Tuesday

15th Jun 2021

US firms look east to invest

US firms are increasingly looking to the new EU member states as places to invest and away from traditional hubs such as Germany, a new report has shown.

The report, unveiled yesterday (8 March) by the American Chamber of Commerce and the Boston Consulting Group, shows that 26 percent of US firms see Eastern Europe as the best region for business investment.

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This rate has doubled in the past year.

And Eastern Europe is winning business not just from industrial sectors such as car manufacturers but also in the service sector, especially in IT support or call-centres.

US companies see Poland, the Czech Republic and Slovakia as the most attractive labour markets in Europe - followed by the UK and Ireland, the report revealed, adding that American firms are attracted to the new member states because of low wage costs and a light regulatory regime.

The study also shows that Germany is losing out to the competition from the new member states, compounding its difficulties of high unemployment and low growth.

One fifth of US companies already active in Germany are considering moving part of their business to another European location.

The head of the Boston Consulting Group in Germany, Dieter Heuskel, said, "as a production area, Germany is rapidly losing ground to its Eastern European neighbours".

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