Even if sometimes rather unapproachable when expected to socialize in a somewhat personal context, Germans like to mix and mingle professionally. When it is to their advantage or it serves a larger cause, managers and company owners are often ready to cooperate with businesses that are in the same industry, sometimes even with their competitors.
I am not talking about cartels and price rigging – which I do not deny may exist – but about the role German trade associations and industry initiatives play in structuring professional networks.
Some important German trade associations you should know
The Verband Deutscher Maschinen- und Anlagenbau (VDMA), for example, represents more than 3,200 member companies in the mechanical and systems engineering industry in Germany and Europe, mainly looking at common economic, technological, and scientific interests.
When I last accessed their website, the landing page of the German Association of the Automotive Industry (VDA) read “Quo vadis, Diesel?” The VDA currently represents more than 600 companies that manufacture cars, trailers, bodies, and buses, as well as parts and accessories; and, it is concerned with more than just the question of how the recent diesel emission scandal will affect the industry in the long run. One of their major activities is the staging of the IAA trade shows.
There is even an association for enterprise federations, industry working groups, and industry-affiliated service providers, which is the Bundesverband der Deutschen Industrie e.V. (BDI). The Federation of German Industries focuses “the joint interests of its member associations and represent[s] these in dealings with parliament and society.” The BDI “represents the interests of 100,000 businesses with eight million employees.” But, there are many more smaller and often very specialized associations.
As you can see, personal relationships may become less relevant when you are embedded in a quite easily accessible and tightly institutionalized network that you can rely upon; and even you can tap these networks and try to make use of their resources! Some associations, like the Association of German Engineers (VDI), explicitly seek and maintain close relationships with an international audience.
The network of the German Chambers of Commerce Abroad (AHKs) consists of bilateral chambers of commerce abroad. They consult and represent German companies worldwide that wish to develop or expand their business activities in the respective countries. I suggest you get in touch with your local chamber and find out whether you can participate in conferences or networking events that target German business people wanting to do business in your country.
Industry standards
Associations are also always a good starting point when you need to learn about certain industry standards that are (maybe) relevant for exporting your products to Germany. If you want to sell electronic goods, for example, the Waste Electrical and Electronic Equipment Directive (WEEE) or Restriction of Hazardous Substances Directive (RoHS) are matters you need to get acquainted with. For that purpose, I suggest you first try to get in touch with ZVEI, the German Electrical and Electronic Manufacturers’ Association. On their website, they inform about economic policies, business cycles and markets, and so on.
And, how would you identify the associations relevant for you? Either you go through the BDI’s website or you check out who are the media partners of relevant trade fairs. Very often, the events are supported, if not organized, by the relevant associations. Or, simply try a keyword search: “my industry” plus “association” or (in German) “Verband.” Or, even better, get in touch with me!
Support for international companies
If you are planning to develop your business in Germany, you will likely encounter some recurring challenges along the way. Many of them can be avoided with the right preparation and local insight. I support international companies in assessing their opportunities, navigating German business structures, and identifying potential buyers and partners.