Fourth Time's The Charm: Back to Germany Attracting Jobs & Investment

Kristie McKillip is Director of Business Development for Indy Partnership, a regional economic development organization dedicated to attracting new jobs and investment to the 10-County Indianapolis Region. 

Follow Kristie on Twitter at: http://twitter.com/KDMcKillip

READ KRISTIE'S BIO
FOLLOW KRISTIE ON TWITTER

Hannover Messe: A Target-Rich Environment with Very Little U.S. Competition

Wednesday, April 21, 2010 by Kristie McKillip

European Trade Mission
Day 2 - Hannover Messe
 
With all of the passport drama of the previous day behind me, I started the morning out refreshed and energized ... and boy was I going to need a lot of energy!  My morning started with a breakfast meeting at 8:30 a.m. followed by a hectic schedule of back-to-back meetings at the trade show. 

Let me just state for the record, this is not your average trade show.  Hannover Messe is the single largest industrial trade fair in the world with over 4,000 exhibitors.  I know that may sound big, but you really can’t appreciate just how big it is unless you see it.  Literally, we’re talking about 27 halls of exhibitors -- and all of the “halls” are large buildings. 

So the Hannover complex is set up for 27 large buildings, all full of exhibitors -- some of which have spent hundreds of thousands of dollars on their state-of-the-art exhibits, not to mention the cost of shipping their equipment in for demonstrations.  The show is so big, that they have three different shuttle lines taking people around the show from hall to hall.  If you have one meeting in "Hall 3" and then your next meeting is in "Hall 20," it could literally take you a good 20 minutes to get from place to place on foot.  I learned first-hand today just how important those shuttle are!  It is truly impressive -- and this is coming from someone who has seen a lot of trade shows. 

I was so glad that we had strategically secured pre-arranged meetings with exhibitors and other companies and that we had a set agenda for my time at this trade show.  Otherwise, it would have been very easy to get lost in the sheer size of the show and become overwhelmed. 

I had meetings with eight companies today and two consulting firms.  I met with companies across the advanced manufacturing spectrum from a die casting company for the wind industry to a power capacitor manufacturer to a specialty, precision components manufacturer.   Before I knew it, it was already 6 p.m.!  The day just flew by.  All of my meetings were really good.  All eight companies will be good future prospects, and I would classify three of them as “warm” leads.  These are companies that are actively pursuing plans to establish a presence in the U.S. market, and that would be a good fit for the Indianapolis region. 

Today was certainly a great day!  It was a business development professional’s dream -- a target-rich environment with little to no competition.  Clearly, the volcano had an impact on the attendance at the show. 

As unhappy as I was that some of my Indiana colleagues were unable to join, I realized that this was also the fate of our competitors from other states and regions in the U.S.  In every meeting that I had, people were amazed that I had made it from the U.S and they were excited that I (an American) had made the journey!  This told me that 1.) Americans were scarce at the show and 2.) that I was probably one of the few U.S. economic development representatives in attendance with the exception of states or regions that are represented with foreign offices in Europe.  In fact, despite some of our cancellations, I believe Indiana was well represented because the State’s European office (contracted through IEDC) had scheduled meetings beginning Monday, through this afternoon and had advised me on other contacts I should follow up with later in the week.  Working in collaboration with IEDC, I think we will definitely cover a lot of ground at this show. 

I am looking forward to tomorrow and another full day of scheduled meetings!

Also, just for fun, I thought I would share a video I found on YouTube from a company with a presence in the Indianapolis region that is the single largest exhibitor at Hannover Messe.


Ash Clouds Ain't Got Nothing on Indy Partnership: Hats Off to the Dutch!

Wednesday, April 21, 2010 by Kristie McKillip

European Trade Mission Mission
Day 1 - Arrival (Tuesday April 20th)
 
Hats off to the Dutch!
 
By now you may be aware that I was the only lucky Hoosier to be on the only flight leaving from the US to Amsterdam on Monday evening (as scheduled).  To top it all off, just before I boarded the plane in New York, I was notified by a Delta representative that they had given me a last minute seat change on the plane.  At first, I was a little annoyed because I had booked an exit row seat in coach, and anyone who has traveled internationally understands just how difficult it can be to secure an exit row seat with extra leg-room.  Of course, my annoyance completely evaporated when she told me that I would now be seated in FIRST CLASS.  Seriously!  What are the chances!?!?  If there are any Seinfeld fans out there, this was like "Elaine's bizarro world."  I had entered bizarro world!!!
 
So I arrived in Amsterdam around 9 a.m. on Tuesday morning feeling rested and completely invincible.  My luck couldn't run out, right?  I was so excited about what the next few days would bring -- considering my recent windfall of good fortune.  What would be next?  Maybe I would meet with a company considering immediate plans for expansion in the U.S.!  Maybe that company would be considering the Midwest!  Even better, maybe that company would be considering Indiana, in particular!  These were the "sugar plums" dancing around in my head!  Hey, don’t laugh -- I was in bizarro world!  Anything can happen in bizarro world.

Ahhh, but you may recall in the Seinfeld episode, your time in bizarro world is brief.  Remember how reality eventually came crashing down on Elaine?  So was my fate as well. 

Indeed, it was clear I had left bizarro world when the immigration officer at Schipol airport took one look at my passport and informed me that I could not enter the country without a valid passport.  To my horror, after taking a good look at my passport, I realized I had inadvertently picked up my old passport with my maiden name.  My current, valid, passport with my married name was safely stored away in my safe at home where I keep all important documents.  (As a side note, my husband has been evaluating our insurance policies and had been shuffling around in our safe a few days earlier -- which had to be why this old passport was on the top of the stack.  So you see, clearly this was my husband’s fault!).  Miraculously enough, I was able to get through JFK airport with an invalid passport that didn’t even match the name on my boarding pass.  Of course at that time, I was still technically in bizarro world where anything can happen. 

I couldn’t believe it!  I had come so far, conquering a volcano for goodness sake!  Now, I might be forced on a plane back to the US because I don’t have a valid passport.  I was the “last hope” for my Indiana colleagues who had all watched their flights get canceled one after another!  How could it end this way!?!?  Naturally, I began to feel sick.  How could an expert traveler like me let something like this happen? 

After valiantly pleading my case and explaining my dire situation (all the while holding up the line of other happy passengers who had their passports), the nice immigration officer kindly asked me to step out of line and report to the immigration services office.  “I am so sorry for you and I understand, but this is not a decision for me to make,” she said.  “You will have to ask my superior what we will do about this.”  I was devastated!  Not only was I letting everyone down by having to cancel all of our meetings after all, but I was also fearful that I might have to wait days for a returning flight to the U.S. under the circumstances.

The Dutch immigration officers were all very kind and extremely professional.  After hearing my very, sad story, they contacted a U.S. officer working at Schipol to provide guidance on the situation.  Sure enough, about 15 minutes later, I met Richard, (my saving grace/guardian angel) the U.S. immigration representative they had called to my rescue.  Richard made a few phone calls and was able to verify that I was, in fact, a U.S. Citizen by pulling up my current passport on his blackberry.  Then he made an impassioned request to our Dutch friends in the immigration office to consider granting me a temporary approval to enter the country so that I could apply for an emergency passport at the American Consulate’s office located in downtown Amsterdam.  They certainly did not have to help me.  In fact, there was about 90 minutes-worth of paperwork they had to prepare in order to grant me approval to enter the country.  They also had to prioritize my case so that I could make it to the Consulate’s office before they closed at 11:30 AM.    Otherwise, I would have had to stay in the Netherlands overnight and try again the next morning (which would have required me to cancel all of my appointments arranged on Wednesday in Hannover).  I was a truly touched by their willingness to help me.  Maybe I’m being nostalgic or a bit dramatic, but I got the sense they were all rooting for me in some way.  Certainly, they could have been doing it just to get me out of their hair, but it sure seemed like they really cared. 

Regardless of motive, the Dutch immigration staff all worked very diligently to process my paperwork and I was able to make it the U.S. Consulate’s office by 11:28 AM.  The staff there was phenomenal as well and they went above and beyond to get me processed.  Normally, you would have to make an appointment to apply for an emergency passport.  However, after explaining my situation and my business obligations, they made an exception for me and went ahead and processed my application immediately so that I would have time to get to Hannover and make my meetings the next day.  I was finally issued a valid, temporary passport at 3:00 PM -- just enough time to buy a train ticket and catch the next train from Amsterdam to Hannover, Germany.

I arrived in Hannover by train at approximately 9:30 PM.  What an adventure!  I will forever feel indebted to the fine people of Holland!  My hat is off to the Dutch.  We as Hoosiers are known for our hospitality.  However, I think the Dutch might just be giving us a run for our money!!! 

Mission Accomplished!

Sunday, October 4, 2009 by Kristie McKillip
Alas, after almost two weeks in Germany, on Friday evening (Oct. 2nd), I put my feet on U.S. soil once again.  Luckily, my travel back to the States went very smoothly (no delays and no cancellations....which can sometimes be rare these days)!  Nevertheless, I had quite a bit of time to reflect on the trip (approximately 12 hours when you count the time in flight and transfer between airports).  So, I thought it would be a good idea to write down a few observations from this mission - since I had so much time on my hands, anyway!

Overall, I think this was by far, the most productive trip I have ever taken to the Federal Republic of Germany.  It is important to remember these missions abroad are long term commitments that require continued follow up.  Between my previous employment at the Boone County EDC and now at the Partnership, I have been to Germany a total of five times (three of which have occurred in the last 12 months).  Again, to truly have a successful FDI attraction program, you have to make a long term commitment and you have to be consistent with frequent visits (at least 2 times per year).  You also have to be committed to frequent follow-up and touches throughout the year when you're not meeting with people face-to-face.  

Though I cannot disclose company names, I can say the majority of this trip consisted of company meetings.  This is very exciting because it is very difficult to get into meet with companies.  Most of the companies our group met with were medium-sized manufacturing companies in various stages of growth.  A few companies we met with will undoubtedly result in some form of investment in Indiana as they are much further along with their U.S. investment plans.  These companies have already been evaluating various locations in the U.S. and they were already somewhat familiar with our State and Region.  However, most of the company visits we made were very preliminary.  These prospects had little or no knowledge about the State of Indiana, let alone the Indianapolis Region.  Therefore, we accomplished our goal of raising awareness about the Region and our business advantages.  The good news is that we can continue to monitor these prospects throughout their growth continuum.  This means when they are ready to take the next step, we will already have a long-term relationship built with them.  Germany is no different than the U.S. in that people like to do business with people they know and trust.  As long as we can continue to foster a good relationship and provide useful and beneficial services to our new friends, it is all the more likely they will want to make their next move with us. 

In addition to company meetings, we filled in the rest of the trip with valuable meetings with industry trade organizations.  In Germany, industry organizations are very powerful and influential - much more-so than similar organizations here in the U.S.  For instance, in the State of Bavaria, there is an organization called Vereinigung der Bayerischen Wirtschafte (vbw) which represents the social, political and economic interests of its more than 1600 member companies in the electrical and metalworking sectors.  Vbw is an employer association in Germany that actually represents their member companies in collective bargaining agreements and other labor negotiations.  When you compare U.S. verses German manufacturing companies in the mid-sized range, German companies appear to be much leaner from an administrative and management perspective then their U.S. counterparts.  That is why employer organizations such as vbw are so important.  Their staff and experts (most of which are labor attorneys) actually step in and serve the needs of their members.  This frees up senior management to focus on running the business rather than being too involved in labor issues.  In addition to meeting with vbw, we also met with representatives from some of the following organizations: 
-IHK Munich (Chamber of Commerce and Industry)
-Network of Automotive Excellence (NoAE)
-American Chamber of Commerce (AmCham)
-VDMA Munich
-Ministry of Economics in Bavaria
-Strategic Partnership for Sensor Technology.   

Finally, our team attended four different trade shows in the last two weeks.  If there were moments of downtime, our group was walking the trade show floors at the European Photovoltaics Solar Show, MOTEK, Renexpo and FachPack.  Though we had little downtime on this trip, it is always smart to try and schedule a trade mission in conjunction with a major trade exhibition to ensure that you cover as much ground as possible.  These trade exhibitions are also very educational.  At these shows, you can really learn who the major players are in the industry and you can see first hand which companies may be launching new product lines.  

It has been a very hectic two weeks.  In that short amount of time, we met with 15 different companies, 10 industry/trade organizations and visited 4 trade shows across 11 German cities and towns.  Now, the hard work begins.  Now we must revisit our notes from our trip and follow up with our new German friends in a meaningful way that will add value to their operation.  If we can do that, then we can honestly say, "Mission Accomplished!"

 

Catching Up, Coming Home.

Friday, October 2, 2009 by Kristie McKillip
This trip has been a whirlwind. Everyday has been a new adventure of some sort, and because of difficulties with Internet service while I've abroad, I've had quite a difficult time updating this blog. While I'm now back in the USA, I've got a bit of a wait before my next flight, and thanks to airport WiFi, I'd love to bring you up to speed with the latter parts of my trip.


This is Mr. Herbert Koepplinger (Managing Director) for the Network of Automotive Excellence (NoAE) and I. The NoAE is an organization dedicated to finding new innovations for automobiles. They research problems in the automotive market and try to identify solutions with the goal of improving all aspects of the automotive manufacturing process. They work with all of the major automotive manufacturers in Germany as well as their suppliers.


This is a picture of our group with Mr. Burkhard Linke from the American Chamber of Commerce in Germany. They are one of the largest American Chambers in Europe. In the background of this picture is the Amerika Haus, home to many other chamber and industry-related organizations. This is also where several other states have their Germany outreach office located. 

Here our group is pictured in the TV studios of the Vereinigung der Bayerischen Wirtschaft (vbw). We met with Mr. Kelvin Strausman, Chief Economic and Diplomatic Advisor for North American Relations & International Economic Organizations. The vbw is a very powerful and influential organization in Bavaria. vbw essentially is an umbrella organization for most of the employer associations in Bavaria. They represent many of Bavarias companies during collective bargaining situations and through other labor issues. They also lobby on behalf of industry. Their network is extremely large. In fact, in our meetings with company CEOs throughout the week, we found many of them actually served on the Board of Directors for this organization. This will be a great contact in the future.


Another picture with Kelvin Strausman.  He is responsible for helping his member employers make connections and be successful in North America.


One of the great things about Germany is that this type of selection of freshly baked food can be found in any train station in Germany. We spend so much time in train stations on these trips, and are often eating on the run. The good news is that the train stations have some of the best and freshest food you'll find.  It is great (as far as eating on the run is concerned).

The last picture is our group on the train.  We spend a lot of time getting from place to place because we have to cover so much ground at one time.  This is a picture of an ICE train (one of the fastest in Germany).  As you can see, it is definitely geared to the business traveler.  They have a desk and plenty of room to work. Internet access is available (but it is always patchy due to the high speeds of the train).


I hope to share some more of my trip in the coming week. There were so many exciting observations to share!

Packing the Essentials for a Trade Mission

Tuesday, September 22, 2009 by Kristie McKillip

For anyone who travels frequently, you know there is a fair amount of strategizing when it comes to packing a suitcase. You don't want to pack too much, but you don't want to be left without your essentials. I think we all have our little traveling essentials, right? For me, especially when I travel to Europe, it is my comfy little black flats that go with any suit or outfit. I'm always running to my next appointment or trying to catch a train or a plane. Believe me, it is absolutely essential to have a great pair of shoes. I also have this great suit jacket that goes with anything - dress slacks, jeans - it's very versatile.

As you can probably tell by now, I take packing very seriously. Packing smart and thinking ahead means you're prepared (even for the unexpected). In fact, when I think about it, I have really been packing for this trip since mid-June (or really since last fall). Okay, so now you're really thinking I'm high maintenance! No, what I'm referring to is all of the planning and strategizing that has taken place up until now - all of the activities that go on BEFORE I pack my suitcase.

So I thought my first blog about this trip would be dedicated to the essentials. It is also a tiny peek into the process that we go through in preparing (or packing for) a business development mission.

1.)  Let your strengths be your guide.

Our primary strengths include our location, cost of doing business and workforce (among other strengths). Workforce is probably the most important. I always tell people that in Indiana, we make things and we make them well. Whether it's pharmaceuticals, vehicle engines or batteries, we have the manufacturing talent here that enables companies to be extremely competitive in the marketplace. So, we started with our strengths. Southern Germany is known around the world for its manufacturing base. The two German States of Baden-Wurttemberg and Bavaria (which basically make up all of southern Germany) are where Germany's major manufacturers are located -- including Daimler Benz, BSH Bosch, Siemens, BMW and EADS. High-tech companies account for nearly 60 percent of manufacturing employment in Bavaria alone. Though there are many large, global companies in this region, there are also a lot of small to mediums sized manufacturers that have not yet made investments in the U.S., or they may have a small sales presence only. These are the companies we want to engage.

2.)  Do your homework.

After evaluating our strengths and applying that value chain to a specific region, I then turn to our research staff. Our research department at Indy Partnership has several databases they subscribe to that track and compile data on companies around the globe. Their sources for a company's revenue growth, employment, recent investments and other important details coupled with their data analysis help me to develop a quality prospect list.

3.)  Leverage all resources and partners assets.

Partners are critical. Our targets and search criteria are less effective if we don't seek input and cooperation from other partners engaged in the similar activities with the similar goals. When working in Germany (or anywhere else outside of the U.S.), it is important to engage our state of Indiana partners with the Indiana Economic Development Corporation. Through their international office in Berlin, Germany, IEDC officials help us with outreach and securing meetings abroad. They also give us important, on-the-ground feedback about our targets. In addition to our resources at IEDC, we reach out to the private sector (our investors, stakeholders, existing industry base) and our world renowned universities who are also engaged with global players and global initiatives.

4.)  Bring something valuable to the table.

At the Indy Partnership, we like to pride ourselves on providing not just good information, but information customized to our customers and their needs.  This requires us to know a lot about our customers before we even walk into meetings. It requires us to find the messages and information that are specific and will be most important and compelling to our target clients. It also requires us to be good listeners and follow up in a timely fashion.

Any business development trip, whether it be domestic or abroad takes a lot of preparation and a lot of hard work. It is a continual process that you have to keep building upon.

European Trade Mission Essentials:
 

  • Comfy black flats - $40;
  • Stylish, Versatile Suit Jacket - $120;
  • Flying to Germany with the peace of mind that you're prepared and ready to meet your customers - Priceless

FOLLOW ME IN GERMANY ON TWITTER


And here's a fun picture I found when I did a simple Google images search for "packing suitcase." Some things simply MUST be shared!