Globalization rethought: US experts asked – focus on expansion in the US market – production in the USA?

🚀🔧 After Donald Trump's surprising election victory and the political confusion in Germany, many companies are reconsidering their involvement in the USA and are considering intensifying their activities on the American market.

Even before Donald Trump was officially sworn in as President of the United States, numerous German companies were planning to increase their presence in the USA. Demand for U.S. professionals skyrocketed, particularly for specialists in finance, manufacturing relocation and supply chain management.

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• Mechanical engineering and industry: Looking for US experts? Focus and expansion in the US market

💢📉 Drastic import duties are alarming German medium-sized businesses

The significant increases in import tariffs announced by Trump have alarmed parts of the medium-sized manufacturing industry in Germany, especially those with significant business relationships in the USA. In combination with the prospect of tax relief for companies in the USA, German companies are increasingly examining whether relocating production to the United States is economically worthwhile. Experts in such strategies are rare and the demand for them is correspondingly high.

First of all, companies need to get a comprehensive overview and develop possible action plans. Although no final decisions have been made about relocating production after Trump's victory, many industrial companies have been consulting experts such as Xpert.Digital for over a year to evaluate the potential of relocating production abroad.

🎉🤑 Euphoric mood about the US business outlook?

There is at least a positive attitude in the upper echelons of the German economy about the future prospects in the USA. Many see the announced economic policy measures as an opportunity for a boom and want to take part in it. The decision-makers are aware that this can be achieved most effectively if you present yourself locally as a “good citizen” with your own production. However, such investments must be planned and profitable over the long term, beyond the term of a single president.

At the same time, however, there are companies that fear for their US business because they are wary of the risks of building up production in an uncertain political climate. Therefore, medium-sized companies often consider the formation of production communities. Companies that are not in direct competition with each other are considering venturing into the USA together. Experts like Xpert.Digital & Partner are ideal cross-company project managers to coordinate such collaborations.

❓🔗 Skepticism towards global logistics and supply chains

The US-specific considerations come at a time when many companies are increasingly skeptical about global logistics. The uncertainties in international supply chains, exacerbated by political imponderables and trade conflicts, are causing more and more companies to switch to a strategy of producing their products where they are sold. In this context, Donald Trump's election victory offers an opportunity to think about starting production in the USA.

🆕🏭 New opportunities through local production

Moving production to the US not only offers advantages in terms of tariffs and taxes, but also allows companies to be closer to customers. Local production can lead to shorter delivery times, better customer service and a stronger brand presence. Companies can also benefit from government support programs and a large labor market.

⚠️📈 Challenges when relocating production

Despite the tempting opportunities, relocating production comes with significant challenges. Companies must invest in new facilities, observe legal frameworks and take cultural differences into account. It requires careful planning and experienced experts to make the transition successful.

🤝🔗 Strategic partnerships and collaborations

In order to minimize risks, many companies rely on strategic partnerships and collaborations. Through joint ventures, resources can be pooled and market knowledge can be shared. This enables more efficient market entry and increases the chances of success in the US market.

🔍🌱 Long-term perspectives and sustainability

A long-term perspective is essential for successful expansion. Companies should not only take short-term political developments into account, but should also align their strategy with sustainable growth. This includes investing in people, technology and innovation to remain competitive.

🕵️‍♂️📊 The role of experts and consultants

In this complex phase, experts and consultants are invaluable. You support companies with market analysis, strategic planning and the implementation of projects. Their expertise helps to avoid pitfalls and ensure the success of the expansion.

🔑🌟 Key to future success?

The US market offers German companies significant opportunities, particularly in mechanical engineering and industry. Despite political uncertainties and challenges, many companies see expanding their US activities as a key to future success. With careful planning, collaboration and the support of experienced experts, you can set the course for sustainable growth and benefit from the potential of the American market.

📣 Similar topics

• 🌍 Economic restart: US market in focus
• 🔎 Demand for US experts is increasing rapidly
• 🚨 Import duties are disrupting German medium-sized businesses
• 🎉 Euphoria about US economic prospects
• 🤝 Cooperations as a strategy in medium-sized businesses
• 📦 Skepticism about global supply chains
• 🌟 Advantages of local production in the USA
• ⚖️ Challenges of relocating production
• 🔗 Strategic alliances for market entry
• 📈 Long-term success through sustainable planning

#️⃣ Hashtags: #Mechanical engineering #Industrial market #Production relocation #US market #Strategic partnerships

B2B trading platforms - Strategic planning and support with Xpert.Digital - Image: Xpert.Digital

Business-to-business (B2B) trading platforms have become a critical part of global trade dynamics and thus a driving force for exports and global economic development. These platforms offer significant benefits to companies of all sizes, particularly SMEs – small and medium-sized businesses – which are often considered the backbone of the German economy. In a world where digital technologies are becoming increasingly prominent, the ability to adapt and integrate is crucial to success in global competition.

More about it here:

• Business-to-Business (B2B) trading platforms

🏭 1. Reassessment of production locations: reshoring

The relocation of production facilities back to the USA, also known as reshoring, has become increasingly important. This trend is driven by several factors:

Supply chain resilience

The disruptions in global supply chains, particularly during the COVID-19 pandemic, have shown how vulnerable long delivery routes are. Companies and the government are therefore focusing on relocating production in order to increase security of supply and reduce dependencies.

Job creation

Reshoring has the potential to create numerous jobs. It is estimated that over 260,000 jobs have been created by reshoring in 2021 alone. This not only strengthens the local economy, but also local communities.

💡 2. Technological innovation and automation

The USA is increasingly relying on technological innovations such as automation and artificial intelligence (AI) to increase its competitiveness:

automation

Given the shortage of skilled workers, automation is increasingly seen as a solution to make production processes more efficient. Particularly repetitive or dangerous tasks are automated, which simultaneously increases productivity and frees up workers for higher-value tasks.

Artificial intelligence

AI plays a key role in optimizing manufacturing processes through predictive maintenance and quality controls. These technologies help reduce costs and minimize production downtime.

🏡 3. Strengthening local markets

US companies are increasingly focusing on the domestic market:

Local demand

The US market is one of the largest in the world. A greater focus on local needs could provide growth opportunities while reducing dependence on international markets.

Regional development

Targeted investments in less developed regions could reduce economic imbalances.

📈 4. Trade policy strategies

The new US administration will pursue a realignment of trade policy:

Trade agreement

During Donald Trump's first term in office, his trade policy was “America First,” which led to a protectionist orientation. This policy aimed to renegotiate trade agreements, increase tariffs and strengthen the domestic economy.

Customs policy

There are efforts to promote domestic production through tariffs or tax incentives. This could particularly play a role in the context of trade conflicts with China.

Reshoring in Focus: America's New Globalization Strategy

The US will pursue a more domestically oriented globalization strategy, emphasizing reshoring and technological innovation. These approaches attempt to combine national interests with international cooperation, but this also poses challenges - particularly with regard to the cost structure and the shortage of skilled workers.

🛍️🛒 Trump's trade policies during his 1st term

Trump's trade policy during his first term focused heavily on bilateral negotiations, attempting to use tariffs to pressure partner countries to negotiate better terms for the United States. However, this policy also led to trade conflicts and retaliation from other countries.

Here are some of the key trade agreements and policies implemented during his presidency:

🚫 1. Withdrawal from the Trans-Pacific Partnership (TPP)

Shortly after taking office, Trump withdrew from the Trans-Pacific Partnership (TPP), a free trade agreement with 12 countries in the Asia-Pacific region. This agreement was intended to reduce trade barriers, but Trump saw it as detrimental to the US and favored bilateral agreements.

🤝 2. Renegotiation of the NAFTA agreement: USMCA

A central element of his trade policy was the renegotiation of the North American Free Trade Agreement (NAFTA), which he viewed as unfair to the United States. The result was the United States-Mexico-Canada Agreement (USMCA), which came into force in 2020. Among other things, this agreement strengthened labor rights and increased the share of parts in the automotive industry produced in North America. It was seen as more modern and balanced to make trade in North America fairer.

🏯 3. Phase One deal with China

As part of the trade war with China, Trump imposed a series of tariffs on Chinese imports to crack down on unfair trade practices. This led to a so-called phase one deal in 2020, in which China committed to buying $200 billion worth of US products. Structural reforms in areas such as intellectual property and technology transfer were also agreed.

🔨 4. Tariffs on steel and aluminum

Trump imposed tariffs on steel (25%) and aluminum imports (10%) in 2018 to protect domestic industries. These tariffs also affected close allies such as the EU, Canada and Mexico, leading to retaliatory tariffs from these countries. Tariffs were later lifted for Canada and Mexico under the USMCA agreement.

🇯🇵 5. Trade agreement with Japan and South Korea

Trump also signed new trade deals with Japan and South Korea. The agreement with Japan facilitated market access for US agricultural products and strengthened digital trade. New terms were also negotiated with South Korea to improve access for US cars.

📣 Similar topics

• 📈 Trump's bilateralism: New US trade strategy
• 🏛️ Withdrawal from the TPP: A controversial step towards self-determination
• 🤝 USMCA: A more modern NAFTA for fair trade in North America
• 🔥 Trade war with China: The phase one deal as a result
• 🛡️ Tariffs on steel and aluminum: protecting domestic industry
• 🌾 Trade agreement with Japan: Benefits for US agriculture
• 🇰🇷 South Korea agreement: Improved access for US cars
• 📊 Tariffs and retaliation: potential for conflict in Trump's trade policy
• 🌍 Withdrawal and realignment: Trump's approach to international agreements
• 🧩 Structural reforms through the phase one deal: progress in trade with China

#️⃣ Hashtags: #Trade Policy #Tariffs #Free Trade Agreement #USMCA #ChinaDeal

☑️ SME support in strategy, consulting, planning and implementation

☑️ Creation or realignment of the digital strategy and digitalization

☑️ Expansion and optimization of international sales processes

☑️ Global & Digital B2B trading platforms

☑️ Pioneer Business Development

Konrad Wolfenstein

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