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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
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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
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
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
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
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
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
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
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 2021E 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 11S 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 2021S 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 13S 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 2021Put 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 materialS 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 2021WISCONSIN
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 +1.608.210.6838S 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 2021S 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 19G 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 $620 billion, an increase of
Demand for goods and 10.7 percent compared to February
• A highly skilled, hardworking workforce that services booms in 2021 2021.
understands agriculture.
• Abundant workforce development resources, In the USA, consumption plays a
including the ICATT Apprenticeship Program. central role in economic activity – In the spring of 2021, retailers had
• Robust tax incentive programs to help private consumption accounts for difficulties in getting enough new
companies succeed. 68 percent of gross domestic goods into the sales rooms – in
• A business friendly environment with low product. There is a close interaction addition to the increased number
business costs.
• Strong local supply chain and distribution
between consumption and eco- of visitors and customers, there are
network. nomic growth: the more people also increased transport and
consume, the faster the economy logistics costs and partly delivery
grows and vice versa. bottlenecks, for example, in the
opportunity.nebraska.govG T A I I N D U S T R Y T A L K
About the Authors
case of semiconductors. Manufactur- invested in durable household
ers and retailers are now trying to technology, including ICT equipment,
pass on the increased costs to the but also in motor vehicles and, in
end users. particular, in the construction and
purchase of single-family homes. As
According to Labor Department a result, applications for consumer,
statistics, consumer prices (CPI) had motor vehicle and mortgage loans
risen 2.6 percent year-on-year at the has skyrocketed. In February 2021,
end of March 2021, up 3.6 percent in private households pushed ahead Ullrich Umann
April, representing the highest with a credit burden totaling US$ 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 21C 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 2021C 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 23M 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 2021M 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 25You can also read
