Residents across the Atlantic, specifically in the lesser-known state of North Carolina, are relishing in a rich blend of cultures as they enjoy German beer in local halls, feast on delicious bratwurst and schnitzel in Bavarian eateries, and work for industry giants such as Siemens and Schott Pharma. The credit for this unique cultural blend goes to a substantial number of German immigrants.
This east coast state, with a comfortable six-hour time difference from mainland Western Europe, has long been a magnet for international businesses. In recent years, there’s been a noticeable influx of interest from Germany.
Last year, German companies significantly amplified their investments in the U.S., nearly tripling the figures. A whopping $15.7 billion was invested, influenced by factors such as Germany’s stagnating domestic economy, enticing incentives from Joe Biden’s Inflation Reduction Act, and a strategic shift away from Germany’s heavy trade reliance on China due to geopolitical tensions and economic slowdown.
North Carolina has been a significant recipient of these investments. German titans such as Siemens, Daimler Trucks, and Schott Pharma have each poured in hundreds of millions of dollars in recent years. Over the last decade, 109 German companies have invested more than $2 billion in North Carolina.
Even the local NFL franchise, the Carolina Panthers, based in the state capital of Charlotte, is participating in the cultural exchange. They are scheduled to play the New York Giants in Munich this November, symbolically transforming long-standing business links into cultural ties.
The Tax Advantage
North Carolina’s 2.5% corporation tax is set to be phased out entirely by 2030, attracting foreign businesses to the State.
However, the relationship between North Carolina and Germany is not a recent phenomenon. Anders Victor, director of business development at the Economic Development Partnership of North Carolina (EDPNC), notes that the relationship dates back to the 1700s when German settlers made their way south from Philadelphia and settled in the state.
Victor emphasizes the multi-century alliance with German expats, which is now manifested as a passionate and organized community.
Within this thriving direct investment lies a vibrant engine of German expats and their descendants, adding a distinctive touch to the State’s workforce. Since 2017, over 15,400 Germans have migrated to the State.
Impact on Education and Workforce
Siemens has significantly contributed to a burgeoning apprenticeship program in North Carolina, a trend that is gaining momentum across the U.S. as the value proposition for a college degree declines. The state’s colleges and universities are also providing German companies with a skilled local workforce in life sciences.
From an outward perspective, the immigration appears to be a win-win situation for both Germans and North Carolinians.
German immigrant Hans Hilgenstock, who moved to North Carolina in 2004, has fallen in love with the State and its burgeoning German diaspora. Hilgenstock speaks about 80% English and 20% German day-to-day, and has noticed distinctive cultural differences reflected in the business world, particularly in the culture of meetings.
Political Controversy and Its Impact
Since 2016, the U.S. political environment has grown increasingly toxic, and the prospect of a Trump second term has led many Americans to contemplate relocation. A record number of ultra-high-net-worth and high-net-worth individuals in the States are applying for second passports as a safety net against the prospect of civil turmoil due to the U.S. political landscape, with many looking across the Atlantic.
Even Hilgenstock, a German immigrant, has noticed a shift in the perception of politics over the last couple of decades. According to him, foreign companies in the U.S. are concerned about their investments and are rushing to complete investments in the State, fearful of significant import tariffs being introduced by a potential new Trump administration.
Despite the political uncertainties, Hilgenstock encourages Americans to explore the world and Germans to consider opportunities outside their home country, hoping a new wave of younger Germans might drive more expats to his “paradise” of North Carolina.
