Please note: This study is only available in German. 

The USA is reindustrializing – and Germany will profit

When production in the United States starts kicking in again, this will invariably be at the expense of the mature economies with a high manufacturing share. That's the view commonly held. But the Bain study "Go West! How companies can profit from the reindustrialization of the USA" categorically refutes this claim. And warnings that an undermining process is in the offing are equally unfounded. The fact is: No other OECD country is set to profit more from the renaissance of manufacturing in the USA than Germany.

The main reason for this is that US companies especially require machinery and equipment, engineering expertise and components for the reconstruction and modernization of their production sites – and German companies are traditionally strong in precisely these fields. According to the Bain study, German exports to the USA can be expected to surge by 28 percent or 29 billion US dollars by 2017. However, Germany's companies are not simply relying on their export strength. They are increasingly building up production capacities in the USA, with their rivals from other countries doing likewise. The Bain study forecasts that direct investment in the USA will expand by a good 50 percent from 2013 to 2017 compared with the period 2008 to 2012. German companies will profit far more from this than, for example, their French or Italian rivals.

The reindustrialization of the United States is thus creating considerable growth opportunities for the German economy. But the only companies in a position to exploit these chances will be those that correctly set their sights on expansion in the North American continent. Bain has identified four key levers for this:

• Capital allocation
• Organization
• Distribution
• Administration

In essence companies need to gear up their organization for the expected growth and provide the necessary resources in good time. But nor should they lose sight of the possibilities existing in the EU domestic market, China and the emerging markets either. The important thing will be to control all four driving forces of global expansion much like a coachman steering a horse-drawn carriage. For German industry this represents both a major challenge and a unique opportunity.

Download PDF