Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud

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Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
German American
  Trade Quarterly
  3rd Quarter 2021 | Vol. 33 | No. 3 | $7.50

ZEISS Celebrates 175 Years of
Technological Success: New Innovation
Center Opens in California
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
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Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
E D I T O R I A L                                                                                                     C O N T E N T S

A     cross the US, most states are fully                                                nC OV E R        S T O R Y
      open for business after more than                                                  ZEISS Celebrates 175 Years
15 months of lockdowns. Now that
                                                                                         of Technological Success:
vaccination rates are increasing,
in-person meetings and events are                                                        New Innovation Center Opens in California        4
becoming more common. GACC
Midwest’s Chicago office is fully open                                                   nE C O N O M I S T S          C O R N E R
to our team members and visitors, and                                                    Riding the Payroll Rollercoaster                10
it has been energizing to connect with
our German-American network outside
of a virtual setting.                                                                    nS P O T L I G H T S
                                                                                         FIRE!!! Hot Ideas NYC                           12
Our signature in-person event, the 2021                                                  Baker Donelson: Facilitating US Market
German American Business Awards,
                                                                                         Entry Through Mergers & Acquisitions            14
will take place October 22 at the
Chicago History Museum. This year’s                                                      groninger: Thirty-Three-Ton Heavyweight
awards categories include Excellence in                   Mark Tomkins                   Takes up the Fight Against Covid                16
Innovation, Economic Development,                President & CEO, GACC Midwest
                                                                                         Faegre Drinker: full range of legal
Services, and Community Engagement,          Another positive sign for German-
and I look forward to honoring the                                                       and consulting services                         18
                                             American business is the return of trade
outstanding achievements of our              shows and other essential industry
community. We will also be presenting        meetings, which are vital for building      nG TA I       I N D U S T R Y         T A L K
an exciting new award, “The Coolest          professional relationships and acquiring
German Thing Made in the USA,” and                                                       The US economy remains
                                             new customers. On a cultural note, I
the winner will be chosen via public                                                     heavily consumer-driven                         20
                                             look forward to our Christkindlmarkets
voting for the first time. The application   this November in Illinois, Wisconsin,
deadline is August 13 – head to              and Colorado. Due to the success of our     nCROSSROADS
gaccmidwest.org/awards to apply or to        online market during the pandemic, we       Butting heads will get us nowhere…              22
nominate a company and to secure your        plan to include a virtual component in
tickets for this year’s much-anticipated     our markets moving forward, bringing
event. All members of the GACCs across                                                   nMEMBER PROFILES
                                             this festive event to GACC members and
the US are encouraged to apply.              friends even if they can’t make it to an    cbs Corporate Business Solutions America        24
                                             in-person Christkindlmarket.
Along with the resilience of our
                                                                                         nSKILLS AT WORK
membership network, our apprentice-          Finally, as Dr. Christoph Schemionek
ship programs have been going strong                                                     Apprentice Sarah Conrad
                                             mentioned in the last issue, I am excited
throughout the pandemic, with Network        to welcome the newly created Delega-        Shines at SW North America                      26
Companies adopting new protocols to          tion of German Industry and Commerce
ensure a safe workplace. In this issue,      in Washington, DC to our Chamber            nJ1 SUCCESS STORIES
you can read about MAT² Apprentice           network. The Washington, DC office
Sarah Conrad and her exemplary work                                                      Abhisaar Sethi                                  29
                                             serves as an important link for German
at SW North America. Our apprentices         companies looking to do business in the
throughout our programs continue to          DC metro area. My colleagues and I in       nWHAT'S ON YOUR DESK?
impress with their hard work and             the GACCs network look forward to           Chandler Baltimore, Marketing
dedication to honing their skills—on         working with Dr. Schemionek and the         Communications Manager, GACC South              30
July 7, President Joe Biden visited with     rest of the DC team.
our ICATT Apprenticeship Program
Network Company Scot Forge and               Stay well,
spoke at ICATT Network College
McHenry County College, where he
shared his intention to invest more in
apprenticeships and fast-growing
industries such as manufacturing and         Mark Tomkins
information technology.                      President & CEO, GACC Midwest
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
C O V E R        S T O R Y

    ZEISS Celebrates 175 Years
    of Technological Success:
    New Innovation Center Opens in California
                                                     When university mechanic Carl Zeiss opened his
                                                     precision mechanics workshop in Jena, Germany
                                                     175 years ago, he could not have foreseen how
                                                     his work would transform the world of optics.
                                                     The company that grew out of its founder's passion
                                                     for functional, science-based discoveries – the
                                                     ZEISS Group – is a global technology leader today.

                                                     Z     EISS innovations have sup-
                                                           ported breakthrough medical
                                                     and diagnostic treatments, the
                                                                                            the building is the ZEISS Group’s
                                                                                            newest innovation incubator. The
                                                                                            Center, completed this spring, is
                                                     development of leading eyeglass        designed to harness the expertise of
                                                     lenses, camera lenses and binocu-      employees, customers and research
                                                     lars, and award-winning EUV            partners across businesses, technolo-
                                                     lithography for the chip industry      gies and disciplines. The goal: to
                                                     that has made ZEISS a driver of        develop the next generation of
                                                     digitalization.                        groundbreaking discoveries in optics
                                                                                            and optoelectronics.
                                                     Every year, millions of surgeries
                                                     worldwide are performed with           The Innovation Center brings
                                                     ZEISS technologies. More than 30       together nearly 700 engineers and
                                                     Nobel Prize laureates have used        scientists, as well as sales and
                                                     ZEISS microscopes. A ZEISS lens        customer service professionals from
                                                     captured the first photo of a man      ZEISS businesses in the San
                                                     on the moon. Numerous Hollywood        Francisco Bay Area. Combining the
                                                     blockbusters have been filmed with     breadth and depth of ZEISS
                                                     ZEISS lenses. Nearly every high-       expertise in one location is a boon
                                                     performance chip in cell phones        for customers, research partners and
                                                     and vehicles is a product of ZEISS     ultimately, consumers. The Center’s
                                                     lithography optics.                    Bay Area location is also of major
                                                                                            strategic significance, part of a
                                                     The collaborative and entrepreneur-    global investment strategy focused
                                                     ial company culture underlying         on growth and research centers to
                                                     these achievements also inspired the   support the company’s commitment
                                                     latest ZEISS milestone: the invest-    to digitalization and sustainability.
                                                     ment in the new ZEISS Innovation
                                                     Center in Dublin, California.          "This is an essential investment for
                             Photo by Jason O'Rear
                                                     Channeling the vision of Carl Zeiss,   ZEISS, leveraging our global

4   German American Trade Q3 2021
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
C O V E R       S T O R Y

resources to further impact customers      eye diseases The company also
                                                                                     An award-winning track
locally in one of the largest technology   provides innovative visualization
                                                                                     record of collaborative
innovation hubs in the world," said        solutions for microsurgery and is         scientific and technological
Euan Thomson, Head of Ophthalmic           actively shaping digital solutions in     accomplishments
Devices for the ZEISS Medical Technol-     healthcare.
ogy segment. "The Center will clearly                                                The mission to improve the lives of
foster collaborative opportunities that    In addition to Medical Technology,        individuals and society at large has
will drive the development of solutions    the Innovation Center houses the          long permeated the research and
and partnerships to improve the quality    ZEISS X-Ray Microscopy business           investment priorities at ZEISS. The
of care for patients and customers in      and the ZEISS Microscopy Customer         enterprise allots over 10 percent
the US and all over the world.”            Center Bay Area, capitalizing on          of its annual revenue to research
                                                                                     and development, and in fiscal year
                                           market and R&D opportunities in
                                                                                     2019/2020 it invested 13 percent.
The US headquarters of the ZEISS           materials research, the life sciences
                                                                                     For decades now, the prioritization of
Medical Technology business is based       and industrial applications. Also
                                                                                     R&D investments has paid off.
at the Innovation Center; the business     represented in the center are Process
supplies healthcare professionals with     Control Solutions, part of the ZEISS      EUV lithography for high-
technologies and application-oriented      Semiconductor Manufacturing               performance microchips
solutions, including implants and          Technology segment and an industry        For more than 20 years, ZEISS
consumables, to diagnose and treat         synonymous with Silicon Valley.           engaged in intensive collaborations
                                                                                     with international partners such as
                                                                                     ASML, the leading supplier of li-
                                                                                     thography systems. ZEISS also joined
                                                                                     forces with additional European
                                                                                     companies and research institutes to
                                                                                     introduce EUV lithography, a revo-
                                                                                     lutionary manu­facturing technol-
                                                                                     ogy that yielded high-per­formance
                                                                                     microchips. EUV technology allows
                                                                                     for major advances in chip minia-
                                                                                     turization, performance and energy
                                                                                     efficiency and, as a result, of digital
                                                                                     end devices and infrastructure. These
                                                                                     efforts were recognized in 2020
                                                                                     when ZEISS scientists, along with
                                                                                     their research partners at TRUMPF
                                                                                     Lasersystems for Semiconductor
                                                                                     Manufacturing and Fraunhofer-
                                                                                     Institut für Angewandte Optik und
                                                                                     Feinmechanik IOF, won the German
                                                                                     Future Prize. ZEISS was also the first
                                                                                     company represented in two of the
                                                                                     three shortlisted teams since the
                                                             Photo by Jason O'Rear   Prize was first awarded in 1997.

                                                                                                  German American Trade Q3 2021   5
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
C O V E R        S T O R Y

    “This Center represents         The co-location of ZEISS microscopy      tional areas are devoted to hands-on
                                    and medical businesses offers            and virtual customer experience and
    an important step in            particularly valuable collaboration      technology demonstration areas,
    strengthening the use of        opportunities in image processing,       research laboratories, and service,
                                    machine learning and artificial          training and production facilities.
    our innovative potential        intelligence – areas in which ZEISS
                                    plans to leverage its experience, as     This is precisely the kind of interac-
    across all technologies.        well as its business and research con-   tive work environment designed to
    We see multiple avenues         nections across the globe. The first     encourage new partnerships among,
                                    collaborative projects to emerge         customers, research partners and
    to open up new market           organically from the teams’ co-loca-     employees, said Florian Mezger, Head
    opportunities – particu-        tion have already been initiated –       of Shared Services & HR North
                                                                             America for ZEISS.
                                    despite limited interaction due to
    larly in the digital            pandemic-related restrictions.
                                                                             “This Center represents an important
    environment.”                   An optimal US location to                step in strengthening the use of our
                                    cultivate collaboration, en-
    Florian Mezger,                 trepreneurship and sustain-
                                                                             innovative potential across all
                                                                             technologies,” he said. “Optical
    Head of Shared                  ability                                  technologies are key to progress in
                                    At the heart of the 20,000-square-       the life sciences, medicine, IT,
    Services & HR                   meter Innovation Center is a large,      telecommunications, automobile,
    North America                   bright atrium that connects multiple     consumer products and many other
                                    spaces for creative teamwork,            fields. We see multiple avenues to
    for ZEISS                       meeting rooms and offices. Addi-         open up new market opportunities

                                                                                                Photo by Jason O'Rear

6   German American Trade Q3 2021
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
C O V E R        S T O R Y

– particularly in the digital         tion is closely linked with
environment.”                         business activities. Solar energy    Continuous breakthroughs in Oph-
                                      powers the Innovation Center,        thalmology and Microsurgery
That is why expanding and             supported by use-based light and     Collaborative research conducted in the early
further investing in the Bay Area     air controls and a heat recovery     20th century by Swedish ophthalmologist and
makes perfect sense, he said.         system. A sophisticated water        Nobel Prize winner Allvar Gullstrand and Moritz
More than 200 of the Innovation       recycling and rainwater manage-      von Rohr, Head of Development at ZEISS, cul-
Center employees already work         ment system is another highlight.    minated in two milestones: the first ZEISS slit
                                                                           lamp, a microscope with a bright light used dur-
in the R&D space; approximately
                                                                           ing eye exams, and PUNKTAL, the world's first
560 ZEISS patents are based on        “Assuming responsibility for the
                                                                           precision eyeglass lens featuring point-focal
research conducted in California,     environment, employees and
                                                                           imagery for razor-sharp vision. The slit lamp led
and approximately 5,000               society is an integral part of our   to the 1953 launch of the first ZEISS surgi-
publications relate to innovations    business philosophy,” Florian        cal microscope, the OPMI® 1, and to this day,
designed and built in California.     Mezger said. “That helps explain     ZEISS is actively shaping Ophthalmology and
                                      why ZEISS is so committed to         Microsurgery. Microsurgery's recently launched
"With this site,” noted Florian       actively funding research and        product portfolio includes robotic visualization
Mezger, “ZEISS is building on its     training, reducing social and        systems such as the ZEISS KINEVO® 900 for
already strong R&D track record       health challenges and improving      spine and neurosurgery. Comprising more than
and expanding its presence near       the well-being of people world-      100 innovations and 180 patents, the system
important research centers and in     wide.”                               marries robotics, digital visualization and mod-
the entire US-American market."                                            ern assistance solutions.
                                      Developing the next gen-             Microscopes that make life-chang-
ZEISS North America employs           eration of breakthrough              ing scientific research possible
more than 3,200 people in both        microscopy and medical
                                                                           The 36 Nobel laureates that have used ZEISS
the United States and Canada. In      technologies                         microscopes include Robert Koch, who dis-
addition to Dublin, California,       The teams based at the new           covered tuberculosis, and Christiane Nüsslein-
ZEISS has offices and facilities in   Innovation Center are focused on     Volhard, who conducts research into genetic
Hebron, Kentucky, White Plains,       maximizing the research-driven       control in embryo development. Four recipients
New York, and Maple Grove,            investments and contributions        of the annual ZEISS Research Award were later
Minneapolis. Globally, the            ZEISS has made across the            awarded Nobel Prizes. Researchers worldwide
                                                                           continue to use ZEISS light, electron/ion and
optical and optoelectronics leader    industries it serves.
                                                                           X-ray microscopes to make even the smallest
employs more than 34,000
                                                                           structures and processes visible.
individuals in nearly 50 coun-        In 2013, for example, ZEISS
tries, with around 30 production      acquired a Bay Area startup,         A leading manufacturer of multi-
sites, 60 sales and service           Xradia Inc, that had pioneered       dimensional metrology solutions
companies, and 27 research and        ultra-high-resolution X-ray          The first measuring machines were derived from
development facilities.               microscopy. This significant         microscope production. In 1919, ZEISS unveiled
                                      extension of the ZEISS micros-       a precision micrometer screw at the Leipzig
Like other ZEISS high-tech sites,     copy portfolio added three-          spring fair. Today, ZEISS produces measuring
the Innovation Center in Califor-     dimensional, high-resolution         solutions that include coordinate measuring
                                                                           machines, optical and multi-sensor systems and
nia meets the highest sustainabil-    imaging capabilities for custom-
                                                                           metrology software for the automobile, aviation,
ity standards. For a foundation-      ers in academia and industry.
                                                                           engineering, plastics and medical technology
owned technology company              The acquisition created what was
                                                                           industries. Innovative technologies like the 3-D
whose core tenets include the         both a challenge and an opportu-     X-ray measuring machines for quality assurance
promotion of science, the             nity – retaining the focus and       are also part of the product portfolio.
contribution to climate protec-       agility of a small startup while

                                                                                                   German American Trade Q3 2021   7
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
C O V E R        S T O R Y

    leveraging the global reach, resourc-   research partners to innovate            highly dynamic live cell structures
    es and brand of a leading microscopy    together with them. As part of the       for lengthy periods; Crystal CT, the
    business such as ZEISS.                 new ZEISS Microscopy Customer            first commercially available crystal-
                                            Center Bay Area, customers and           lographic micro CT system for
    X-ray Microscopy has since evolved      research partners can test the latest    learning about grain boundaries in
    into a key and rapidly growing part     ZEISS electron, light and X-ray          materials research; Cryo workflow
    of the ZEISS portfolio. Through         microscopes, both on site and            for an unadulterated, high-resolution
    sustained innovation investment, the    virtually, and provide feedback that     3D view of sub-cellular structures;
    business continues to lead the market   will inform new designs.                 and the Gemini SEM family for
    for high-resolution X-ray imaging.                                               analyzing sub-nanometer structures
                                            “Innovations in software and data        on a wide range of materials.
    “The continued focus on enabling        management, and our swift adapta-
    customers to extend their research or   tion to an enhanced virtual environ-     On the Medical Technology side, a
    provide solutions has ensured a         ment, have ensured our customers         Customer Experience Center offers an
    successful integration, and the ZEISS   front-row seats to our latest, market-   ideal environment for medical
    X-ray microscopy business will now      shaping technologies,” said Vimal        customers and partners to become
    continue this journey in the ZEISS      Gangadharan, Head of the ZEISS           familiar with and try out the latest
    Innovation Center,” said Daniel Sims,   Microscopy Customer Center North         technology and workflow solutions
    Head of X-ray Microscopy. “Having       America.                                 across the full spectrum of care in
    a clear presence and commitment in                                               Ophthalmology and Microsurgery.
    the Bay Area lays the groundwork        The new Center houses microscopes        Innovative devices and solutions for
    for future collaborations and           with a direct impact on a range of       treating chronic eye diseases,
    partnerships to develop technologies    applications influencing the life        meanwhile, are being developed in
    and business to shape markets.”         sciences, materials research and         the Ophthalmic Diagnostics Compe-
                                            semiconductor markets, he said.          tence Center, which includes research
    ZEISS teams are also more strongly      These include the ZEISS Lattice          laboratories and production areas as
    positioned to invite customers and      Lightsheet 7, which images in 3D         well as training and demo centers.

                                                                                                        Photo by Jason O'Rear

8   German American Trade Q3 2021
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
C O V E R        S T O R Y

Celebrating 175 years of               technological successes since Carl
ZEISS: powering innovation                                                      Lenses that bring movies
                                       Zeiss opened his precision mechan-
for the future                                                                  and TV shows to life
                                       ics and optics workshop in Jena.
From the beginning, ZEISS founder      The company will be celebrating its      Numerous films and series produced
                                                                                by streaming providers or shown
Carl Zeiss, understood the value of    anniversary through a variety of
                                                                                on their platforms, are shot with
collaborations in the development      activities and events. Its close links
                                                                                ZEISS cine lenses. A recent example
of new technologies and of close       to science are evident in projects
                                                                                is the award-winning The Queen’s
relationships with academia. The       such as the "ZEISS Beyond Talks"         Gambit. Other popular series and
research and business partnerships     interview series. In these inter-        films shot with ZEISS lenses include
he forged and fostered led to          views, pioneers and eminent figures      Ma Rainey’s Black Bottom, The White
multiple scientific breakthroughs      from across the globe speak about        Tiger, Lord of the Rings and Downton
and accelerated the transformation     their work, their visions, their         Abbey. ZEISS has also won three
of a small mechanics workshop into     passion and topics with a major          technical Academy Awards for its
a full-fledged company.                impact on the world.                     cinematography lenses.
                                                                                Pushing photography’s
Today, ZEISS Group is held by the      ZEISS is also pooling its strategic      boundaries
Carl Zeiss Foundation, one of          efforts and funds to support social
                                                                                ZEISS has produced high-quality
Germany's largest science founda-      and educational initiatives to           photography lenses since 1890. The
tions. Dividends from the organiza-    encourage children and young             iconic Tessar design, first introduced
tion’s shares promote science and      people to consider a career in the       in 1902, is still the archetype for
teaching in mathematics, computer      sciences and conduct open-minded         small but powerful lenses in smart-
science, the natural sciences and      research.                                phones. The photos from Gemini and
technology. Support is provided for                                             Apollo missions in the 1960s were
projects and individuals in the        In Dublin, California, a grand           captured with ZEISS camera lenses
German states where ZEISS is           opening will be held at the Innova-      that were specially developed for
based. The non-profit activities are   tion Center for customers, business      use in space. The camera lenses used
overseen by an independent             and research partners, as well as for    during the mission formed the nucle-
                                                                                us for the lenses that would later be
administration.                        community dignitaries. But for now,
                                                                                developed for optical lithography.
                                       the primary focus is on moving
Over the past several years, ZEISS     employees into their new work envi-      A renowned supplier
has been expanding, modernizing        ronment and opening the building         to planetariums
and realigning sites in in Europe,     to visitors who have been eager to       Well over 9,000 stars can be dis-
the Americas, Australia and Asia.      experience the Center in person.         played through ZEISS planetarium
The company also is investing                                                   projectors. The first planetarium,
heavily in an optimized infrastruc-    “Moving almost 700 employees into        built for the Deutsches Museum in
ture, in state-of-the-art buildings    the new building was only possible       Munich, opened its doors in 1925,
                                                                                drawing thousands of visitors and
and production facilities, and in      in stages due to the pandemic,”
                                                                                leading to orders from around the
accelerating the company's digitali-   said Florian Mezger, the Head of
                                                                                world. By the end of the 1930s, 27
zation and sustainability. The         Shared Services & HR North
                                                                                planetariums with ZEISS projectors
ZEISS Innovation Center in Califor-    America. “Now that restrictions are      had been built in cities including
nia is the latest manifestation of     being lifted, we look forward to         Los Angeles, New York, Chicago,
this investment strategy.              taking advantage of the many             Philadelphia, Pittsburg, Milan, and
                                       opportunities to build new relation-     Moscow. Today more than 100 mil-
The opening of the Innovation          ships and networks, shape markets        lion people enjoy space shows and
Center coincides with the global       and create an even greater impact        full dome presentations in planetari-
commemoration of 175 years of          for generations to come.”                ums around the globe.

                                                                                             German American Trade Q3 2021   9
Trade Quarterly German American - ZEISS Celebrates 175 Years of Technological Success: New Innovation Center Opens in California - AdmiralCloud
E C O N O M I S T ’ S           C O R N E R

     Riding the
     Payroll Rollercoaster
     By Clarissa Dann, Deutsche Bank Corporate Bank

     As the US and other developed economies relax Covid-19 restrictions,
     businesses should be booming. But can they get the staff needed to
     meet demand? flow’s Clarissa Dann shares a snapshot of Deutsche Bank
     Research analysis on labour market anomalies.

     E  conomic shocks arising from
        Black Swan events such as the
     Global Financial Crisis and the
                                                   leading to higher wages. One way to
                                                   look at this is that companies need to
                                                   outbid the government to get workers.”2
                                                                                                  and hospitality industry since early
                                                                                                  2020 is well documented and
                                                                                                  continues, notes Luzzetti, to
     Covid-19 pandemic impact the                                                                 account for more than a third of
     traditional factors of production such        Enhanced unemployment insurance                the employment shortfall from
     as capital and labour.                        was not the only reason for April’s            pre-Covid levels. Having spent
                                                   weak employment figures. After all, as         months either closed or restricted
     While bold deployment of monetary             Deutsche Bank Chief Economist                  by social distancing measures,
     and fiscal policy has averted repeat-         Matthew Luzzetti observed on 14 May,           rehiring staff is not so straightfor-
     ing the capital starvation of 2008,           “While labour markets in lower wage            ward for this sector as restrictions
     the tight labour market is already            states have underperformed slightly            lift and demand surges in response
     shaping economic recovery with                this year, shortfalls relative to pre-         to mass vaccinations and venue
     some sectors doing better than others         Covid levels are actually larger in            re-openings.
     at attracting new and re-hires.               high-wage states.”3
                                                                                                  In the report, Vacancy yields show
     April surprise                                Leisure and hospitality                        tight labor market, but not where
     The US April payroll figures caught           The scale of job losses in the leisure         you might think (21 June 2021),
     many by surprise with a non-farm
     payroll increase of only 266,000               Figure 1:
     (earlier Dow Jones estimates had               Vacancy yield for leisure and hospitality low but above pre-pandemic
     been for one million new jobs and an
     unemployment rate of 5.8%). This
     upset, noted Deutsche Bank strategist
     Jim Reid in his 10 May commentary1,
     “is highly indicative of how difficult
     it is to hire at the moment as the
     economy fires back”.

     Reid explained, “This is a something
     that only happens late cycle and
     definitely not at the start. Some of
     this is in the logistics of hiring in a
     pandemic, and some of this is likely
     that the fiscal support is so generous
     that the incentive to rush back is low         Source: BEA, Haver Analytics, Deutsche Bank
     for many. There are signs this is

10   German American Trade Q3 2021
E C O N O M I S T ’ S          C O R N E R

                    “[Leisure and hospitality] firms do not
                       seem to be having unusual trouble
         attracting workers from a historical perspective”
                Matthew Luzzetti, US Chief
         Economist, Deutsche Bank Research
Luzzetti reflects, “The common                  aggregate, hires seem to be following
narrative in this sector is that                openings up and firms do not seem
businesses are posting a large                  to be having unusual trouble
number of vacancies but are having              attracting workers from a historical
trouble getting workers to interview            perspective.”
for these positions, even having to
go as far as to offer interview                 While the current vacancy yield is
bonuses.” (see Figures 1 and 2).                low, it is higher than pre-pandemic
                                                levels, and as Covid restrictions
                                                                                         Matthew Luzzetti, Chief US Economist,
However, he adds, when the vacancy              continue to be rolled back, Luzzetti     Deutsche Bank
yield (measured as the ratio of hires           and his team “expect this move to
in a particular month relative to the           continue with hires tracking open-       does not seem to be particularly
number of job openings in the prior             ings”. In his view, “with solid job      dysfunctional”.
month¬) in this sector is examined              gains in this sector and rising
the data “tells a different story”. He          vacancies which are increasingly         Tight elsewhere
explains, “Not only is the vacancy              being converted into new hires,          Other sectors have not fared so well,
yield in this sector higher than the            the labour market in this industry       with trade, transportation, utilities
                                                                                         and manufacturing industries seeing
 Figure 2:                                                                               all-time low vacancy yields, with a
 Leisure and hospitality hiring picking up as vacancies increase                         dramatic increase in job openings
                                                                                         not seeming to result in an appre-
                                                                                         ciable number of new hires. This
                                                                                         could trigger wage push inflation.

                                                                                         Clarissa Dann
                                                                                         Editorial Director of Marketing,
                                                                                         Deutsche Bank Corporate Bank

                                                                                         1.	Early morning Reid, 10 May 2021
                                                                                         2.	See flow’s Back to work, 14 May 2021.
                                                                                             https://flow.db.com/more/macro-and-mar-
                                                                                             kets/back-to-work
  Source: BEA, Haver Analytics, Deutsche Bank                                            3.	US Economic Perspectives: Labor scramble
                                                                                             creates temporary Scarcity 14 May 2021

                                                                                                           German American Trade Q3 2021   11
S P O T L I G H T S

                                     FIRE!!!
                                     By Chris Pollok

                                     Funny how that word always commands
                                     immediate attention. It makes people
                                     react instantly. Of course, how it’s used
                                     makes all the difference. For example,
                                     if your business is on fire, that’s not so
                                     good. If your communications are on fire,
                                     that’s very good.
                                     Do yours need to be set on fire?

                                     T   hat’s what a tax consulting
                                         firm in Houston TX asked
                                     themselves earlier this year
                                                                          It was a courageous move by
                                                                          founder and President of ITC,
                                                                          Mark Dzeda and Tony Vidaud,
                                     when reviewing their promo-          VP of new business development,
                                     tional strategies and web            to engage someone they had
                                     presence. The company – ITC          never worked with, essentially
                                     (Industrial Tax Consulting) -        trusting an unknown entity to
                                     specializes in customized            find solutions to their problems.
                                     property tax solutions. It           ITC wanted out-of-the-box
                                     operates nationally with offices     creativity mirroring their own
                                     in several states and also           philosophy. It takes one to know
                                     collaborates with global ac-         one. And who says corporate
                                     counting firms such as Germa-        communications are supposed
                                     ny’s Rödl & Partner GmbH.            to be boring anyway?
                                     ITC’s conclusion? It was ready
                                     for a total overhaul of its          The Hot Ideas team got to work.
                                     communications.                      For efficiency’s sake it was
                                                                          decided to start building a new
                                     So, after careful consideration      website utilizing the existing
                                     and exploring several options, ITC   platform which – while somewhat
                                     hired Hot Ideas NYC, basically a     limiting – was the most economi-
                                     team consisting of a copywriter      cal solution. In the end every
                                     and concept creator plus – in this   aspect of the previous site was
                                     case – an art director and web       analyzed, re-considered, torn
                                     designer to provide a fresh look     apart, re-worked or simply
                                     and explore a new approach.          scrapped. A poignant tagline was

12   German American Trade Q3 2021
S P O T L I G H T S

conceived (Count. On. Us.), photos     be added while the previous one          tions. Also under consideration are
were changed, videos inserted for      remains creating a de facto slide        webinars and strategically-placed
extra visual effect, the copy style    show allowing site visitors to           billboards.
morphed into something more            eventually view the entire cam-
substantial and less clichéd, and      paign. Entertaining? Definitely.         Is the client satisfied? So far, so
cosmetic changes were implemented.     Unique? For sure. Effective? Go see      good. After all, they did fire their
                                       for yourself.                            previous outfit.
But most importantly, the team - in
conjunction with a very receptive      Of course, a company must do more
client - came up with a novel idea:    to increase its client base and appeal     Hot Ideas NYC
to treat the home page as an ad.       to a broader range of prospects. To        Creative communications: from
Yes, as in print ad. A catchy visual   reach them, Hot Ideas NYC devel-           newsletters to website development
and attention-getting headline         oped a long term communications            and everything in-between.
promising a benefit replaced a         strategy enhancing the brand               Chris Pollok is an award-winning
static, predictable home page. But     identity established by the new            copywriter and marketing consultant
that’s not all. The home page now      website with a mix of social media
                                                                                  >> www.hotideasnyc.com
also introduces a unique feature.      posts, topical newsletters, confer-        >> chris@hotideasnyc.com
The initial “ad/home page” will        ence sponsorships, direct mail, press
                                                                                  232 West 116th St. Ste 192
change periodically and new,           releases and print ads which target a
                                                                                  New York NY 10026
different visuals and headlines will   variety of relevant trade publica-

                                                                                                German American Trade Q3 2021   13
S P O T L I G H T S

     Facilitating US Market
     Entry Through Mergers
     & Acquisitions (M&A)
     Opportunities and challenges for utilizing strategic
     transactions to enter the “new normal” US market
     By Sebastian Meis and Felix Faerber, Baker Donelson

     A     s the Fall of 2021 is approach-
           ing, businesses are commonly
     assessing strategies implemented in
                                               such as expansion to new regions, in
                                               an expedited manner.
                                                                                      nesses' desire to utilize existing
                                                                                      operational structures or intent to
                                                                                      establish new processes in a
     response to the economic fallout          Traditionally, expansion plans for     particular market. Depending on the
     from the COVID-19 pandemic. Due to        entering new regions could be          scope of a strategic integration, a
     a different economic landscape,           differentiated between an organic      business may acquire a complimen-
     rather than returning to pre-pandem-      growth and an accelerated ap-          tary business, competitor, or
     ic procedures, businesses may be          proach. A key element in determin-     supplier to benefit from existing
     forced to adapt planned projects,         ing an approach is often a busi-       structures.

                                                                                      Following the breakout of the
                                                                                      COVID-19 pandemic, acquisitions
                                                                                      and similar transactions faced
                                                                                      various challenges, such as uncertain
                                                                                      market conditions, translating
                                                                                      business needs into an M&A strategy
                                                                                      in the "new normal," and valuation
                                                                                      of assets. As the effects of the
                                                                                      pandemic are subsiding and pressure
                                                                                      for market position increases,
                                                                                      businesses have turned more often to
                                                                                      an M&A strategy to facilitate
                                                                                      expansions. Specifically, businesses
                                                                                      desire to acquire existing skills,
                                                                                      resources, and technologies in a new
                                                                                      region. In turn, based on recent
                                                                                      surveys and market studies, a
                                                                                      majority of questioned businesses
                                                                                      intend to allocate more resources to
                                                                                      M&A activity than prior to the

14   German American Trade Q3 2021
Put down
                                                                                                               roots for your
COVID-19 pandemic as a way to             to successful M&A market entry.                                      business
                                                                                                               where there’s
achieve key strategic priorities.         Such planning entails, among others,
                                          locating and taking time for initial

                                                                                                               room to grow.
Considering such heightened appetite      discussions with a target business or
for M&A transactions, mindful             asset. Based on such discussions, key
assessments of opportunities and          transactional elements – e.g. asset or
challenges are instrumental for a         share transaction, purchase price
business' success. In particular, when    (formula), exclusivity and due                                       If you’re looking for a skilled workforce,
seeking to enter a market like the        diligence – are to be defined in a                                   operating costs 70% lower than San
                                                                                                               Francisco and New York City1, a
United States through M&A transac-        letter of intent or term sheet. Upon                                 business-friendly tax structure that
tions, businesses are usually able to     reaching a preliminary agreement, a                                  incentivizes growth, and a high quality
                                                                                                               of life for business owners and employees,
better bridge cultural gaps and           thoroughly conducted due diligence                                   then Ohio is for you.
address operational challenges,           of a target business will unearth
which frequently impede on a              possible risks and allows a business                                 Learn why 27 of the nation’s Fortune
                                                                                                               500 companies call Ohio home—and why
successful introduction of a product      to make an educated decision on                                      Germany is the #2 source of FDI from
or service.                               whether or not to further pursue a                                   Europe5—and see how your business
                                                                                                               can flourish here too.
                                          transaction. Once a decision has been
Moreover, by acquiring local              reached to pursue the transaction,
industry knowledge and existing           properly conducted closing and                                       OhioisforLeaders.com
processes, businesses have histori-       post-closing integrations are
cally been in an advantageous             essential to avoid potential negative
position to address product/service       operational effects, as well as                                                     Ohio’s Economic Development Corporation

issues, customer, vendor, and             disputes arising from the transaction.
supplier conflicts, as well as identify

                                                                                                                                   #1
business prospects. By utilizing these    Bearing in mind opportunities
advantages, businesses may avoid          and recent market shifts due to
costly "growing pains," such as a         the COVID-19 pandemic, strategic                                                         in the U.S. for
high personnel turnover rate and          transactions for entry into the                                                          affordability3

disputes due to cultural misunder-        US market will likely increase in
standings, by seeking to establish
new US operations.
                                          the coming years. As a result of
                                          such market conditions, a growth
                                                                                                                                   21st
                                                                                                                                   largest worldwide
                                          analysis through an M&A transac-                                                         economy
An additional positive factor is          tion in the US may create substantial
the flexibility of the US M&A
market. Although statutory and
                                          value in the "new normal" economic
                                          landscape.                                                                               300+
                                                                                                                                   higher education
regulatory restrictions exist and                                                                                                  campuses 4
adherence to applicable require-

                                                                                                                                   0%
ments is critical, in recent years,        Contact Information:
structures commonly utilized in            Sebastian Meis
                                                                                                                                   state tax on
Germany, such as a “locked-box"            Baker Donelson                                                                          corporate profits
transaction, have become more              Direct: 404.443.6771
                                                                                   A D V E R T I S E M E N T

common in the United States.               >> smeis@bakerdonelson.com
                                                                                                                      1 - Cushman Wakefield: Q3 2019

                                                                                                               Ohio
                                                                                                                      2 - Fortune Magazine, 2020
                                           Felix Faerber                                                              3 - U.S. News Affordability Rankings, 2021
As with most economic approaches,          Baker Donelson                                                             4 - EMSI; IPEDS 2019
                                                                                                                      5 - ODSA, June 2020
a US market entry through M&A also         Direct: 404.443.6721
bears challenges. Due to the com-          >> ffaerber@bakerdonelson.com
plexity of these challenges, careful
                                           >> www.bakerdonelson.com
tax and legal planning are material
S P O T L I G H T S

     Thirty-Three-Ton
     Heavyweight Takes up
     the Fight Against Covid
     At the beginning of May,
     groninger shipped a special
                                     I n the joint fight against a global
                                       pandemic like COVID-19, it is
                                     important to use all available
                                                                             This was urgently needed because
                                                                             the global need for Covid-19
                                                                             vaccines was immense and the
     packaging line used             means to stop the virus as quickly      existing available processing
                                     as possible. This is exactly what       capacities were very lean com-
     specifically for processing     groninger has demonstrated: In          pared to the demand.
                                     record time — just eleven months
     COVID-19 vaccines to the        — a washing, sterilizing, filling and   “You could say “The heat is on!”
     US. The German-based            closing line was detail-designed,       — and justifiably so. We all want
                                     built and delivered on time. In the     to get this virus under control as
     filling machine manufacturer    early summer of 2020 the custom-        quickly as possible,” says Jens
     designed and built one          er, an American multinational           Groninger, CEO of the filling
                                     specialty biopharmaceutical             machine manufacturer of the
     of its flagship INTEGRA         company, received an order from         same name from Crailsheim,
     bulk vial filling lines in a    the US authorities to significantly
                                     expand its capacity to produce and
                                                                             Germany. The construction and
                                                                             timely delivery of this system
     record setting time.            process COVID-19 vaccines.              were one of the most ambitious
                                                                             orders in the company’s 40-year
                                                                             history. “Thanks to the outstand-
                                                                             ing professionalism and commit-
                                                                             ment of our team and our
                                                                             partners everything went smooth-
                                                                             ly. The organization of the
                                                                             shipment alone took an immense
                                                                             amount of work and was a
                                                                             downright mammoth task.”

                                                                             No wonder, the vial filling system
                                                                             with isolator has a total weight of
                                                                             33 tons — safely dispatched in nine
                                                                             airfreight boxes on three trucks.
                                                                             An aircraft was chartered for the
                                                                             ‘heavy lift’ across the Atlantic: On
                                                                             May 13, a Boeing 747-F trans-
                                                                             ported the valuable load from
                                                                             Frankfurt-Hahn to the US. Once
                                                                             the machine arrived at its destina-
                                                                             tion, the installation and commis-
                                                                             sioning started immediately.

16   German American Trade Q3 2021
WISCONSIN
                                                                                                                 is built for
                                                                                                                 business
“We at groninger are proud of our full
                                                Heiner Dornburg
range of capabilities in the United                                                                                   A world-class
States. From engineering to manufactur-
ing of complex parts, kits, assemblies                                                                                workforce,
and machines; from remote support to                                                                                  business-friendly
field service – we also do it all Char-
lotte, NC based.” says Heiner Dornburg,                                                                               climate, low cost
CEO of groninger’s wholly owned US                                                                                    of living and
subsidiary. Since 1997, the US groninger
team of meanwhile over 60 highly
                                                                                                                      excellent
trained professionals provides new                                                                                    quality of life
machine sales and comprehen­sive
services for North American customers.
                                                                                                                      are waiting for you
                                                Heiner Dornburg is CEO of
                                                groninger USA LLC. He has been
                                                                                                                      in Wisconsin.
Now several Charlotte field service
                                                involved in transatlantic business
technicians were also part of the race          cooperation for over 20 years
against the virus. Their task: installing       and is an Executive Board Mem-
and starting up this newest INTEGRA line        ber of the GACC South.
together with German colleagues. After
the installation, additional time is spent
to ensure the line is fully qualified for the
task. Once done, almost 15,000 vials are
processed every hour on the fully
integrated line. If the line is operated at
full capacity, it can produce over 30           Contact Information:
million vaccination doses per month.            groninger USA LLC
                                                14045 South Lakes Drive
“This is another important step in
the fight against the coronavirus,”
                                                Charlotte, NC 28273                                              Wisconsin excels at
                                                Phone +1 704 295-9000
Jens Groninger is convinced. “We are
                                                >> info@groningerusa.com                                          n   Advanced manufacturing
proud to do our part here and to
                                                >> www.groningerusa.com
contribute to society.”
                                                                                                                  n   Biohealth

                                                                                                                  n   Food and beverage

                                                                                                                  n   Water technology
                                                                                     A D V E R T I S E M E N T

                                                                                                                  n   Energy, power and
                                                                                                                      controls

                                                                                                                        For more information, please contact:

                                                                                                                        Katy Sinnott
                                                                                                                        Vice President of Global Trade and Investment
                                                                                                                        katy.sinnott@wedc.org +1.608.210.6838
S P O T L I G H T S

     Faegre Drinker
     Offers a full range of legal and
     consulting services to help clients
     navigate today’s myriad challenges
     F   aegre Drinker is a top 50 firm
         designed for clients. Their
                                           What are some of the biggest
                                           challenges to intellectual property in
                                                                                      groups continuously help clients
                                                                                      navigate these complex and ever-
     culture is firmly rooted in           this rapidly-evolving digital world?       growing challenges.
     relentless client focus and mutual
     trust that empowers collaboration.    Data protection and monetization of        Healthcare is one of your focus areas.
     They pride themselves on listen-      big data make privacy and cybersecu-       Has the pandemic led to new services
     ing to understand client priorities   rity one of the biggest challenges we      or legal challenges?
     and pressure points. They bring       face in the digital world today. Follow-
     fresh ideas that work, and deliver    ing closely are strategic intellectual     Telehealth has emerged as a crucial
     excellence — without arrogance.       property portfolio management, trade       lifeline during the COVID-19 public
     They are committed to their           secret protection and licensing,           health emergency, mitigating both the
     communities and to building           requiring an integrated approach and       spread of disease by infected individu-
     a diverse and inclusive firm          extensive knowledge of the technology      als and the risk of becoming infected
     that reflects those communities       and its key players. Our privacy,          for healthy patients. While most
     and their clients.                    cybersecurity and data strategy and IP     policies are temporary during the

18   German American Trade Q3 2021
S P O T L I G H T S

public health emergency, our health      the full scope of workforce manage-      positioned to help organizations
care system is being transformed by      ment challenges to provide clients       understand the nuances of local
the ability to practice virtually, and   with bespoke guidance related to the     culture and navigate corporate
Congress should encourage that           global crisis.                           issues in their new US markets.
transformation by updating policies
to ensure continued access to            In addition to counselling startups in
telehealth beyond the scope of this      the US, do you offer services for         Contact Information: :
pandemic.                                startups from other countries looking
                                         to establish business in the US as
With workplace environments              well?
disrupted worldwide by the pan-
demic, has Faegre Drinker had an         We regularly partner with clients
increase in employment and labor         seeking to enter the United States
law activity?                            and other new markets, guiding
                                         leaders through the regulatory
From maintaining workplace safety        challenges of international business
during the height of the pandemic        so they can launch new ventures
to navigating the complexities of        with confidence. Through practical,
remote work and vaccinations,            integrated, business-minded counsel,      Claudia Schultze, Ph.D.
employers faced a lot of new chal-       we help organizations grow                Counsel
lenges in the last 16 months. Our        and operate seamlessly on an              Wilmington
                                                                                   +1 302 467 4262
labor and employment working group       international scale. With a national
                                                                                   >> claudia.schultze@faegredrinker.com
diligently monitors developments on      footprint in the US, we are

                                                                                   Ashley I. Pezzner
                                                                                   Partner
                                                                                   Wilmington
                                                                                   +1 302 467 4256
                                                                                   >> ashley.pezzner@faegredrinker.com

                                                                                               German American Trade Q3 2021   19
G T A I   I N D U S T R Y     T A L K

         The US economy remains
         heavily consumer-driven even
         during the Covid-19 pandemic
                                                 By Ullrich Umann, GTAI

         The US population has                   Purchasing power:
                                                 Consumer-driven popula-
                                                                                         The us government's stimulus and
                                                                                         aid packages for 2020 and 2021
         solid purchasing                        tion with high income levels            reached a total volume of US$4.5
                                                 In 2020, per capita disposable          trillion. The focus was on strength-
         power, making it the                    income in the US was $52,992 ($;        ening health care and combating

         world's largest                         based on 2019 prices). Of the 330
                                                 million inhabitants, 63 percent are
                                                                                         the pandemic, on bridging loans
                                                                                         for small and medium-sized
         market for consumer                     of working age.                         businesses and on cushioning
                                                                                         social hardship in the event of
         goods and services.                     The volume of all private income        short-time working and unemploy-
                                                 in 2020 amounted to US$19.69            ment.
A D V E R T I S E M E N T                        trillion, of which US$ 9.33 trillion
                                                 was accounted for by wages and          To adults with annual incomes of
                                                 salaries. In April 2021, the average    less than US$ 75,000, one-off
                                                 weekly income of a private sector       payments totaling US$ 800 billion
                                                 employee was $1,055.95 in               were made, and a further US$ 700
                                                 seasonally adjusted terms, accord-      billion flowed as co-payments to
                                                 ing to data from the US Bureau of       unemployment benefits.
                                                 Labor Statistics.
                                                                                         Vaccination progress
                                                 The pandemic-related temporary          opens shop doors
                                                 closure of retail, leisure, sports,     Due to the rapid progress of
A pioneering legacy …
                                                 hospitality and restaurant industries   vaccination and the associated
From the early days, Nebraska farmers            led to lower consumer spending in       opening of public life, the face-to-
learned to thrive by adopting the latest         2020, while household savings rose.     face trade has recorded growing
agricultural techniques. Today, that spirit      In February 2021, the savings           visitor numbers since March 2021
of progress lives on.                            volume reached a peak of USD 2.4        and an increase in sales of up to 30
                                                 trillion.                               percent compared to the previous
                                                                                         year. Total retail sales that month
Here’s why some of the world’s most innovative   Consumer spending:
agricultural manufacturers call Nebraska home:
                                                                                         totaled $620 billion, an increase of
                                                 Demand for goods and                    10.7 percent compared to February
• A highly skilled, hardworking workforce that   services booms in 2021                  2021.
  understands agriculture.
• Abundant workforce development resources,      In the USA, consumption plays a
  including the ICATT Apprenticeship Program.    central role in economic activity –     In the spring of 2021, retailers had
• Robust tax incentive programs to help          private consumption accounts for        difficulties in getting enough new
  companies succeed.                             68 percent of gross domestic            goods into the sales rooms – in
• A business friendly environment with low       product. There is a close interaction   addition to the increased number
  business costs.
• Strong local supply chain and distribution
                                                 between consumption and eco-            of visitors and customers, there are
  network.                                       nomic growth: the more people           also increased transport and
                                                 consume, the faster the economy         logistics costs and partly delivery
                                                 grows and vice versa.                   bottlenecks, for example, in the

opportunity.nebraska.gov
G T A I   I N D U S T R Y         T A L K

                                                                                     About the Authors

case of semiconductors. Manufactur-     invested in durable household
ers and retailers are now trying to     technology, including ICT equipment,
pass on the increased costs to the      but also in motor vehicles and, in
end users.                              particular, in the construction and
                                        purchase of single-family homes. As
According to Labor Department           a result, applications for consumer,
statistics, consumer prices (CPI) had   motor vehicle and mortgage loans
risen 2.6 percent year-on-year at the   has skyrocketed. In February 2021,
end of March 2021, up 3.6 percent in    private households pushed ahead              Ullrich Umann
April, representing the highest         with a credit burden totaling US$ 4.2        Director
monthly increases on a year-on-year     trillion.                                    1130 Connecticut Ave., NW
                                                                                     Suite 1200
basis since August 2018. The Federal
                                                                                     Washington, DC 20036
Reserve's inflation target of two       In addition to buying on installments        T +1 (202) 629 5712
percent was thus exceeded in the        and credit as well as impulse                >> Ullrich.Umann@gtai.de
spring of 2021. But the central bank    purchases, US consumers spend an             >> www.gtai.de
interprets this development as          average of US$ 18,000 per year or
temporary, since the underlying         US$ 1,500 per month on leisure              survey, the results of which were
assets used in the previous year were   activities, restaurant visits, travel and   summarized at Fortunly.com. But
extremely low due to the pandemic.      subscription services.                      finance and retail make it quite easy
                                                                                    for consumers to spend money, even
Consumer behavior:                      Buying on credit widespread                 if it hasn't been earned. For example,
after home purchases, lei-              Purchases are made quickly and              60 percent of the population regu-
sure spending returns                   sometimes impetuously, as 70 percent        larly use their max out their credit
In 2020, many private households        of respondents replied in a 2019            cards limits or overdraft them.

                                                                                    The same survey showed that each
                                                                                    consumer carries out up to five
                                                                                    impulse purchases per month with a
                                                                                    total value of an average of US$ 109.
                                                                                    The respondents stated that their
                                                                                    income has risen steadily in recent
                                                                                    years, but not to the extent that all
                                                                                    purchase wishes could be fulfilled.
                                                                                    Industry, trade and the advertising
                                                                                    industry regard their economic future
                                                                                    as secure on this basis.

                                                                                     More information:
                                                                                     For more details, including supporting
                                                                                     graphs please visit:
                                                                                     >> https://rb.gy/tb2jkg

                                                                                                   German American Trade Q3 2021   21
C R O S S R O A D S

     Butting heads will
     get us nowhere…
     By John Otto Magee

     Conflict is an inevitable
     and uncomfortable               I n this first installment of how
                                       Germans and Americans approach
                                     conflict in the workplace, John
                                                                              ing. Escalating conflict should be an
                                                                              option of last resort. And since
                                                                              effective leadership is expected to
     part of human                   Magee touches on how fundamental         anticipate and prevent conflicts
     interaction. It’s caused        cultural differences lead to different   within their organization, those
                                     outcomes.                                conflicts which have become public
     by a number of factors,                                                  - escalated - are a sign of leadership
     primarily rooted in             Escalation                               failure.
                                     German Approach
     differences of opinion.         Germans view conflicts as funda-         American Approach
     Conflict resolution is          mentally negative and discomfort-        In the American context conflicts
                                                                              are a fact of life. Escalation is often
     not always easy.                                                         not only necessary, the individual
     Tensions rise. The path                                                  has a fundamental right to seek

     to resolution can be                                                     resolution, to "have my day in
                                                                              court." Effective leadership in the
     short and quick or                                                       US is defined, among other things,
     long and drawn out.

22   German American Trade Q3 2021
C R O S S R O A D S

by its ability to resolve conflicts     will be undermined.
                                                                                  About the Author:
which have come out into the open.
                                        If you are a member in a transatlan-
German View                             tic team and come into conflict
Germans are surprised, irritated, at    situations with your American
times even shocked, at how often        colleagues, be prepared for those
and quickly their American col-         conflicts to be escalated rather
leagues raise a conflict to the next    quickly. Your American colleagues
management level. Escalation is         will be less inclined to go the extra
seen by Germans as a sign of their      mile with you in order to resolve the
own failure as colleagues on the        conflict at your working level.
team level. Competent, professional,
rational people are expected to         Advice to Americans
resolve their differences among         If you lead Germans, you may
themselves.                             sense, hear about or even witness
                                        conflict among team members.
American View                           Don‘t be surprised if they don‘t or
                                                                                  John Otto Magee has lived and worked
Conflicts among/with German             only after some time ask for your         in Germany 25+ years, consulting for
colleagues go unresolved, or            assistance in resolving that conflict.    many well-known German brands as
unresolved for too long. The air                                                  well as governmental organizations.
needs to be cleared. Americans          This is neither a challenge to your       He is an expert in explaining the dif-
believe that colleagues should seek     leadership nor is it an indication        ferences in how Americans and Ger-
resolution openly and confidently.      that Germans like long, drawn out         mans think and work. Visit his website
German management should be             internal battles. Chances are, they       Contrasting Cultures to learn more on
engaged. "Isn't that what manage-       are trying to resolve it themselves.      how to effectively navigate German-
ment is paid for?"                      They don't want to bother or              American workplace interaction.
                                        embarrass you.                            >> www.contrastingcultures.com
Advice to Germans
If you lead Americans, get ready to     If you are in a transatlantic team       be taken at face value. Give it a
resolve conflicts on a regular basis.   and have a conflict of interest with     chance. If you have a German
If you try to avoid them or to push     a German colleague, don't be             manager, be very careful about
them back down to the working           surprised if he/she discourages you      escalating the issue too early. In the
level you run the danger of being       from escalating the issue to the next    German logic, you will be perceived
perceived as a weak leader who a.)      level.                                   by all - German boss, German
avoids conflict and/or b.) is unsure                                             colleague, German observers - as
about how to resolve conflict. Either   The German attempt to resolve the        uncooperative, rash, possibly
way, your legitimacy as team leader     problem with you personally should       hot-headed.

                                                                                                German American Trade Q3 2021   23
M E M B E R         P R O F I L E

     cbs Corporate Business
     Solutions America -
     bringing Germans and
     Americans together in doing IT right
     A    t cbs Corporate Business
          Solutions America (cbs) we are
     proud of our German roots. The cbs
                                           seeing incredible growth in just 3
                                           years, we thought this would be a
                                           good time to introduce ourselves.
                                                                                 think of it as an operating system
                                                                                 for big companies. SAP helps
                                                                                 organizations manage different
     brand has been a widely recognized                                          business processes across functions
     one within IT in Germany and has      We are SAP consultants. Our team      such as finance, supply chain, HR,
     been at the forefront of SAP          helps companies who use SAP to        payroll, among many others.
     transformations over the past 25      run their day-to-day operations,      Through technology, business
     years. Our young subsidiary in the    optimize, configure, update, or       process know-how, and SAP
     US is headquartered in Devon, PA      migrate business processes and data   technical expertise, cbs offers a
     with two other offices in Denver      to make their lives a little easier   comprehensive, end-to-end portfo-
     and Detroit and hopes to bring this   and more efficient. For those who     lio to help global organizations get
     recognition and success to the        may be scratching their heads         the most value out of their SAP
     North American market. After          wondering What is SAP? - just         investments.

24   German American Trade Q3 2021
M E M B E R       P R O F I L E

Aside from the classic, more common        4)	America SAP Rollouts for             demand planning and supporting
Management and SAP Consulting                 German enterprises – as a             remote workforces last year. Some of
Services, cbs stands out with a very          company with its parent in            these changes are here to stay and
specialized portfolio:                        Germany, cbs America has helped       next generation ERP platforms like
                                              many German organizations with        SAP S/4HANA can be the answer to a
1)	Data Migration – over the                 template rollouts in North            lot of these disruptions.
    years, cbs has developed its own          America, Mexico and LATAM. We
    software (ET Enterprise Trans-            have a deep understanding of          As systems become more complex
    former®) to help its customers            how Germans and Americans do          every day, with more integrations,
    with smoother processes and the           business to effectively assist with   more inter-connected business
    delivery of better results for their      SAP implementations.                  partners and larger landscapes hosted
    M&A’s, system consolidations,                                                   both on premise and in the cloud,
    data harmonization and transfor-       At cbs we do things differently. We      having an experienced partner
    mations, just to name a few.           understand that SAP is designed to       becomes critical. cbs can be that
                                           support businesses, not the other way    partner.
2)	Mergers and Acquisitions               around. This is why we try to
   – during M&A activities a seller        understand the business pains of our
                                                                                     Contact information:
   must hand over all relevant data,       customers first, before even talking
   systems, processes, etc. without        about SAP. If 2020 taught us any-         >> www.cbs-consulting.com/us
   disrupting business continuity          thing, it is that digitization must be    >> usa-office@cbs-consulting.com
   during and after the transaction.       accelerated. A lot of companies were
                                                                                     Phone: +1 484 583 7144
   We can help on the seller side          hit hard with supply chain disruption,
   (carve-out) and the buyer side
   (carve-in) and spilt / merge up
   and running SAP systems without
   any impact on the business.

3)	Selective Data Transition
   (SDT) to SAP S/4HANA
   – the options for upgrading to the
   latest SAP technology are either
   to set up an entirely new system
   (greenfield), do a technical
   upgrade (brownfield), or use SDT,
   which allows a customer to
   selectively re-use parts of its
   existing ERP solution while
   re-designing other parts of their
   IT landscape. No one has more
   experience with Selective Data
   Transition than cbs.

                                                                                                  German American Trade Q3 2021   25
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