Locational advantages

After reunification, the swift expansion and rebuilding of transportation routes became the main priority of infrastructure policy in Eastern Germany. More than EUR 67 billion was invested in completing a large number of highways, the rail system, and telecommunications networks. A state-of-the-art logistics and communications network has since developed in the new federal states, ensuring quick access to suppliers, service providers, and many exemplary industry parks. Last but not least, the creation of the new Berlin Brandenburg International Airport (BER), joining the existing major cargo airport Leipzig-Halle (LEJ), will further increase Eastern Germany’s international network capacity and provide enormous growth and new business location opportunities.

A highly qualified workforce is key to economic competitiveness, as it helps secure the wealth of a society. The new federal states in Eastern Germany have a highly motivated, qualified and reliable workforce – with many workers qualified to carry out more than one job. As such, they belong to one of most flexible and best trained workforces worldwide.

Eighty-seven percent of the available labor pool in the new federal states have completed formal vocational training. Specific industry requirements are met by vocational colleges who work closely with business. Each year, around 80 thousand students successfully complete their studies in Eastern Germany.

The new federal states in East Germany are playing a crucial part in the German market. As a breeding ground for hundreds of new start-ups, the region is attracting more investors than ever.

Workers in the area are dedicated to their craft, providing a strong foundation for many developing and established businesses. Labor productivity in the eastern German federal states has doubled since 1991 with an average economic output at around EUR 50,000 per employee.

Productivity remains significantly lower in other eastern European countries which have undergone a similar transformation process to that of Eastern Germany.

The high productivity of these employees contributed to a GDP of nearly EUR 350 billion in 2016. US companies in particular count their eastern German sites as being among the most productive worldwide.

Economic considerations play an imperative role in the decision-making process behind selecting a business location. While productivity in the eastern German federal states is extremely high, attractive rental and property prices as well as low associated costs make a compelling case for locating your business in the eastern German federal states.