding of KPMG Germany and presented to our setbacks, he predicts growth in 2021
this year's German American GABO audience by Andreas Glunz, boosted by fiscal stimulus and the
Business Outlook (GABO). Managing Partner International vaccine rollout. “In line with our
Business, KPMG Germany. recently published view, inflation
More than 200 GACC members and should moderate after a mid-year
other stakeholders in the German- Prior to Glunz's presentation, jump, but the magnitude of the latest
American business community logged Matthew Luzzetti Chief US Economist fiscal package has skewed inflation
on for our virtual presentation of the and Head of US Economic Research at risks more clearly to the upside.”
German American Trade Q1 2021 9
S P O T L I G H T S
The program included a panel 90% of compa-
discussion on the implications of
the survey results. The panel was nies surveyed
comprised of leaders in the stated they
German-American business
community: generated
Antonis Papadourakis, profits after
CEO at Lanxess Corporation,
Peter Riehle, taxes in 2020
President and CEO
of WITTENSTEIN holding that our business in the service
Corp. and entertainment industries will
Crispin Teufel, pick up this year. Meanwhile,
Chief Executive Officer we’ve experienced tremendous
at Lincare Holdings, Inc. growth and opportunities in our
Katrin Zimmermann, food processing and packaging
Managing Director, The sectors as well as government
Americas, TLGG moderated spending services.”
the panel.
As the the leading provider of
Pete Riehle of WITTENSTEIN respiratory solutions for people in
and Crispin Teufel of Lincare their homes, Lincare Holdings did
Holdings shared how their quite well in the 2020 pandemic
companies are faring during environment. Its products allow
the pandemic: “Supply chains people to be treated for covid-
have definitely been a related respiratory illness at home,
challenge for us and for our thus freeing up much needed
customers,” said Riehle. hospital beds. Crispin Teufel said
With his company in about that Lincare's success is due in
35 different industries in the US, great part to the company's
“In line with our he said business successes and respiratory products. On the flip
declines varied. “We’re hoping side, the company’s business
recently published view, related to physician practices, sleep
labs and elective surgeries has not
inflation should moderate been as robust. Teufel pointed out
after a mid-year jump, but the that the pandemic has led Lincare
to make great strides in digitiza-
magnitude of the latest fiscal tion. “We’re definitely going to
package has skewed inflation continue on that path even when
the pandemic is behind us, and as
risks more clearly to the upside.” a result we’ll keep growing as a
company,” he stressed.
Matthew Luzzetti Chief
US Economist and Another company represented on
our GABO panel is Lanxess, a
Head of US Economic leading company in specialty
Research at Deutsche chemicals. “We did very well in
2020 compared to our peers. It
Bank in New York Matthew Luzzetti was our best 4th quarter in eight
10 German American Trade Q1 2021S P O T L I G H T S
years,” said Antonis Papadourakis. Despite uncertain business conditions,
“We remain very optimistic for 2021,
and plan to continue investing in the 82% of the surveyed companies are still
US.” A key element in the com- planning investments in the US market
pany’s success has been the develop-
ment of CheMondis, a new global Following the GABO January 28 The GACC Midwest GABO
marketplace for chemical products. event, GABO forums were organized event received great feedback
“We figured that there would be a lot by GACC Midwest, GACC Philadelphia from participants – overall, they
of value in creating this B2B and GACC Pittsburgh. The GACC NY enjoyed the forum and found it
platform for chemicals,” Papadoura- also partnered with the German beneficial for their businesses.
kis, explained. American Business Council (GABC) to Many people also commented
present the survey results to a Boston that they appreciated Frank Sporto-
One of the biggest concerns German audience, with Consul General Nicole lari’s engaging insight as president
companies in the US have according Menzenbach of the German Consulate of AmCham.
to the GABO survey is the persistent General Boston among the many
shortage of skilled workers. To help noteworthy guests. It looks like 2021 will be another
mitigate this problem, companies like dramatic year ushered in by a
WITTENSTEIN and Lanxess have More than 140 people logged on to much needed wave of optimism. It
incorporated highly successful the GABO forum presented by the will be interesting to see how
apprenticeship programs, facilitated in GACC Midwest, featuring panel German companies in the US
large part by the GACCs. All of our speakers: respond to the challenges and
GABO forum panelists emphasized Peter Riehle, Chairman of the Board opportunities that await them.
how valuable apprenticeship pro- of Directors of GACC Midwest and
grams are to their businesses and how President & CEO of WITTENSTEIN
To download the full
strongly committed they are to them. North America
GABO 2021 report,
Frank Sportolari, President of
visit any of our regional
The GABO report received extensive American Chamber of Commerce in GACC websites:
media coverage in widely respected Germany (AMCham) and President
German outlets such as Handelsblatt, of UPS Germany, Austria and >> www.gaccmidest.org
Börsen-Zeitung,dpa/AFX-Line und WZ Switzerland >> www.gaccny.com
Westdeutsche Zeitung Düsseldorf Mark Tomkins, President & CEO of >> www.gaccsouth.com
among others. GACC Midwest
Top economic challenges for German companies in the US in 2021
Source: German American Business Outlook 2021, KPMG in Germany and the German American Chambers of Commerce
German American Trade Q1 2021 11E C O N O M I S T ’ S C O R N E R
Eye on Inflation
By Clarissa Dann, Deutsche Bank Corporate Bank
After 30 years of
W ith the Georgia Senate
elections having given the
forecast, based on the initial
US$1trn fiscal package? “Consider-
low inflation, could Biden administration more scope to ing the net stimulus relative to our
get its proposals through both the baseline, a $1.9tn fiscal stimulus
this benign era be House of Representatives and the package could, in theory, add about
Senate; Treasury Secretary Janet two percentage points to our current
under threat as huge Yellen’s advice to “go big” with an growth forecast of 6.3% (Q4/Q4) and
initial US$1.9trn proposal has, notes push the unemployment rate to 4%
spending stimulus Deutsche Bank Research US econo- or below by year-end, they note in
mists, “introduced potential for their 5 February 2021 report, Parsing
programmes roll out? meaningful upside risk to our the potential boost from the Biden
And how is monetary already well-above consensus fiscal plan.
economic forecast for this year”.
policy responding? Boosting recovery?
If the stimulus comes in at
US$1.3trn in the event of Republican
Deutsche Bank’s So what would be the incremental resistance to the “big” package, the
uplift of this additional US$0.9trn GDP uplift reduces to 0.75% and
Clarissa Dann reports. on the team’s original growth unemployment looks set to hit
around 4.3%
Figure 1 Biden’s fiscal proposal
Provision Another factor considered in the
Deficit Impact ($bn)
report is the degree to which
$1,400 stimulus checks $465 observance of social distancing
reduces the ability of households
Aid to state and local governments $350 and businesses “to spend on goods
Additional unemployment benefits and services in particular sectors”
$350
and prompts “higher precautionary
Vaccination funding $160 savings motives”.
Fund school reopening and increase funding to Inflation and monetary
$170
schools and colleges
policy
EITC expansion $120 In our May 2020 flow article,
Provide rental and small landlord support Covid-19 and inflation, we exam-
$30
ined whether or not such stimulus
Provide support to childcare providers $25 packages could lead to hyperinfla-
tion and whether precautionary
Other policy changes $200 savings habits could bring about
deflation.1 “As individuals worry
Total Reported Cost $1.9 trillion
about what might be around the
Source: CRFB, Deutsche Bank
12 German American Trade Q1 2021E C O N O M I S T ’ S C O R N E R
“The need to reduce large debt burdens
will bring about the return of inflation”
Oliver Harvey, Strategist,
Deutsche Bank Research
corner, they don’t spend,” we noted. objective is being closely managed.
Deutsche Bank Macro Strategist They quote Chair Powell’s observation
Oliver Harvey makes the point that that “well-anchored inflation expec-
the combination of unprecedented tations are critical for giving the Fed
government stimulus packages, the latitude to support employment
retreating globalisation, the increase when necessary without destabilising
in bargaining power of certain sectors inflation. But if inflation expectations
of the labour market as well as the fall below our 2% objective, interest
need to reduce large debt burdens will rates would decline in tandem. In
bring about the return of inflation. turn, we would have less scope to cut
expectations and track their
Figure 2: Index of common inflation expectations common movement (see Figure 2).
It can be seen that “evidence that
expectations slipped in the wake
of the 2014/15 oil price collapse”,
and how expectations recovered
once the Fed announced its
change to the way it would
conduct monetary policy and the
increased stimulus packages were
put on the table.
While the spectre of hyperinflation
is not lying in wait just yet,
Luzzetti, Weidner and Ryan note
in a separate report that “going
big” on fiscal stimulus has shifted
Source: Ahn and Fulton (2020), Deutsche Bank
the balance of risks around
It is therefore no surprise that interest rates to boost employment inflation more clearly to the
managing inflation and inflation during an economic downturn, upside (see Healthcare tailwind
expectations have, according to further diminishing our capacity to presents upside risk to Fed’s
Deutsche Bank economists Matthew stablise the economy through cutting near-term inflation forecasts).
Luzzetti, Justin Weidner and Brett interest rates.”
Ryan “taken on increased importance
at the Fed in determining monetary Using methodology developed by Clarissa Dann
Editorial Director of Marketing,
policy”. In their 17 February report, Federal Reserve Board researchers,
Deutsche Bank Corporate Bank
Monitoring inflation expectations, Luzzetti, Weidner and Ryan created
they highlight recent comments from an index to synthesize many com-
the Federal Reserve that the stated 2% monly cited measures of inflation
1. https://cib.db.com/insights-and-initiatives/flow/macro-and-markets/covid-19-and-inflation.htm
German American Trade Q1 2021 13S P O T L I G H T S
HELM
Five Questions for Oliver Leptien,
President & CEO for HELM U.S.
GAT: HELM is one of the many have access to supply sources either
Oliver Leptien
German hidden champions. Can you through long-term offtake agree-
tell us more about what HELM does? ments and/or domestic and global
access. As 2021 will likely encompass
Oliver Leptien (OL): We are a both scenarios, I feel that being a
Hamburg-based, family-owned “boutique service provider” with
company that began over 120 years highly customized solutions shows
ago and have had a presence in the that HELM is well-positioned for the
U.S. for more than 50 years. We are a future. Even though we have been in
multifunctional distribution company the USA for more than 50 years,
specialized in chemicals, crop there is a tremendous opportunity for
protection, active pharmaceutical domestic growth, including potential
ingredients, pharmaceuticals, and acquisitions.
fertilizers. Furthermore, we provide a
wide range of services to our GAT: What do you feel is the
business partners, including market- biggest strength of your company
ing, sales, supply chain management, right now? Oliver Leptien is President & CEO for
logistics, and financial services. HELM U.S. Corporation in Houston,
OL: Here in the U.S., our capability Texas. In his 30 years in chemical
Today, HELM is one of the largest to continuously develop new ways of distribution, he overlooked regional
independent chemicals marketing value creation for our partners that and global businesses as well as vari-
enterprises worldwide. With more are significantly different from ous industry portfolios ranging from
than 100 subsidiaries, sales offices, traditional distribution models is a base chemical and petrochemical
and engagements in over 30 coun- major strength. This ability gains commodities to chemical specialties,
tries, HELM generates revenues of additional importance as we are including food, pharma, and cos-
marketing a growing number and metic raw materials. One focus point
around $6 billion per year.
volumes of renewable chemicals. throughout his career has been the
development of internal entities and
GAT: What is the current economic Next year, we expect to generate
organizations towards sustainable
outlook for 2021 for HELM U.S.? nearly 20-25% of our revenue with
success. His professional passion is
renewable chemicals.
the development of high-performance
OL: Despite the ongoing challenges, teams and environments.
we are optimistic when looking into Still, the biggest strength in the U.S.
2021. Our business models are is our team. They are innovative and
increasingly intriguing to the U.S. creative, which builds confidence GAT: What was the path you took
chemical industry. In oversupplied with our partners. Our people are the to get to where you are today?
markets, we often guarantee sales driving force that has allowed us to
outlets combined with financially triple our sales volumes within the OL: The answer is simple: A fully
attractive tools for significant past three years, including a COVID- detailed life plan with all needed
production volume to producers. driven 2020. I am very grateful to steps and sound execution. Well, that
For high-demand products, we often work with such an outstanding team. is not exactly what happened.
14 German American Trade Q1 2021S P O T L I G H T S
Life taught me early on that having happens to you while you're busy
Contact Information:
objectives but staying flexible and making other plans" (John Lennon).
going the extra mile is a good idea. 11700 Katy Freeway
When I was 24, I had the opportunity GAT: What are your interests Energy Tower - Suite 600
to work in Mexico City. At the time, outside of work? Houston, TX 77079, USA
my main competitor was HELM de Phone: +1 (281) 6230100
Mexico. If someone had told me, that OL: I appreciate deep and meaning- Email: >> info@helmus.com
about 25 years later I would be ful conversations with friends and >> www.HelmUS.com
overlooking HELM's U.S. Chemicals sometimes even strangers. Especially >> www.HelmAG.com
and Pharmaceuticals Business, I with people with differing opinions.
would have laughed. That said, I experienced quite some disrupted due to COVID, so we both
challenges in the past year due to look forward to being able to explore
Overall, my path is a mix of a COVID. Personal encounters have again in the future. One positive side
genuine interest in people, keeping decreased significantly and can only of having to stay in is that we have
my sense of humor, and choosing to poorly be substituted via video calls. I developed what, at least the two of us
look on the bright side. Combining have always enjoyed travel. Even would consider, pretty decent cooking
those with not taking myself too though my job has allowed me to see skills during 2020. Fortunately, we
seriously and focusing on good many places in the world over the both like getting out into nature for
results turned out to be a good recipe years, I deeply enjoy traveling with extended walks to counter the newly
for me. In the end, “Life is what my wife. This has been significantly achieved cooking skills a bit.
German American Trade Q1 2021 15S P O T L I G H T S
The Bavarian Industry
in the United States
In 2020, the trade volume between the US and
Bavaria was nearly 28 billion Euros. This makes the USA
Bavaria's second largest trading partner after China.
Economic Impact of Bavaria's Economy Creates details: every euro of sales revenue
Bavarian Business and Value and Employment generated by Bavarian business and
Industry in the USA in the United States industry in the US generates an
Trade between the United States and Bavarian companies provide high additional 1.45 Euros in sales
Bavaria is not only strong but is by levels of value creation, production revenue. Bavarian companies add to
far the country with the most direct and employment in the United the prosperity in the USA: for every
investments in the US according to States. They provide more than euro of value added by the Bavarian
the current vbw study: The Economic 576,000 jobs and contribute more industry in the US another 2.28
Impact of Bavarian Business and than 85 billion Euros to the total Euros are generated by US compa-
Industry in the USA. In total, these gross value added in the US That is nies. Bavarian companies are a
amount to 71 billion Euros. This is half a percent of the total value job-creation engine in the USA: each
not much less than the total direct added in the US. job created at a Bavarian company in
investments of Bavarian companies the US secures 2.47 additional jobs
in all member states of the EU. The The economic impact study contains nationwide specifically in employ-
total value here is 83 billion Euros. a whole range of other important ment-intensive sectors that purchase
“Our friendship with
the USA is unshakeable.
Now it is a matter of
consolidating and further
expanding it “ said
bayme vbm vbw
CEO Bertram
Brossardt on
January 11th, 2021
at the online conference
of the vbw on the
US election: 'New
President, new Politics'.
16 German American Trade Q1 2021S P O T L I G H T S
goods and services which help have maintained a liaison office in decision makers and think tanks.
accelerate the economy. New York. This underlines the The US Liaison Office coordinates
positive economic relationship the political exchange of opinions
Multilateralism and between the State of Bavaria and the and experiences for the vbw and its
Transatlantic Partnership United States fostering and furthering member associations.
The Bavarian industry associates Joe collaboration.
Biden’s presidency with the hope of
encouraging the USA towards After successful 10 years, Mrs.
strengthening the World Trade Dagmar Cassan, Executive Director
Organization (WTO) fostering Emeritus is leaving the US Liaison
multilateralism and a revitalization Office in New York. Her successor as
of the transatlantic partnership. of October 2020, the newly appointed
“What we need are talks with the director is Christoph Kolle.
will to reach agreement and coopera- Contact Information:
tion. This is particularly true of The US Liaison Office in New York
conflict issues such as the subsidy works as the interface of economic
dispute over the aircraft manufactur- activities and political concerns for
ers Boing and Airbus, the steel and the member companies from Bavaria
aluminum tariffs, as well as for the in the USA. US companies wishing to
Nord Stream 2 gas pipeline and the invest in Bavaria can also receive
transatlantic dispute over the advice. The services for members
taxation of the tech industry,” include the support of market
says CEO Bertram Brossardt. The development, access to government
vbw relies on a goal-oriented dialog and administration, regional econom-
with the USA. ic development as well as banks and
private equity firms. The office is Christoph Kolle
bayme vbm vbw US Liaison closely integrated by having an Director
Office Under New Manage- extensive network of companies, bayme vbm vbw US Liaison Office
ment in New Location business leaders, international
The Chrysler Building
Since 2010 the Bavarian associations financial service providers, political
405 Lexington Avenue, 37th Fl.
New York, NY 10174
Employment effects of Bavarian business in the USA, in persons P. 646 .237 .0410
700,000
M. 917 .216 .9569
600,000
>> christoph.kolle@vbw.com
>> www.vbw-bayern.de/english
500,000 143,878
>> www.baymevbm.de/english
400,000
US Impact Study 2020
300,000 266,334
576,211 If you would like to learn more about
200,000 the October 2020 US Impact Study,
100,000
please find the link here:
166,000
0
>> www.vbw-bayern.de/vbw/
direct indirect induced total ServiceCenter/Au%C3%9
employment employment employment employment Fenwirtschaft/International-
isierung-und-Export/
Source: BEA (2020); OECD AMNE Database (2020); own caculations of TwinEconomics (2020) Impact-bavarian-businesses-USA.jsp
German American Trade Q1 2021 17S P O T L I G H T S
Alternative financing
solutions in challenging times
An Interview with Georg Hansjürgens,
Member of the Board of Deutsche Leasing
GAT: What is the current situation year. If you just look at the US,
Georg Hansjürgens
for German small and medium-sized German exports have even dropped
enterprises (SMEs) who are invest- by 12.5 percent compared to 2019.
ing or exporting internationally? However, on a German and European
level, countries have reacted quickly
Georg Hansjürgens (GH): It is to the crisis with national and
turbulent. Due to the corona pandem- supranational aid programmes, which
ic, the situation is unstable, and it is businesses are making use of. The
difficult to make clear predictions. A question remains how long SMEs can
lack of sales markets, interrupted pull through. As the number of
supply chains, and fewer new orders infections are still high and many
have resulted in serious slumps in countries are enduring another
exports. In 2020, according to the lockdown (as of February 2021), SMEs
Federal Statistical Office, German must brace themselves to keep their
exports worldwide shrank by 9.3 business going while still investing to
ensure their companies future. Georg Hansjürgens is a member of the
percent in comparison to the previous
Board of Deutsche Leasing and since
2020 responsible for International
Business. Previously, he held various
management and board positions in
foreign companies of the Deutsche
Leasing Group.
GAT: How can SMEs still invest?
What are the current financing
trends?
GH: Times of disruption always
come with new opportunities. Now
more than ever, there is a chance for
SMEs to take a closer look at their
financial planning. A waterproof
financing plan consists of a mixture
of financing tools tailored to the
company’s liquidity situation.
Companies that combine solid
18 German American Trade Q1 2021S P O T L I G H T S
business development with their using the object against paying a fee
financing planning will weather the without touching your credit line. Quick Facts
storm. Three possible alternatives to Sale-and-lease-back as well as Offices in Chicago, Atlanta
a classic loan which preserve factoring are favourable solutions to and Toronto
liquidity are finance lease, sale-and- raise hidden reserves and strengthen More than 30 local employees
lease-back, and factoring. Addition- the liquidity of a company, by either (Risk, Sales, Operations)
ally, sales financing is generally selling new or used capital goods.
German and English
becoming more attractive. Sales financing, or rather, sales
speaking experts
solutions based on export finance
GAT: What are the benefits of business are also very popular, as they Possibility to provide Off-balance
these finance solutions? can be covered by the national Export solutions in accordance with
US-GAAP and HGB
Credit Agency (ECA), i.e. a state
GH: Finance lease generally is an guarantee for sales finance solutions. Financial products:
attractive option to invest in all kinds Risks, as the country risk or the Finance Lease
of goods such as new machines, customer creditworthiness, are usually Loan
vehicles, hard- or software, by just covered by 95 percent. Operate Lease
German American Trade Q1 2021 19S P O T L I G H T S
GAT: What lies beyond are accelerating. To keep pace,
Key Facts about Deutsche Leas-
the horizon? How does the SMEs have to innovate and ing:
“new normal” look like? invest. The crisis acts like a
Deutsche Leasing is the leading solutions-
burning glass on corporate
oriented asset finance partner for German
GH: After all, the consequences strategy. Those who reflect
medium-sized companies and offers a wide
of the COVID-19 pandemic the situation well and range of investment-related finance solu-
also show one thing: cost sustainably will emerge from tions (asset finance) and other complemen-
pressure for companies is increas- it stronger. As a result, there tary services (asset services).
ing, while at the same time can and will be no return to the
Established in Germany in 1962 as a
market and technology upheavals “old normal".
manufacturer-independent leasing com-
pany, Deutsche Leasing Group (DL) joined
the “Sparkassen-Finanzgruppe” (Savings
Banks Finance Group) in 1990 and quickly
became its centre of competence for leasing
and factoring.
Contact Information:
Deutsche Leasing USA was established in
Deutsche Leasing AG
2007, offering highly flexible and tailor-made
Frölingstraße 15 - 31
61352 Bad Homburg v. d. Höhe solutions to the US subsidiaries of German
customers in North America. Over the past
+49 6172 88-00
years, DL USA has supported more than 150
>> www.deutsche-leasing.com/en manufacturers—including start-ups as well as
>> www.deutsche-leasing.com/en/ established companies—to obtain the funds
solutions/international-financing/ needed for their investments and strengthen
german-companies-in-the-us their credit history.
20 German American Trade Q1 2021S T A R T U P S E R I E S
STEP USA alumnus
MyPostcard among Deloitte’s
Technology Fast 50 in 2020
By Andrea Diewald, GACC
M yPostcard clinched a Deloitte
Technology Fast 50 Award,
ranking 28 based on the percentage
market leader in the postcard app
sector. MyPostcard brings the good
old postcard into the digital age.
of sales growth over the fiscal years
(2016-2019). MyPostcard achieved Marco Hülsmann, COO and CTO
growth of 267,48 percent during that of MyPostcard, considers the
period, making it one of the 50 turnover growth rate of 267,48
fastest growing technology compa- percent over the last four years to be
nies in Germany. particularly positive. “One of our
particular strengths has always been
The MyPostcard app allows its users our clear focus on technology.
to design and send personalized However, the last year in particular
greetings featuring their own photos has shown us that innovation and class team are the reason why we
as real printed postcards. MyPostcard flexibility are important attributes were able to further expand our
takes care of printing and interna- for scalability. That and our first- market leadership,”says Hülsmann.
tional delivery. With three million
downloads, the Berlin-based company About MyPostcard “The winners of the Deloitte Technol-
is now the most successful and, with The postcard of tomorrow: MyPost- ogy Fast 50 show how innovation
a rating of 4.6 stars, the most popular card is Germany’s most successful and entrepreneurial success can be
postcard app, making it the German postcard app, letting customers send combined through their products and
their own photos as real printed services,” explains Dr. Andreas
About STEP USA postcards. The app is currently avail- Gentner, Partner and Head of
able in ten languages and is home Technology, Media & Telecommuni-
STEP USA is a 5-day startup boot
to the world’s largest collection of cations EMEA at Deloitte.
camp launched and organized by the
postcards for sale with more than “I wish our participants and award
German American Chamber of Com-
50,000 designs available. With the winners all the best for their entre-
merce New York (GACC NY). A highly
help of an international network of preneurial future. Their success
successful program, it focuses on fa-
printing houses, MyPostcard takes makes the future look bright for
cilitating U.S. market access for young
care of printing and delivering the Germany as a tech location.”
innovative companies and takes place
personalized postcards. Founder and
four times a year. It also exists in a
virtual format. STEP USA prides itself
CEO is Oliver Kray, a designer and The MyPostcard app
serial entrepreneur. The company
on having created a network of more
is headquartered in Berlin with an allows its users to design
than 300 STEP USA alumni, more than
additional office in New York and cur-
60 U.S. incorporations, and 35 invest-
rently employs 30 staff. It is ranked
and send personalized
ment rounds. It is tailored to the
needs of startups who intent to scale
among the top 1000 fastest growing greetings featuring their
companies in Europe according to the
their business internationally.
Financial Times, even achieving place own photos as real
>> www.stepusa.io 19 in the e-commerce sector..
printed postcards.
German American Trade Q1 2021 21G T A I I N D U S T R Y T A L K
End-of-life rotors to be disposed
of in an environmentally
friendly manner in the US
Article by Ullrich Umann, Germany Trade and Invest (GTAI)
Translation from German by Sandy Jones, GACC
Rotor blades from amortized wind turbines
contain valuable raw materials. German waste
management companies will encounter a growing
US market in this business segment in 2021.
I n the US, the first wind turbines
were installed in the 1970s right
after the oil crisis led to temporary
have been looking for ways to keep
tens of thousands of rotor blades
whose maximum operating life has
shortages in energy supply. Since expired or will expire in the coming
then, several waves of wind farm years from simply being dumped in
construction have swept across the landfills. Instead, they are to be
country, with an exponential returned back into a materials cycle.
increase in the last decade.
An important reason is that the
However, with a maximum operating materials used are quite valuable. For
life of 25 years, the environmentally example, the French company Veolia
sound disposal of end-of-life wind has turned recycling into a lucrative
turbines, especially the fiberglass- business. Its American subsidiary
coated rotor blades, has become a VNA (Veolia North America) was
serious problem. able to sign its first contract in late
fall 2020 with wind turbine manu-
Good opportunities for facturer GE Renewable Energy.
German waste management
companies to enter the Veolia turns GE rotors into a
market raw material for use in ce-
There are various technologies for ment manufacturing
recovering materials from the Although GE Renewable Energy has
amortized rotor blades or for turning its headquarters in Paris, just like
decommissioned wind turbine blades Veolia, both companies agreed to
into ultramodern flooring, for recycle decommissioned GE rotor
example. For German suppliers of blades in the United States. Under
corresponding technologies, 2021 the terms of the contract, VNA will
marks an extremely favorable time to dismantle end-of-life rotors and
enter the US market. break them down into their compo-
nent parts at a facility in Missouri.
Various methods in Bob Cappadona, Chief Operating
development Officer in VNA’s business unit
For years, US wind farm operators Environmental Solutions and
22 German American Trade Q1 2021G T A I I N D U S T R Y T A L K
Services, says: "By returning wind Pellets appeal to environ-
mentally conscious customers About the Author
turbine rotors - which are primarily
made of fiberglass - back to cement However, rotor blades can also be
production as a raw material turned into pellets and panels. In
substitute, we reduce the amount of 2019, for example, Global Fiberglass
coal, sand and minerals needed to Solutions began production in the
make the building material." United States of a product called
EcoPoly Pellets. A panel version is
According to research by business currently being worked on.
consulting company Quantis, Veolia's
process helps reduce CO2 emissions in In order to emphasize the environ-
cement production by 27 percent and mental aspect of EcoPoly Pellets
water consumption by 13 percent. sales, the pellets are provided with
certification indicating their origin
Fiberglass to be recovered from decommissioned wind turbines.
The National Renewable Energy Specifically, the customer is able
Laboratory's (NREL) National Center track the recycling process via data
Ullrich Umann
for Wind Technology is also tinkering from an RFID (radio frequency
Director
with the recycling of rotor blades. identification) chip.
1130 Connecticut Ave., NW
Here, the plan is to extract a type of Suite 1200
resin from end-of-life rotors that can EcoPoly pellets can be made into a Washington, DC 20036
be reused in industrial production. variety of other products, such as T +1 (202) 629 5712
warehouse pallets, flooring or even >> Ullrich.Umann@gtai.de
A different approach is being taken parking bollards, according to the >> www.gtai.de
by Tennessee-based company Carbon supplier. Global Fiberglass Solutions,
Rivers, which is cooperating with meanwhile, plans to process up to guidelines for the storage and
utility companies PacifiCorp and 7,000 rotor blades per year at its two disposal of end-of-life wind turbines,
MidAmerican Energy on this issue. facilities in Texas and Iowa. but also incentive systems to
The focus here is on reusing the ultimately relieve landfills.
fiberglass used in the rotor blades. Statutory regulations
The DOE (Department of Energy) is still missing The regulations could include,
providing financial support for such What is still missing in the US are among other things, extended
development work. environmental regulations specifi- manufacturer responsibility not
cally for the disposal of decommis- only for the safe operation of
Another method coined Re-wind is sioned rotor blades. That is why wind turbines, but also for the
being developed jointly by universi- everything being done at the environmentally sound disposal of
ties in the US, Ireland, and Northern moment takes place either on a end-of-life wind turbines. US states
Ireland. Here, too, fiberglass is voluntary basis or in a legal vacuum. with a larger share of wind energy,
recovered and then used for power Service providers of corresponding such as Texas and Iowa, should
transmission in civil and under- disposal processes, as well as also become more involved in
ground engineering or on the roofs environmental activists, would building infrastructure to recycle
of emergency shelters, towers, etc. therefore like to see statutory end-of-life rotors.
German American Trade Q1 2021 23C R O S S R O A D S
How good intentions can
be totally misinterpreted
By John Otto Magee
Introduction Clichés Americans are superficial is a
Whenever we interact with another Let’s take a simple, common, but German misunderstanding about
person they are interacting with us. very important example. A typical Americans. We Americans have our
This sounds rather obvious. So, let’s situation involving Americans and misunderstanding about Germans,
go little deeper. Germans. It involves a major such as Germans have no sense of
misunderstanding that Germans have humor. We all know that both
When we interact with another about Americans, that Americans are misunderstandings are silly, dumb,
person, we do our best to read them, superficial. untrue, frankly, embarrassing.
to understand them, so that we know
how best to react. Much of our I have heard it hundreds of times, in Klaus the German
behavior is in reaction to others, to one form or another: Amerikaner The point I want to make about
what they say and do. sind oberflächlich, in English interactions is that they are always
Americans are superficial. I don’t participatory. Let’s take Klaus, a
That is the meaning of reaction. But want go into detail about this German, who meets Judy, an Ameri-
often we are so focused on under- particular misunderstanding. can, and they engage in small talk.
standing the other person, on
reading what they say and do, on We all operate on misunderstandings Klaus being German, wants to
reading the signals they send, that about other cultures, whether we discuss subjects of substance. That is
we forget that they are doing the care to admit it or not. I, John what Germans do. Germans often
same with us. When I, John, am Magee, know very little about any bring up subjects of substance. They
interacting with Annegret, she, other culture other than the US, my want different viewpoints, different
Annegret, is interacting with me, home culture, and Germany, where I opinions. They want a lively
John. have lived for more than 25 years. discussion, even a debate.
I know that his sounds obvious, Any thoughts I have about France, But wait, Americans are different. In
trivial, so self-stated. But wait, what Italy, Mexico, China, India are based small talk situations Americans avoid
does it really mean? We have to be on little to no knowledge, even less subjects of substance. They avoid
aware of how what we say and do is experience. Per definition any and all subjects which could lead to lively
interpreted, perceived, understood, thoughts I have about those coun- discussion or debate. Americans bring
misunderstood, by the other person. tries and cultures are over-simplified, up subjects which are light, non-
Yes, I am reading Annegret’s signals. inaccurate, very likely wrong. political, non-controversial, such as
But Annegret is reading the signals I the weather or sports or vacation or
am sending. Signals I am sending food, anything to keep things
consciously or unconsciously. calm and civil.
24 German American Trade Q1 2021C R O S S R O A D S
About the Author:
Americans do not go into depth in Judy asks Klaus what he thinks of
such situations. That’s why it’s Atlanta. She asks him how the
called small talk. We could also call conference is going. She might even
it shallow talk. Shallow vs. deep. Or ask Klaus how his flight to the US
call it superficial talk, meaning on went. How does Klaus react? Most
the surface, keep on surface. likely surprised. “What, my flight? I
want to talk about Corona-virus.”
Americans can do deep talk. In fact, This goes back and forth and Klaus
they’ve been doing it for more than gets impression that Judy is, well,
two hundred and fifty years. You superficial.
need only take a closer look at
American history. Miss the Point
John Otto Magee has lived and worked
I could spell out in great detail the in Germany 25+ years, consulting for
Judy the American German reaction to American small many well-known German brands as
Ok, so let’s get back to Klaus talk. I will not, because I want to well as governmental organizations.
and Judy. They are in Atlanta at a make a bigger point, actually two He is an expert in explaining the dif-
conference. They are colleagues, bigger points. ferences in how Americans and Ger-
but only recently working together. mans think and work. Visit his website
They are excited to finally meet. The first point is, Klaus sees the Contrasting Cultures to learn more on
Even though, frankly, their interaction with Judy, and with how to effectively navigate German-
American workplace interaction.
collaboration has not gone all other Americans during conference,
that well thus far. as verification of what everyone in >> www.contrastingcultures.com
Germany knows, namely that
At a dinner many folks get together. Americans are superficial. from what the other party is
Klaus and Judy are there. It is their experiencing in the interaction. Our
chance to meet and do some small The second point is that it does not behavior influences their behavior.
talk. Klaus then brings up topics of occur to Klaus that Judy is reacting Their behavior influences ours. We
substance. And since it is the year to him. In other words, that his are participating in this together. It
2021, and they are in US, and actions are leading Judy to pull is participatory, and not separated.
America is always a topic in back, to not engage, to try to
Germany, Klaus wants talk about lighten up the conversation. We all know this, right? But, do we
controversial current developments take it enough into consideration
in US: politics, race relations, Klaus is not aware of how his when we interact? I think not. Or
response to the COVID-19 virus, actions affect Judy, thus affecting not enough. There is considerable
the economy, etc. Judy’s reactions to him. Klaus most risk, considerable danger, in not
likely is not aware that Judy taking enough into account how our
As stated, these are not topics perceives him as overbearing, actions affect the other party.
Americans feel comfortable with provocative, rude, maybe purposely
in a small talk setting, most picking a fight with her. And why? Because they may
certainly not in a business setting. misinterpret our intentions. Because
So what does Judy do? She pulls All Interactions they may misinterpret who we are.
back, does not engage, tries to My message here is that every And vice versa. We misinterpret
lighten up conversation, to change interaction is participatory. We their intentions. We misinterpret
the subject. cannot separate what we experience who they are.
German American Trade Q1 2021 25You can also read
