Companies Say Germany is Top Business Location

International companies have not only ranked Germany as the top attractive country for business in Europe, they placed it at number three worldwide.

The business consulting firm Ernst & Young conducted the survey of 1,000 different companies, who put only the United States and China on the list before Germany in the worldwide comparison.

"People often underestimate Germany. It's often Germans themselves who do so," said Dag Valand, Managing Director of a Norwegian high-tech company called Wavetech. "There are many things in the country that businesses find attractive, like a stable economic system and sound judicial system."

While Valand's company does not produce in Germany, the businessman said it is an appealing location for research and development right up to the first steps of production. "And you can manage your company from here," Valand said.

"You know what you are dealing with"

Wavetech is a very small company, with only five employees. Two work in Norway, the other three near Bonn. While they founded it in Norway in 2003, they set up their German office to help the company grow quickly. Of all the countries in Europe, Germany was the most convincing place for a second location.

"Germany is more cost-effective than in Norway," Valand said. "We save more here in research and product development."

He said his company's order books in Norway are full and the economy is strong. In Germany, the situation is different. "Here, the companies we work with drool over contracts, so we can work faster and more cheaply in Germany than in Norway," he said.

Klaus Bauer, managing director of the German branch of Chep, an Australian logistics company, also speaks highly of Germany.

"Germany is one of the leading economic powers in Europe," Bauer said. "Since we lie right in the middle of Europe, we are not just a kind of 'go-between,' but we can also move a great deal of material. Germany is known for being up on things, well-organized and very innovative. We can't let a market like that slip through our fingers," he said.

In addition, Bauer said: "You know what you're dealing with in Germany. Sure, the country is known for being very orderly. But for a business, that's a good thing. You can calculate everything beforehand and are not met with unpleasant surprises later."

Study says "Made in Germany" seal still holds clout

Valand said it is always advantageous when a product is marked with the "Made in Germany" seal. "If the research and development are done here, then the product is high-quality. And, the people are reliable and trustworthy," he added.

Respondents in the Ernst & Young survey agreed, and said the good infrastructure, the quality of research and development, well-trained workers and a strong domestic market are Germany's strengths as an economic hub.

Still, said Bauer, "it would be better for us as employers if we could respond more flexibly to the demands of the market."

That is why the United States tops the list in the Ernst & Young study; businesses can react more quickly to market requirements. China stands at number two worldwide in the study because companies that stress paying low wages still prefer to produce in China, India or Eastern European countries rather than in Germany.