GERMAN AMERICAN TRADE - GACC Midwest€¦ · Thomas Topp from Heidelberg USA, Inc.: ... Wacker Chemie AG to build solar ... GERMAN AMERICAN TRADE APRIL 09 6

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G E R M A N A M E R I C A N

The Answer is Blowing in the Wind

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“BUY AMERICAN”GAINING GROUNDObama Tries to Contain Damage

Putting the Stimulus to Work for your Company

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German AmericanChambers of CommerceDeutsch-AmerikanischeHandelskammern

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Each Lange watch is one-of-a-kind.Just like the people who craft it.

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T R A N S A T L A N T I C T I C K E RGerman American Company News 4

C O V E R S T O R Y“Buy American” Gaining Ground Obama tries to contain damage 6

B U S I N E S S T O O L SPutting the Stimulus to Work for your CompanyThe American Recovery and Reinvestment Act 10

S P O T L I G H T STwo Similar Missions: Germany Trade & InvestThe New Foreign Trade and Investment Agency of the Federal Government 12

Time to Share: Stimulus Package Funding RepresentsUnprecedented Opportunity for U.S. Energy Efficiency 14

Renewable Event Calendar 16

S P E C I A L R E P O R TThe Answer is Blowing in the Wind 18

D R E A M C A T C H E R SDahlhaus Lighting, Inc. 22

E V E N T C A L E N D A RFuture Events & Delegations 27

P A S T G A C C E V E N T SPast GACC Events: March 2009 28

B O A R D T A L KThomas Topp from Heidelberg USA, Inc.:How does the economy affect the printing industry? 30

Buy American?Our cover story “Buy American” is surely a topic you want to

stay on top of, since it might affect not only German subsidiaries

in the United States but also U.S. companies involved in inter-

national business. The article discusses the various pros and cons

that lead to the final amendment in the stimulus package.

On the lighter side, read about Lars Dahlhaus, a GACC mem-

ber who came to the United States to fulfill his dreams about

building his own business. He established a subsidiary of his family’s lighting busi-

ness in Brooklyn in 2000. Lars started with a simple web site working from home and

now is planning to open his first store.

Old but new - the foreign trade and investment agency of the federal government of

Germany re-introduces itself under the new name of Germany Trade and Invest

(GTaI). GTaI’s international team works closely with the German Chamber network

(AHK’s) to provide current economic information and consulting services to

German exporters, as well as foreign investors interested in the German market.

How do you weather the storm? - Thomas Topp, Senior Vice President, Finance for

Heidelberg USA, Inc. describes in the Board Talk section the adjustments his company is

making in order to deal with the present economic situation affecting the printing industry.

E D I T O R I A L

C O N T E N T S

Barbara [email protected]

Exclusive cartoon by Heiko Sakurai www.sakurai-cartoons.de


Henkel takes German top spot

According to the annual surveyconducted by the American busi-ness magazine Fortune, Henkel isGermany’s most admired compa-ny. The Fortune ranking of the“World’s Most Admired Compa-nies” is one of the most renownedcorporate rankings worldwide.On the international front, more-over, Henkel took second placebehind Procter & Gamble in the“Soaps and Cosmetics” category.• WebNewsWire

Zetsche sees no role for Daimler in Opel’s future

The chief executive of DaimlerAG dismissed suggestions that his

company could take over AdamOpel AG, a wholly-owned sub-sidiary of General Motors Corp.“We don't see a role for Daimlerin the future development ofOpel,” Dieter Zetsche toldreporters on the sidelines of theGeneva auto show. The fate ofOpel has been in the balancesince ailing U.S. parent companyGM proposed loosening ties andmaybe even spinning off the Ger-man subsidiary. The Germangovernment said it would not bepushed into a hasty decision overwhether or not to give Opel 3.3billion euros ($4.2 billion) instate aid. • International Herold Tribune

Bertelsmann bought Berkeley’s Ten Speed Press

Berkeley lost a legendary inde-pendent publisher when Germanmedia giant Bertelsmann AGbought Ten Speed Press throughits New York-based publishingunit Random House. The onebright light in the sale is news thatthe company will keep most of itsexisting operations and staff inBerkeley. News of the sale came ina joint announcement by threepublishers: Ten Speed founder andpresident Philip Wood, RandomHouse president and CEOMarkus Dohle and Jenny Frost,president of Crown PublishingGroup. Ten Speed and its label willbe operated as part of Crown, aRandom House subsidiary. Thesale includes all four of Ten Speed’simprints: Ten Speed Press, TricyclePress, Celestial Arts and CrossingPress. Terms of the sale were notincluded in the announcement.• The Berkeley Daily Planet

SAP aims to slash greenhouse gas emissions

Software giant SAP AG plans tocut its greenhouse gas emissionsin half during the next decadeas part of a broad sustainabilityinitiative. The Walldorf, Ger-many-based company is strivingfor a 51 percent reduction of itsdirect and indirect emissions ofcarbon dioxide and other heat-trapping gases by 2020. SAP,which makes process-manage-ment software for businesses,does not plan to buy carbonoffsets to negate direct emis-sions stemming from energyconsumption by data centersand other large operations,underscored Daniel Schmid,who heads up the company'ssustainability efforts. SAP joinsother major IT firms that arehoping to both clean up theiract and capitalize on regulationof greenhouse gas emissions inthe United States and abroad. • The New York Times

Wacker Chemie AG to build solarproducts plant near Chattanooga

Wacker Chemie AG, a Germanmanufacturer of the basic materi-al used in solar-energy cells, willbuild a $1 billion plant nearCleveland, TN, providing an ini-tial 500 to 600 jobs. It’s expectedto begin producing the material –polycrystalline silicon, alsoknown as polysilicon – sometimein 2012. It’s expected to beginproducing the material – poly-crystalline silicon, also known aspolysilicon – sometime in 2012. •The Tennessean

A D V E R T I S E M E N T


Deutsche EuroShop AG expandsstake in Developers Diversified

Developers Diversified Realty,which owns several Milwaukee,WI, shopping centers and is co-developer of a proposed center atPabst Farms in Oconomowoc,said it has entered into an agree-ment with European malldeveloper Alexander Otto for asale of 30 million shares to Ottoand members of his family.Alexander Otto and other mem-bers of his family are the ownersof ECE Projektmanagement ofGermany, a developer and man-ager of inner-city shoppingcenters. ECE manages 111 mallswith a total sales area of approxi-mately 37 million square feetand is active in 15 central andeastern European countries. Inaddition, Alexander Otto is thelargest shareholder of the Ger-man company DeutscheEuroShop AG, which owns 16shopping centers with an assetvalue of over $2 billion and mar-ket capitalization of more than$900 million. • Business Journal

Mark VII Equipment Inc. acquires Michigan assets of German WashTec subsidiary

Mark VII Equipment Inc., theUS subsidiary of WashTec AGof Germany, the leading suppli-er of innovative solutions forthe carwash business world-wide, announced that it haspurchased the Michigan assetsof PDQ distributor WashingEquipment Technologies.Founded in 1966 and head-quartered in Arvada, Colorado,

Mark VII is a wholly-ownedsubsidiary of WashTec AG ofGermany, the leading supplierof innovative solutions for thecarwash business worldwide.• PressRelease

Hohenstein Institute opens its U.S. office in Elon, N.C.

An international research andtesting group that helps textilecompanies develop specializedproducts has opened its U.S.headquarters in Elon, N.C.Hohenstein Institute, a Germanresearch firm, has hired formertextile executive Sam Moore,who will work alone to developthe company’s business in theUnited States. Hohenstein's mis-sion is to help textile and apparelcompanies take their projectsand products way beyond thesimple fabrics of the past.Through the German researchcampus, it will help client com-panies to develop and test newideas through chemistry,biotechnology and other scienceapplications usually found onlyin research universities. • McClatchy-Tribune

123map signs patent licensing agreement with Microsoft

The German-based companywill use licensed patented tech-nology to provide faster,low-cost vector-based maps totheir customers. MicrosoftCorp. and 123map GmbH &Co. KG, announced a patentlicensing agreement that willenhance 123map’s ability tobring digital point-of-interest

mapping technology to its cus-tomers. The intellectualproperty (IP) licensing agree-ment with Microsoft willenable 123map to useMicrosoft’s patented innova-tion to overlay information ona map image corresponding toa place of interest, enrichingthe geographical informationon the maps. 123map GmbH& Co. is a supplier of highquality geographical servicesfounded in Hanover, Germanyin September 2004. • Fox19.com

GPC Biotech AG and Agennixannounce proposed merger

GPC Biotech AG and Agennix,Incorporated announced that thetwo oncology-focused biotech-nology companies have signed aBusiness Combination Agree-ment under which they proposeto merge their businesses. TheBusiness Combination Agree-ment provides that GPC Biotechwill merge onto a new Germancompany which will hold allAgennix shares and a cash contri-bution by dievini Hopp BioTechholding of approximately $15million. The new company willfocus on the development of newanti-cancer therapies. GPCBiotech AG is headquartered inMartinsried/Munich (Germany)and has a wholly owned U.S.subsidiary in Princeton, NJ. • Ad Hoc News

G E R M A N A M E R I C A N T R A D E A P R I L 0 9

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When it comes to protec-tionism, Congress and theAmerican public essential-

ly agreed that purchasesgenerated by the $787 billionstimulus package are to be con-fined to the extent possible toproducts “Made in the USA”.The decision by Congress to con-sider international obligations inthe application of “Buy Ameri-can” provisions has provedsomewhat of a relief to signato-ries of the WTO agreement andto trading partners worldwide.

Nevertheless, the conspicuouslygrowing mood for protectionismin the United States continues tocause concerns. Companies out-side the United States have to be

ready to cope with intensified“Buy American” policies. A pollin early February on “Buy Amer-ican” provisions in the stimuluspackage conducted by the protec-tionist-oriented Alliance forAmerican Manufacturing (AAM)showed that 84% of those sur-veyed favored such regulation.Only 11% rejected “Buy Ameri-can” constraints; the remaining5% were undecided.

“Buy American is a good deal fortaxpayers and workers,” declaredScott Paul, head of the AAM,“U.S. taxpayers understand theissue at hand. Buy American islongstanding U.S. policy and con-sistent with our internationaltrade obligations.” Even if the

AAM poll appears to be tenden-tious, there is agreement that thelarge majority of the Americanpublic favors protectionist meas-ures. Within the framework of abroader study, the “Pew ResearchCenter” also gauged attitudestoward “Buy American”. Two-thirds of all those surveyed were ofthe opinion that this precept was a“good idea which protects jobs inthe United States.”

Republicans oppose "Buy American"

During the debate about the stim-ulus bill in the Senate, JohnMcCain, the former presidentialcandidate, tried to get a provisionpassed against “Buy American”.The vote failed 31 to 65; three sen-ators abstained; one Senate seat is

“Buy American”Gaining GroundObama tries to contain damage

C O V E R S T O R Y

By Robert Espey, GTaI, Washington


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C O V E R S T O R Y

still vacant. All 55 Democrats pres-ent for the vote, Bernie Sanders,the independent Senator from Ver-mont, and nine Republicans votedagainst eliminating the “BuyAmerican” clause.

The drastic rise in unemploy-ment leaves little room for soberevaluations of the advantages anddisadvantages of open markets.Since the start of the recession3.6 million jobs have alreadybeen lost and experts predict thatduring the course of the year anadditional 1.5 to 2.0 million willfall victim to the economic crisis.Forecasts indicate that the unem-ployment rate will rise in 2009 toan average of 8.3% (2008: 5.8%)and is expected to deteriorate fur-ther in 2010 to 8.7%; you haveto go back as far as 1982/83 forstill higher rates.

Political leaders who nowadayswant to raise their profile by call-ing attention to obligationsincurred under internationalagreements when spending tax-payers’ money on advantageousbids offered by foreign-basedcompanies, have to expect beingpunished by voters. Despite thisrisk most Republicans in Con-gress still tend to defend free tradeand argue that more jobs will becreated by intensified exports.

Steel lobby provided the decisive impetus

Apparently the majority in theHouse of Representatives supports“Buy American” more decisivelythan the Senate does. The vitalimpetus for the inclusion of a

“Buy American” clause in thestimulus package was triggered byRepresentative Peter Visclosky ofIndiana, leader of the steel lobbyin the House. Visclosky proposeda regulation, confined however toiron and steel, to the responsiblecommittee. It passed the proposal55 to 0, thus also with the

approval of Republican memberson the committee. Following the vote Viscloskydeclared: “Our steel mills areoperating under capacity, ready tomake the steel we need to rebuildAmerica. Buying all our steel fromdomestic producers will sendsteelworkers back into the mills,adding to the benefits of the infra-structure projects. (...) I firmlybelieve that my amendment willgive the economic stimulus pack-age the broad, lasting impact onour workers and our economythat it needs to. If we going toexpend such a massive sum ofmoney, it must be spent on Amer-ican products and workers.”

Expanded final version

The Senate adopted essentially the“Buy American” regulation asapproved by the House, butexpanded its application to allprocessed goods. Fierce protests,particularly from the EU andCanada, led to an amendmentwhich insists on observing interna-tional obligations: The “BuyAmerican” regulation “shall beapplied in a manner consistent withUnited States obligations underinternational agreements.” TheSenate version was then adopted inthe final stimulus package.

Obama’s position vague

Initially President Obama did notwant to take a position on the“Buy American” issue. He let it beknown: “We’re reviewing the pro-posal, and we are committed to aplan that will save or create threemillion jobs including jobs inmanufacturing.” Then Obamaissued a warning on violatinginternational obligations of theUnited States and trade conflictsthat may arise as a result, but hedid not advocate banishing the“Buy American” clause. Duringthe presidential elections Obamapromoted his candidacy in indus-trial regions with the slogan “BuyAmerican, Vote Obama”.

The final version of the regulationwas welcomed by the Obamaadministration. “I think where weended up with the Buy Americaprovision is the right compromisethat respects Buy American lawsthat we’ve had on our books formany, many years while also

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ensuring that the language doesn’tcreate unnecessary trade disagree-ments in a time of economiccrisis,” said Robert L. Gibbs, thePresident’s spokesman. On his vis-it to Ottawa on February 19,2009 Obama assured the Canadi-an Prime Minister StephenHarper that the “Buy American”clause in the stimulus package didnot represent a detriment to trade.

Principles and exceptions

Despite Washington’s commit-ment to its internationalobligations, many observers talkabout dangerous signals set by the“Buy American” provision. Afterall, the basic principle of protec-tionism, “American taxpayers’money only for American goods”,is being applied. Sherrod Brown,the Democratic Senator fromOhio, commented: “It affirmsthat when we can, we should useU.S. tax dollars to create U.S.

jobs.” Respect for internationalobligations was merely added asone of four exceptions. Productsof foreign origin can also be usedif (1) it is “in the public interest”,(2) domestic products are notavailable in sufficient quantitiesor quality, or (3) if the price dif-ference exceeds 25%.

U.S. companies also issue warnings

“Buy American” discussions havenot only alarmed foreign compa-nies. Sectors of U.S. business arealso warning that the “wrong sig-nals” are being sent. Especiallycompanies strongly committed tointernational business fear thatnegative reactions will impact theirexports. Moreover American firmswhich supply products made out-side the United States, could –depending on the location of theirproduction site – be victimized by“Buy American” discrimination inthe award of public contracts. In

accordance with “Buy American”regulations, products are definedas locally produced if at least 50%of the contents are made in theUnited States.Under the leadership of the U.S.Chamber of Commerce (USCC)numerous business associationshave protested against the “BuyAmerican” clause. Thomas J.Donohue, USCC president,indicated: “Some have slammed

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Sec. 1605. Use of American Iron, Steel, and Manufactured Goods.

(a) None of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States.

(b) Subsection (a) shall not apply in any case or category of cases in which the head of the Federal department or agency involved finds that

(1) applying subsection (a) would be inconsistent with the public interest;

(2) iron, steel, and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

(3) inclusion of iron, steel, and manufactured goods produced in the United States will increase the cost of the overall project by more than 25 percent.

(c) If the head of a Federal department or agency determines that it is necessary to waive the application of subsection (a) based on a finding under subsection (b), the head of the department or agency shall publish in the Federal Register a detailed written justification as to why the provision is being waived.

(d) This section shall be applied in a manner consistent with United States obligations under international agreements.

A M E R I C A N R E C O V E RY A N D R E I N V E S T M E N T A C T O F 2 0 0 9 B U Y A M E R I C A N


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the U.S. Chamber for opposing“Buy American” provisions,calling our position “economictreason”. Try economic patri-otism. Such provisions wouldcost American jobs, triggerretaliation from our tradingpartners, slow economic recov-ery by delaying shovel-readyinfrastructure projects, and cedeour leadership role as a long-standing proponent of free andfair trade and global engagement.“Buy American” casts tradingpartners as enemies, which isabsurd. Foreign firms employover five million Americans atgood wages, for a total payroll ofmore than $350 billion. Folksoutside the Beltway (Washing-ton, DC) understand this. Infact, state governors competeintensely to attract the next Toy-ota or Siemens facility.”Concerning this issue a letter hasbeen sent to the U.S. Congress byfifteen major US business associ-ations urged to avoidtrade-restrictive mandates in theARRA. It was also undersignedby the Representative of GermanIndustry and Trade in Washing-ton, Mr. Bernhard Welschke.They are convinced that “theright thing to do domestically isto keep America’s markets freeand open [...] in terms of stimu-lating the US economy.”

“Buy American” is a matter of tradition

Defenders of “Buy American”policies point out that it is a nor-mal practice to give preferentialtreatment to domestic suppliers inthe United States. Since 1933

when the “Buy American Act” wassigned by President HerbertHoover, federal agencies have beenobligated to buy American prod-ucts. However, the application ofthe “Buy American Act” has beenrestricted substantially, among

others, by the “Trade AgreementsAct of 1979” by GPA [Govern-ment Procurement Agreement]and various free trade agreements.

Other “Buy American” regulations

In addition to the “Buy Ameri-can Act” there are numerousrestrictions placed on foreignsuppliers at the federal level aswell as by states and communi-

ties. These particular limits arenot covered by GPA or therules of free trade agreementsor specifically excluded. Special “Buy American” pro-visions apply to certain

products for projects, amongothers, financed in part withfederal assistance and conduct-ed under the auspices of theFederal Transit Administration(FTA), the Federal HighwayAdministration (FHWA) andthe Federal Aviation Adminis-tration (FAA).

Projects by these agencies andtheir financial support are subjectto strict “Buy American” regula-

tions. In the case on FTA undFAA projects, iron and steel andother processed products areincluded, although for trans-portation vehicles (busses, trains,etc.) a lower “local content” isrequired. The FHWA specifiesdomestic purchases of iron andsteel; products made out of ironand steel may be manufacturedabroad but with American ironand steel.

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GAT

‘Buy American’ casts our trading partners as

enemies, which is absurd.Thomas J. Donohue,

USCC president


A Bill Becomes Law

On February 17, 2009, PresidentBarack Obama signed into lawthe American Recovery andReinvestment Act of 2009.This truly historic Actamounts to the largest one-time domestic spendingprogram in United States his-tory and provides for US$212billion in tax relief and US$575billion in new federal spending.

The Economic Stimulus is Law- Now What?

With the American Recoveryand Reinvestment Act of 2009written into law, the hard workof implementation has begun.The intent of the legislation is toprovide federal funding as quick-ly as possible to create jobs andreinvigorate the staggering econ-omy. In fact, 75% of thespending is expected to be com-pleted before the end of 2010.

All indications are that Stimulusfunding will be distributed quick-ly to maximize its impact on theweak U.S. economy. Companiesprepared to move quickly andwhich have identified Stimulus

funding opportunities closelyaligned with their strategic priori-ties will be the most successful insecuring Stimulus funding.

How Will the Billions Be Distributed?

The US$575 billion in stimulusspending includes grants andincentives. Some of the grantswill be dispersed by individualU.S. agencies (such as the Depart-ment of Energy or Department ofCommerce) using a competitiveapplication process. The othergrant funds will be passed onfrom federal agencies directly tostates. These states each have theirown procedures to allocate the

funds to businesses and organiza-tions according to specific stategoals and priorities. The Act alsoprovides billions for tax relief for

individuals, businesses andstate and local governments.

Now that President Obamahas signed the bill, individualfederal agencies have a maxi-

mum of 60 days to formulatea specific plan on dispersal of

the stimulus funds. LNE Groupanticipates notifications of grantavailability to be made as early asApril, followed by awards ofgrants beginning in Summer2009 to make a swift impact onthe country and economy.

Are German Companies Eligible for Stimulus Funding?

Foreign-owned companies are eli-gible to receive funds from the Actas long as the projects funded areexecuted in the U.S. Thus, anyGerman company that manufac-tures or performs research anddevelopment work in the U.S. iseligible. Additionally, researchprojects carried out at U.S. aca-demic institutions in cooperationwith German companies are eligi-ble to receive funding.

B U S I N E S S T O O L S


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Putting the Stimulus to Work for your CompanyThe American Recovery and Reinvestment Act

By Lee C. Weingart

President, LNE Group


For Which Industries are Stimulus Funds Available?

The Stimulus Bill includes fundsfor a diverse range of industries andservices: From renewable energy, toscience and research, education andjob training as well as health care,internet/broadband and infrastruc-ture. Additional details can befound at recovery.gov.

How can Businesses Submit GrantRequests with Federal Agencies?

Links to information regardingeach federal agency’s stimulus plancan be found at the individualAgency Recovery Sites conve-niently linked off the recovery.govwebsite. When the agenciesannounce specific plans for Stim-ulus funding disbursement,businesses will have the opportu-nity to submit applications.

How can Businesses Access StimulusFunds at the State Level?

Because each state’s allocationprocess differs, it is best to checkwith the individual states. Inmany states, projects can be sub-mitted in advance at the webaddress: recovery.[NAME OFSTATE].gov. Thus, the State ofOhio's is recovery.ohio.gov andIllinois is recovery.illinois.gov.

How should Grant Applications be Prepared?

Writing grants to secure fundingfor for-profit businesses is a highlyspecialized discipline, much likewriting a business plan. However,writing winning business grants forgovernment funding is more an artthan a science. Organizationalcapabilities and strategic directivesmust align with the fundingagency’s objectives. Projects mustbe properly packaged to precise cri-teria and government agencyspecifications. The project must beproperly presented to garner con-sideration by the government grantdecision makers. A thoroughunderstanding of the specific gov-ernment agency, its mission andoperational philosophy is critical.

What other Government Funding is Available?

The federal stimulus package rep-resents a tremendous opportunityto support company innovation,but it is not the only avenue forfunding. Unknown to manybusiness leaders, there are bil-lions of dollars each year infederal and state funds that areset aside for companies to uti-lize. Professional governmentrelations and lobbying firms areengaged to scan the environment

for opportunities and secure fund-ing - in effect subsidizing thebusiness operations - which has adramatic effect on the bottom line.

LNE Group has a successful trackrecord of helping clients takeideas and develop them intoviable programs which attractstate and federal governmentfunding. LNE Group’s FederalPractice works closely with Mem-bers of Congress and their seniorstaff to identify procurement,public policy and appropriationsfunding opportunities for clients.For years, the Federal Practice atLNE Group has secured millionsin annual congressional earmarksand is currently positioningclients to benefit from the land-mark US$787 billion FederalStimulus package. GAT

B U S I N E S S T O O L S

Lee C. Weingart is President ofLNE Group, a bi-partisan government rela-

tions firm with the demonstrated ability to serveadvocacy & public communications needs of clients at all

government levels in the U.S. In Europe, LNE Group supportsclient interests at the E.U. legislative level & within member

national states & state delegations in Brussels. With offices inOhio, California, DC, and Germany, LNE Group is able toaccommodate a clients’ needs from the Statehouse to

Capitol Hill & from the Bundestag to Brussels.

(216) [email protected]

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Germany Trade & Invest(GTAI) is not entirely new.It resulted from the merger

of two familiar federal agencieswith similar missions, eachworking in a different direction.The outbound-oriented GermanOffice for Foreign Trade, whichpreviously assisted companiesbased in Germany as they invest-ed abroad, and the inward-oriented agency Invest in Ger-many GmbH, with a similarmandate for attracting foreigninvestment to Germany, official-ly joined forces on January 1,2009. The new organiza-tion’s mission is topromote Germanyas a location for

industrial and technologicalinvestment and to provide infor-mation on market conditionsand identify both foreign andGerman investors for the respec-tive markets.

GTAI’s international team worksclosely with the German Cham-ber Network (AHKs) to provideup-to-date market informationand consultancy services. Thisever-growing partnership allowsGerman exporters and foreigninvestors to have a centralized firstpoint of contact. In the US,GTAI has offices in New York,Washington, D.C., Chicago, andSan Francisco. These offices work

with and complement the AHKoffices in Atlanta, Chicago, andNew York as well as Houston,Philadelphia, and San Francisco.

The role of the GTAI

GTAI provides comprehensiveeconomic and industry data,including location-specific advice,such as understanding legal andtax systems. The organizationworks to identify business oppor-tunities and informs investors ofincentive packages available in cer-

tain sectors or regions. Asprojects move further along,

GTAI experts shift theirfocus to a consulting

and project coor-

S P O T L I G H T S

Two Similar MissionsGermany Trade & Invest: The New Foreign Tradeand Investment Agency of the Federal Government


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dination role. They are able to pro-vide advice on market entrystrategies and project financing;calculate potential incentives andcosts; identify and select coopera-tion partners, suppliers, and R&Dinstitutes; organize site visits andfact finding missions; and facilitatecontact with economic develop-ment corporations for the relevantlocation. When the final projectdecisions are made, GTAI sup-ports the site choice; negotiateswith relevant authorities; assistswith the application process forreceiving incentives; and, finally,seamlessly hands the project overto the economic development cor-poration of the selected federalstate or nation. Despite offering

many of the same services as anexpensive consultant, GTAI’sinvestment services and relatedpublications are free of charge.

Germany continues to be aninteresting investment locationfor American businesses. Accord-ing to a recent study by theAmerican Chamber of Com-merce (AmCham) and the BostonConsulting Group, Germany wasthe number one location inEurope for American firms. Rea-sons cited included the qualityand reliability of the Made inGermany label, as well as thecountry’s resilience to the eco-nomic downturn. Over a third of

those surveyed in the 2009 Busi-ness Barometer believe that thecurrent economic climate willhave a lesser effect on Germanythan other regions in Europe.

Reasons for Germany’s favorable position

US companies cited the increasingemphasis on product and processquality as additional reasons forGermany’s favorable position,along with falling wage costs.Overtaking Eastern Europe for thefirst time, the wage differencebetween Eastern Europe and Ger-many has become a less relevantfactor in new investment decisions,

according to the study. In 2008 USinvestments in Germany remainedstable, with 49 percent of thosesurveyed increasing investmentsand a further 40 percent maintain-ing current investment sums.These figures are underscored byearnings: 65 percent of the sur-veyed companies increased theiryear-over-year earnings and anadditional 14 percent saw stableearnings for the year.

In addition to its attractiveness toestablished companies, Germanycontinues to innovate in the mar-kets of the future. As a pioneer inrenewable energies and the worldleader in terms of market size,capacity, and production in pho-tovoltaics (PV), wind energy, andbiodiesel, Germany hopes togrow this sector to 20% of theglobal renewable market share by2020. Additionally, Germany isthe European leader in high-tech,health care, manufacturing,chemicals, automotive, and aero-space industries.

The Next Generation of Airport Hubs

On the upcoming North AmericanRoadshow, “The Future of EuropeanMobility: Germany’s Next Genera-tion of Airport Hubs”, beginning inApril, GTAI will be showcasing Ger-many’s next generation of airporthubs. Events will be held with poten-tial investors in Chicago, New York,and Boston. The airports BerlinBrandenburg International (BBI)and Leipzig-Halle (LEJ) offer aunique investment location, as theytogether constitute new hubs forboth passenger and freight traffic,serving as a gateway between West-ern and Eastern Europe.

S P O T L I G H T S

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GAT

Michael Pfeiffer, Chief Executive ofGermany Trade and Invest (GTAI)


Time to ShareStimulus Package Funding Represents Unprecedented Opportunity for U.S. Energy Efficiency

T he “Stimulus Bill,” one of thefirst major items on theagenda of President Obama,

includes subsidization for renew-able energy and energy efficiencythat few dared dreaming about inprevious years. At least US$45billion in funding and US$20billion in tax incentives areincluded to be divided up amongthe 50 U.S. states to implementenergy and greenhouse gas reduc-tion plans and to updatebuildings to the “green stan-dards” of the 21st century,creating hundreds of “green” jobsin the process.

Furthermore, Jeff Bingaman,chairman of the Senate Energyand Natural Resources Commit-tee, is optimistic that enoughsupport exists in Congress to passlegislation requiring utilities togenerate a portion of the electric-

ity supply from renewable energysources. This Renewable Electric-ity Standard (RES) wouldgradually increase the renewableenergy percentage of U.S. elec-tricity to 20% by 2039.

Introducing the German “Energy ID”

This renewed boom in the U.S.energy efficiency and greenbuilding industries also createscountless opportunities forGerman companies active in

these fields. Germany enjoysan outstanding reputationthroughout the world for itshigh-quality technicalproducts and expertise inenergy policy and program.

One example is the “EnergyID” (“Energieausweis”), an

energy certification, which hasbeen introduced to assess andimprove the energy efficiency ofbuildings. It includes an assess-ment of the building’s totalenergy consumption along withrecommendations for improve-ments. The “Energy ID”, one ofmany German energy efficiencyprograms, will become manda-tory for all buildings inGermany by July 2009.

Additionally, a new ”RenewableEnergy Heat Act” (Erneuerbare-E n e r g i e n - W ä r m e g e s e t z(EEWärmeG)) came into effecton January 1, 2009. According tothe law, all new buildings have touse renewable energies to cover apercentage of the thermal needs(warm water, heating, cooling,etc). The act was passed in aneffort to increase the percentage ofrenewable energies used for heatin buildings to 14% by 2020.

German American Initiatives

Thus, in 2007, the German Min-istry of Economics and Technologydecided to launch the Energy Effi-ciency Export Initiative, designedto promote German products andtechnologies abroad and to encour-age an exchange between U.S. and

Stefan Morbe, California BranchDeputy Managing Director

We are excited to once again connectGerman and American

companies.Stefan Morbe, California Branch

“

”

S P O T L I G H T S


1 4


German green building experts. Aspart of this initiative the GermanAmerican Chamber of CommerceInc., California Branch, held its“2nd Energy Efficiency Sympo-sium – Insights into German andAmerican Green Building” in earlyMarch. After a successful sympo-sium at the “green” FederalBuilding in Downtown San Fran-cisco in 2008, the 2009 conferencetook place in L.A.

While San Francisco may bemore widely known for its pro-gressive policies, especially inregards to renewable energiesand energy efficiency, Los Ange-les has launched an ambitiousgreen building program in an

effort to become the greenestbig city in the U.S. The sympo-sium took place at the LosAngeles Department of Waterand Power (LADWP), thenation’s largest municipal utili-ty, serving the water andelectricity needs of the City ofLos Angeles. In an initiative tosupport the cities environmen-tal efforts, the LADWP hasstarted a number of programsunder the heading “Green L.A.”that promote energy efficientliving, which were introducedby Adjunct-Prof. GuillermoHonles of the LADWP PowerSystem Architectural Group.During the individual B2Bmeetings, first steps were taken

to establish future transatlanticbusiness relationships.

“Energy efficiency and greenbuilding go hand-in-hand withthe solar industry, where we havealready successfully connectedGerman and American compa-nies throughout the last fouryears,” says Stefan Morbe,Deputy Managing Director andrenewable energy expert at theGACC California Branch. “Weare excited to once again connectGerman and American compa-nies in the increasingly importantfield of energy efficiency.”

The “5th Germany CaliforniaSolar Day,” the well known solarsymposium organized by theGACC California Branch, is setto return to San Francisco onJune 16th, 2009. By then, therenewable energy funding of the“Stimulus Package” will likelyhave been allotted by the Depart-ment of Energy, the CaliforniaEnergy Commission (CEC) andthe other state agencies involved,and first results will start to show.California has been a leader withits solar programs such as the Cal-ifornia Solar Initiative (CSI) inthe past; now the outlook is sun-ny for U.S. and German greenbuilding and renewable energycompanies once again! GAT

S P O T L I G H T S

1 5



A C T I V I T I E S 2 0 0 9

A H K U S A G R E E N T E A M

May 3-5

NRW to the USA Delegation

Organized by GACCoMCincinnati, OHwww.gaccom.org �

Apr. 28

Energy Efficiency Conference

Held by GACC NYNew York, NYwww.gaccny.com �

May 3-8

NRW to the USA Delegation

Organized by GACC NYNew York, NYwww.gaccny.com �

May 4-7

WINDPOWER Tradeshow – AUMA pavilion and delegations

Supported by GACCoMChicago, ILwww.gaccom.org�

May 5

German Night Reception at Windpower with the GermanWind Energy Association(Bundesverband Windenergie)

Held by GACCoMChicago, ILwww.gaccom.org�

May 7-8

Support of the WINDPOWERTradeshow and program with several delegation meetings

Organized by GACC SouthHouston, TXwww.gaccsouth.comGACCoMChicago, ILwww.gaccom.org�

Apr. 27 - May 1

Export Initiative for Energy Efficiency (sponsored by the GermanFederal Ministry of Economicsand Technology)

Organized by GACC NYNew York, NYwww.gaccny.com�

Apr. 15

Green Initiative Networking Event

Held by GACC SouthHouston, TXwww.gacctexas.com�

Mar. 30 - Apr. 2

1st German American Energy Conference

Held by all GACCsBerlin, Germanywww.gae-conference.com�

Jun. 23

Energy Efficiency in Industry;Conference part of the ExportInitiative for Energy Efficiency

Held by GACCoMDetroit, MIwww.gaccom.org �

Jun. 8-12

2nd Atlanta InternationalEnvironmental Trade Mission

Held by GACC SouthAtlanta, GAwww.gaccsouth.com �

May 21-27

Business Trip to SouthernGermany for American SolarThermal Companies

Held by GACC NYGermanywww.gaccny.com �


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Aug. 18th

Future Transportation ScenariosSymposium by GACC, CaliforniaBranch, and Volkswagen Group of America

Held by GACCSFSan Francisco, CAwww.gaccsanfrancisco.com�

Jun. 23

5th German American RenewableEnergy Conference: Biomass:Power, Heat, and Fuels

Held by GACC NYSyracuse, NYwww.gaccny.com�

Sep. 1-3

2nd Annual Renewables & Energy Efficiency Roadshow

Held by GACCoMChicago, ILColumbus, OHDetroit, MIwww.gaccom.org�

Oct. 6-12

Wind Energy Buyer’s Delegationto Germany (part of the ExportInitiative for Renewable Energy)

Held by GACCoM in cooperationwith AHK Canada – MontrealGermanywww.gaccom.org �

Nov. TBD

US Solar Delegation Trip to Germany

Held by GACCSFGermanywww.gaccsanfrancisco.com �

2nd Half of 2009 TBD

2nd German American EnergyConference 2009

Held by all GACCsUSAwww.gae-conference.com �

Jun. 22-26

Export Initiative for RenewableEnergy: Bioenergy (sponsored by the German Federal Ministryof Economics and Technology)

Held by GACC NYSyracuse, NYwww.gaccny.com �

Jun. 16

5th Germany California Solar Day

Held by GACCSFSan Francisco, CAwww.gaccsanfrancisco.com �


U.S.-German Solar IndustryBusiness Matchmaking

Held by GACCSFSan Francisco, CAwww.gaccsanfrancisco.com�


Export Initiative for Wind Energy to Texas



2nd German American EnergyEfficiency in Buildings Conference.Part of the Export Initiative for Energy Efficiency


The renewable energy sector is experiencing a remarkable upswingin the USA. President Barack Obamaannounced investments of more than$150 billion over the next ten years.Additionally, approximately $71 billion from the Stimulus Plan will bemade available for the renewableand energy efficiency industries. The AHK USA Green Team, consistingof 16 experts active in the wind,solar, energy efficiency and biomass fields, will be organizingapproximately 20 projects, includingseminars, business delegations, conferences and market studies.


High prices for limited fossilfuel, dependency on foreignoil and increasing responsi-

bility for the environment hasled to increasing investments inrenewable energies in the U.S. inrecent years. A fruitful environ-ment for renewable energiesprovides the perfect combinationbetween available resources andestablished political and eco-nomical collaborations, aparticularly attractive opportuni-ty for German companies andtheir U.S. partners.

The wind energy sector is thefastest growing source of energyin the entire world and the U.S.is the world’s leading installer ofnew wind generation capacity. Inthe early 1980s California

became the pioneer in theU.S. when they

installed wind tur-bines in massive

arrays. TheU.S. saw thehigh poten-tial for thesewind tur-bines due totheir wind-

rich areas andinvested in

developing awind power market

over the last 20 years.

The investment paid off. In2008, the U.S. wind industryhad over 25,000 megawatts ofinstalled wind capacity - enoughto power over 6.6 million Ameri-can homes and surpassedGermany as the world leader inwind electricity generation,despite the fact that wind gener-ates only about 1.5 percent of thenation’s electricity.

A Successful Story

The establishment of the windenergy business in Germany is asuccessful story. The first tests ofwind energy systems financed bythe government started back in1978. However, it took time until1991 when the feed-in law wentinto effect, requiring electricityproviders to sell power into thepublic grid for set and predeter-mined prices, which resulted in asignificant increase in installedwind energy capacity. Today, 30years later, over 7% of Germany’selectricity consumption is generat-ed through wind. The GermanWind Energy Association (BWE)has set a target of 25% of Ger-many’s energy coming fromrenewable sources by 2020. Thewind energy sector will play amajor role implementing thisplan. The German wind industryis committed to continual techno-

The Answer isBlowing in the WindBy Angela Daberkow, Mandy

Herrmann, Bernadett Steiner

In 2008, the U.S. windindustry had over 25,000

megawatts of installed wind capacity- enough to power over 6.6 million

American homes and surpassedGermany as the world leader in wind electricity generation.

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S P E C I A L R E P O R T



logical improvements and haspositioned itself to be a successfultechnology supplier within theworld market. Among the topworld leading manufacturers ofwind turbines are German com-panies Enercon, Nordex,Repower, and Siemens. Otherwell-known companies such asFlender, Eickhoff, Thyssen, andBosch Rexroth produce for thewind energy sector and supplycomponents for, for example,General Electric, Gamesa and Ves-tas turbines. In fact, Germanmanufacturers and suppliers holda third of the global market sharein the industry, since more than70% of turbines and other prefab-ricated parts made in Germanyare exported internationally.

German wind energyregulations played avital role in the deve-lopment of theindustry. In the U.Sthis process has notgrown as much as inGermany, but the major-ity of states have already setstandards for the renewableenergy sector. In order to fulfillthese goals, many states institut-ed Renewable Energy Standards(RES) or Renewable PortfolioStandards (RPS). These stan-dards define what types ofrenewable energy will be used,and the required percentage oftotal power from these sources ata specific point in time. Texas forexample set the objective of hav-ing 5,880 MW produced by

alternative energy resources by2025. Illinois for instancedeclared the 25x25 standard,which means that 25% of theenergy will come from therenewable energy sector by 2025.

Winners of New Energy Policies

Overall, wind power developersare poised to be among thebiggest winners of Congress’ newenergy policies. It will continuethe successful year of 2008, “arecord year where the wind ener-gy industry had a 50% growth

relative to the prior year in totalcapacity”, as Hans Detweiler,Manager State Legislation andPolicy at the American WindEnergy Association, points out.Not only will they gain by theCongress’ expected extension ofproduction and tax credit, butalso by the $4.5 billion dollarsthat are put aside for an upgradeof the transmission systems bythe House and Senate. Investorswould also benefit from thelongest extension of the producttax credits ever through the endof 2012. Another great opportu-nity included in the stimuluspackage, is the new 30% manu-facturing tax credit forinvestment in qualified property

used in a qualified advancedenergy manufacturing proj-

ect. Given those trends,Ed Weston, Director ofthe Great Lakes WindNetwork, forecastsstrong double digitgrowth rates in the wind

industry in America forthe next 20 years.

Regions

When it comes to existing instal-lations of wind energy, Texas,California, and the region of theGreat Plains are playing a leadingrole. In 2008 alone, 55 new orexpanded wind energy facilities –from blade manufacturers tobearing makers - popped upnationwide, mostly located inthe Great Plains and many morehave been announced. The

>>


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region running fromMinnesota to Texas isoften described asthe new north-south windcorridor. Alreadyover 85,000 jobs arerelated to the windindustry nationwidetoday, which will onlyexpand as the supplychain becomes more localand the industry continues togrow.

Currently Texas is the leadingwind state in the U.S., with7,116 MW of installed windenergy capacity, accounting forclose to one-third of thenation’s total wind portfolio.The coast of Texas provideshigh quality areas for winddevelopment which have notbeen completely tapped yet.Despite its relatively small landarea, Iowa passed California in2008 and is now the secondlargest wind energy producer inthe country with a power capac-ity of 2,790 MW.

The Emerging Energy ResearchInstitute in Massachusetts exam-ines the key trends in US windpower markets and reportsapproximately 56 gigawatts ofnew wind capacity under devel-opment in Texas and Oklahoma.Great Plains and the Midweststates account for 7 of the Top 10in terms of projects under devel-opment, with a total of 127 GW.

WINDPOWER Expo 2009

The largest annual wind confer-ence and exhibition in theworld, WINDPOWER Expo2009 will take place in Chica-go, IL from Monday, May 4 toThursday, May 7. The gather-ing of wind energyprofessionals, who are eager toget the latest update on the newindustry developments andtechnologies, will be supportedby a German Night Receptionorganized by the GermanAmerican Chamber of Com-merce of the Midwest(GACCoM) on May 5. A Ger-man delegation of companiesfrom the wind industry will bejoined from experts fromthroughout the industry thatnight for interesting discussionsand networking opportunities.In addition, German companiesinterested in exploring theTexas or Midwest wind market

will be able to do soas part of an organ-ized trip by theTexas and Chicagooffices of the Ger-man AmericanChambers of Com-

merce (GACC).

Supporting German Companies

Due to the importance of Ger-man technology to the U.S. windindustry, the GACC are deeplyinvolved in this sector. TheChambers have established anextensive network in the windenergy industry.

Our services range from assistingindividual German companiesstarting or expanding their oper-ations, supporting their activitiesat the 1st German AmericanEnergy Conference 2009 inBerlin or at the WINDPOWERshow in May 2009, as well asorganizing conferences androundtable discussions with lead-ing industry experts andidentifying suitable business part-ners in the wind energy industry.These activities are heavily spon-sored by the German FederalMinistry of Economics and Tech-nology through the ExportInitiative for Renewable Energy.

One recent example of theExport Initiative was theWindEnergy Business 2009Conference hosted by GACCoM

The SSC Group took partin the WindEnergy Business 2009

Conference in order to decide whetherto enter the US market. The perfectlyorganized event not only provided us

with the information necessary for reachingthis decision, but also allowed us

to form valuable business contacts.Holger Bartling, CEO,

SCC Windenergy Service GmbH


which featured the Germancompany SSC Windenergy Serv-ice GmbH. SSC is involved inservicing and installing windenergy plants and althoughbeing a newcomer to the market,SSC was able to meet a numberof companies including twowhich are promising as potentialpartners. “The SSC Group tookpart in the WindEnergy Business2009 Conference in order todecide whether to enter the USmarket. The perfectly organizedevent not only provided us withthe information necessary forreaching this decision, but alsoallowed us to form valuable busi-ness contacts. For this thewell-established network ofGACCoM proved very helpful,”says Holger Bartling, CEO ofSSC Windenergy ServiceGmbH. SSC also plans toattend the WINDPOWER expo

2009 in May in Chicago.Another example of a Germanwind company which was sup-ported by the German AmericanChamber of Commerce of theSouthern United States, Inc. isZarges Aluminium SystemsGmbH. Zarges–Tubesca wasfounded in Stuttgart, Germany in1933 as Europe’s first light-alloyprocessing company. Zarges Alu-minum Systems, based inWilhelm, Germany, is one ofthree company divisions. Itsupplies systems solutions toleading manufacturers world-wide in fields ranging fromwind energy development tothe quality-conscious aviationindustry to security-sensitivemilitary applications. Zarges tookadvantage of our services at theWINDPOWER conference in2008 and is currently planning tofound a manufacturing facility in

Amarillo, Texas. Bernd Göpfert,President of Zarges AluminiumSystems in Germany said: “We are very proud to be on the fore-front of establishing Amarillo asthe U.S. center for wind powerenergy”.

We are very proudto be on the forefront

of establishing Amarillo as the U.S. center

for wind power energy.Bernd Göpfert, President,

Zarges Aluminium Systeme

GACC of the Midwest, Inc.

Bernadett Steiner, Renewables Project Manager

(312) 494-2180 • [email protected]

GACC of the Southern US, Inc. - Texas Office

Jan Christoph Wiedemann, Managing Director

(832) 384-1201 • [email protected]

GAT

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My parents started our Light-ing Manufacturing Business(Dahlhaus GmbH) in Ger-

many about 40 years ago. We nowhave one of the few remainingfoundries in an area of Germanythat was known for metal-work.

Therefore, from the day I wasborn, I grew up right in the mid-dle of the lighting business. Myday-crib was located in my moth-er’s office as she was (and still is)our head-bookkeeper.

Before, during and after doingmy apprenticeship at anotherlocal foundry, I would alwayshelp out at our factory. From

hands-on casting to metal-workand even in-store selling and reg-ular office work.

Why America

I came to New York by purechance. My girlfriend at the time(now wife) decided to go to NewYork to work as an industrialdesigner. I joined her and startedto study business at a New Yorkuniversity called PACE.

During the time of my studies, Ihad to write several business plansfor various courses etc. And one ofthe plans I wrote was aboutDAHLHAUS Lighting USA. Itwas ‘the’ business I knew best, andtherefore it was the most natural fit.

The university helped me to fig-ure out all the legal aspects ofstarting the business and I startedthe business in 2000 while stillbeing a student.

Cultural Surprises

For me, the greatest surprisewould be the fact how much busi-ness I wind up doing with otherGerman immigrants. They reallyrepresent the core of my business.

You can say that I speak Ger-man to a client at least once aday. Often times they are trulyhappy about chatting with me,

and since our products arenot cheap and require a lot ofdecisions before a purchase, I

frequently build real relation-ships with the client.

P E R S O N A LB A C K G R O U N D


G E R M A N E N T R E P R E N E U R I A L S P I R I T I N T H E U N I T E D S T A T E S

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D R E A M C A T C H E R S

“I saw the light.”Lars Dahlhaus expanded

his family business from Ennepetal

with Dahlhaus Lighting, Inc.

to Brooklyn.

2 2


(Rotes Kreuz) I already went toNew York.

The 3 ½ years of BA ended in ear-ly 2001. My major there wasGeneral Management and Eco-nomics. I have been self-employedever since 2000.

Late in 2007 I started Upscale-Lighting.com, an E-Commercewebsite. The idea was first tohave an online outlet for ourDahlhaus Lights. But that reallygrew into becoming a site thatsold ‘any’ kind of lighting, frominterior to exterior, high-endand even lower-end. Our claimto fame is that we are trying tobe better in the customer servicearea. Also, since I know thelighting business from a manu-facturers end, I can relate to anykinds of question from con-sumers or vendors.

Reason for Starting Business

My parents have always beenself-employed, and after doingmy apprenticeship I was sure

So I can attribute a lot ofmy personal success to themere fact that I am notonly selling Germanproducts, but thatI am German aswell. I don’t think Iwould have done as well withjust a network for Sales-Repsaround the country.

Biggest Challenge

In the beginning I would saythat getting the right visa wasvery complicated. When Istarted the business I was still astudent on a J-1 Visa. Withhelp from the German Ameri-can Chamber of Commerce Ifound Hilde Holland (alawyer, now at Wuersch &Gering, LLP) who helpedme getting my E-1 Visa,which eventually also helpedmy wife to stay in the country.

In 2005 I was one of the fewlucky Green Card winners.That solved all the issueswe had.

Greatest Inspiration

My family is probably mygreatest inspiration.

My parentshave both managed

to start and run ourlighting business for 40years. They have plantedthe seeds of entrepreneur-ship in me and my brotherwho is also involved in thebusiness in Germany.

As described in my personalbackground, I really drawmost of my business knowl-

edge from growing up inmy family’s business.

However, after going toour local “Realschule” Iwent to get my Abiturfrom a Business School(Hoehere HandelsschuleEnnepetal). I did myapprenticeship and after

1 ½ years of Zivildienst

2 3


>>

FAST FACTS DAHLHAUS L IGHT ING , I N C .

Names of Partners: Lars DahlhausHometown: Ennepetal (Near Wuppertal and Hagen, Westfalen)Age of President/Partners: 35 Location: 172 North 11th Street, Brooklyn, NY 11211Year Founded in the U.S.: 03/2000Business Activity: Import, Wholesale, Retail and E-Commerce of Lighting FixturesNumber of employees: 5 Full Time, 2 Part-TimeRevenue: $720,000 in 2008


B U S I N E S SB A C K G R O U N D

www.Dahlhaus-Lighting.com www.UpscaleLighting.com


that I wanted to do ‘my ownthing’ as soon as possible.

To combine being an entrepre-neur with helping our Germanbusiness was the best case sce-nario. Without exaggeration, I canclaim that our US business hassaved the German factory throughtough economic times. (And it isdoing that again just now).

The UpscaleLighting venture hasreally helped me to take advan-tage of my knowledge in thelighting business and create anew source of income.

Source of Start Up Capital

I started very small (from myapartment in Brooklyn). Therefore

the little money I needed for adver-tising and printed materials, I gotfrom our company in Germany.

For several years I would alwayssave money from sales and re-invest it in the company.Growing slowly in the process, Imoved into a ‘real’ office spacewith showroom in 2004 and havebeen there since.

The UpscaleLighting venturewas financed almost entirelyfrom profits of the DahlhausLighting business.

Biggest Obstacle

The biggest obstacle at this pointI would say is the global econo-my. I am hoping that our saleswill not be terribly affected espe-cially since we have ventured intothe E-Commerce business withUpscaleLighting, which sellslighting in any price-range.

Future Goals

In the very near future, actuallyby May 2009, we will be openinga small retail store in Williams-burg, Brooklyn. I hope that theaddition of a “brick & mortar”store to our online venture willhelp us increase sales.

It is probably one of the veryfew “reverse actions” you’ll find.Because traditionally an existingB&M store would think ofstarting a website, not the otherway around. GAT

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Atlanta

German American Chamber of Commerce of the Southern United States, Inc.530 Means Street, Suite 120

Atlanta, GA 30318

T 404-586-6800 F [email protected] • www.gaccsouth.com

Chicago

German American Chamber of Commerce of the Midwest, Inc.401 N. Michigan Avenue, #3330

Chicago, IL 60611-4212

T 312-644-2662 F [email protected] • www.gaccom.org

Houston

German American Chamber of Commerce of the Southern United States, Inc.Texas Office1900 West Loop S., Suite 880

Houston, TX 77027

T 713-629-8787 F [email protected] • www.gacctexas.com

New York

German American Chamber of Commerce, Inc. 75 Broad Street, 21st Floor

New York, NY 10004

T 212-974-8830 F [email protected] • www.gaccny.comEditor & Advertising Coordinator:

Nicola Michels • [email protected] 212-956-1770 F 212-974-8867

Philadelphia

German American Chamber of Commerce, Inc.Four Penn Center, Suite 200

1600 John F. Kennedy Blvd

Philadelphia, PA 19103-2808

T 215-665-1585 F [email protected]

San Francisco

German American Chamber of Commerce Inc.California Branch201 California Street, Suite 450

San Francisco, CA 94111

T 415-248-1240 F [email protected]

T R A D EG E R M A N A M E R I C A N

T H E M A G A Z I N E O F T H E G E R M A N A M E R I C A N C H A M B E R S O F C O M M E R C E

German American Trade is publishedmonthly except bimonthly in January andJuly by the German American Chamber ofCommerce Inc., 75 Broad Street, 21stFloor, New York, NY 10004.

Reproduction in whole or in part of anyarticle is prohibited without permission.

Unsolicited manuscripts cannot be returnedunless accompanied by a properly addressedenvelope bearing sufficient postage. Editorreserves the right to edit letters to bereprinted. Editor and publisher cannotaccept any liability for the accuracy or com-pleteness of any material published.Contributed articles do not necessarilyreflect the Chamber’s position. If you haveany comments regarding articles in thismagazine, please call 212-956-1770.

Periodical postage paid at New York, NY and additional mailing offices: USPS number 025-026

One Year Subscription: US$ 50 (Euro 50,-)One subscription is included in annualmembership dues.

Single copy: US$ 5

U.S. postmaster send address changes to:German American Trade, 75 Broad Street,21 Fl., New York, NY 10004.

Office of publication: New York

Publication date of this issue: April 2009

© Copyright 2009 German American Trade

GAT Editorial Team

Nicola Michels GACC NY [email protected]

Barbara Afanassiev GACC NY, Philadelphia [email protected]

Stefanie Jehlitschka GACC [email protected]

Sabine Zimmermann GACC NY, California [email protected]

Janka Pieper GACC [email protected]

Pia Spangenberger GACC [email protected]

Julia Zimmermann GACC South, Texas [email protected]

Design and Production

328 Commerce Street

Hawthorne, NY 10532

T 914-741-0445 F [email protected] www.thinkersdesign.com

2 6



2 7


E V E N TC A L E N D A RMarch 30 - May 2, 2009

Apr. 2

WI Chapter: “Dialogues with Diplomats”, Breakfast with Ambassador Scharioth

Held by GACCoM WI ChapterMilwaukee, WIwww.gaccom.org �

Apr. 22

Annual Meeting


Apr. 21

MI Chapter: SAE Reception

Held by GACCoM MI ChapterDetroit, MIwww.gaccmi.org �

Apr. 22

“The Future of European Mobility:Germany’s Next Generation of Airport Hubs”


Apr. 23

Luncheon Meeting with Karsten D. Voigt, Coordinatorof German-American Affairs in the German Foreign Office

Held by GACC PhiladelphiaPhiladelphia, PAwww.gaccphiladelphia.com�

Apr. 28

Business Seminar “Asset Allocation:Making Your Assets Work for You - Now and in the Future”

Held by GACC SouthAtlanta, GAwww.gaccsouth.com�

Apr. 28

“After Hours”Business Networking


Apr. 17

MN Chapter: Winetasting Gala

Held by GACCoM MN ChapterMinneapolis, MNwww.gaccom-mn.org�

Apr. 16

Keynote Address by the European UnionAmbassador John Bruton

Held by GACC PhiladelphiaPhiladelphia, PAwww.gaccphiladelphia.com �

Apr. 16

Southeastern Automotive Supplier Forum

Held by GACC SouthHanover, Germanywww.gaccsouth.com�

May 1-2

GACC South Annual General Meeting

Held by GACC SouthCharleston, SCwww.gaccsouth.com �

May 1

9th Annual Merlin Awards Gala

Held by GACCoMChicago, ILwww.gaccom.org �

Apr. 30

15 Years Young ExecutiveCommittee featuring Germanartist Jim Avignon


Mar. 30 - Apr. 2

1st German American Energy Conference

Held by all GACCsBerlin, Germanywww.gae-conference.com �


P A S T G A C C E V E N T S

Berlin, March 30 – April 2, 2009 – The “1st German American Energy

Conference” from March 30 – April 2, 2009 in Berlin titled “Renewable

Energy Boom USA“ explored how German companies can benefit from the

current new development in Renewable Energies. The conference was organ-

ized by the German American Chambers of Commerce (GACC) and the German

Energy Agency (dena). German Foreign Minister Dr. Frank-Walter Steinmeier

was patron of the conference. The event took place within the framework

of the Transatlantic Climate Bridge. Together with German Minister of

Economics and Technology, Dr. Karl-Theodor zu Guttenberg, German Foreign

Minister Steinmeier presented the opening remarks at the conference, while

German Environment Minister Sigmar Gabriel opened the evening reception.

G E R M A N M I N I S T E R S S T E I N M E I E R , Z U G U T T E N B E R G , A N D G A B R I E L O P E N E D 1 S T G E R M A N A M E R I C A N E N E R G Y C O N F E R E N C E I N B E R L I N

3/5 The Future of Houston’s

Intercontinental Airport

GACC HighlightsMarch 2009

3/10 “2nd Energy

Efficiency Symposium”

Los Angeles, CA

2 8



P A S T G A C C E V E N T S

2 9


Chicago, IL

New York, NY

Philadelphia, PA

3/17 HR Circle

with Jane Addams

Resource Corp.

3/12 Global Leaders Luncheon

with SAP’s Leo Apotheker

Houston, TX

3/19 Business Seminar

“Understanding the American Media:

The Importance of the Press Release

and What It Says”

Atlanta, GA

3/26 Annual

Membership Reception

3/15 German Economics Minister

Dr. Karl-Theodor Freiherr zu Guttenberg

at the University Club

3/25 YEC - “Dealing with the Financial

Crisis 2009” - by Harriet Higgins, Financial

Consultant of Smith Barney Citigroup.

3/4 GACCNY with Synnecta Inc.

“Perspective in the Storm

- Leading Through Crisis” Seminar

3/5 YEC - Seminar: The New U.S.

Goverment and Strategies for Foreign

Companies Doing Business in the U.S.

Berlin, Germany

3/30-4/2 1st German

American Energy Conference

3/3 Rite-Hite

Open House Event

Milwaukee, WI


GAT: How is the economyaffecting your business in the US?

TOPP: Like other companies inthe machinery building sector,Heidelberg is strongly affected bythe global recession. Starting inJuly 2008 we have stepped up aglobal program to reduce struc-tural cost. At the same time weare maintaining our strong mar-ket position and continue toinvest in less cyclical growthareas. Heidelberg has been invest-ing in its ancillary services likespare parts, equipment serviceand consumables. We realize thatthis is not only important for ourcustomers but for us as well.Heidelberg is fortunate to have aloyal customer base and by offer-ing these services it’s our beliefthat we’ll have grown that loyalbase exponentially.

GAT: What are the main chal-lenges for the printing industry?

TOPP: The printing industry inthe US has seen a sharp decline incapacity utilization in the last 12months and many of our cus-tomers are faced with decliningsales and margin pressure. Underthese current economic condi-tions customers are naturallymore reluctant to make a invest-ment decision. However, now isthe time to strengthen their com-petitive situation and to get theprint production process stream-

lined. Our most cost efficient andflexible customers will gain a bigcompetitive advantage by invest-ing during this downturn andwill be poised for a quick “jumpstart” when business picks upagain. Heidelberg’s support startswith helping to analyze our cus-tomers’ production processes andperforming benchmarks withother companies in the industry.Based on these results our salesand support team is presentingimprovement ideas and helpingthe customer to develop a “roadmap” for different areas of theprint shop to increase flexibility,efficiency and finally profitabili-ty. Combining a customer’s exist-ing equipment with our strengthin service, parts and customer tai-lored consumables packages canimprove the financial situation ofour customers in this tough envi-ronment. To enable printers toinvest in their growth we havebuilt up a network of strong part-ners in the financial lendingindustry that are supporting ourcustomers through all cycles ofthe economy.

GAT: You have been on the Boardof the German American Cham-ber of the Southern U.S. since2004. How do you see the role ofour chamber and its impact in thebusiness community?

TOPP: It’s a privilege beinginvolved with the Chamber and

to assist in fostering strongGerman American trade rela-tions. The large member commu-nity and the various networkingevents are supporting theexchange of different experienceson doing business in the US.One specific benefit for us wasbenchmarking internal processeswith other German companies inthe Atlanta area.

BO

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Thomas ToppHeidelberg USA, Inc.Senior Vice President & CFO(770) [email protected]

B O A R D T A L K

3 0


GAT

A B O U TH E I D E L B E R G U S A , I N C .

With a global market share for sheetfed offset printing

machines of more than 40 percent, Heidelberger

Druckmaschinen AG (Heidelberg) is the world’s

leading solution provider for commercial and industrial

customers in the print media industry. With development

and production sites in six countries and some 250

sales offices worldwide, the Company offers services

to more than 200,000 customers around the globe.

In fiscal year 2007/2008, Heidelberg achieved

sales of Euro 3,670 billion referring and the Group

employed 19,596 staff worldwide.

How does the economyaffect the printing industry?

Thomas Topp has been the Senior

Vice President, Finance for Hei-

delberg USA, Inc. since 2002. He

has served on the Board of the

German American Chamber of

the Southern US since April 2004.



For further information or banner advertising please contact your nearest

German American Chamber of Commerce:

GACC South Atlanta Office: Stefanie Jehlitschka404.586.6803 • [email protected]

GACC Midwest Chicago Office: Janka Pieper312.494.2162 • [email protected]

GACC New York Office: Nicola Michels

G E R M A N A M E R I C A N T R A D E M A R C H 0 9

• The Who’s Who of German-American business relations

• Lists over 3,500 HQs and branch offices

of German firms in the United States,

as well as their parent companies

in Germany

• Offers detailed information such

as top executives, email addresses,

number of employees, turnover

and NAICS classification 212.956.1770 • [email protected]

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