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