World City Guide

Business

Business Profile
With Germany in the middle of a serious and sustained economic downturn, which has brought with it high levels of unemployment and various social problems, Hanover has had its fair share of economic problems of late. Expo 2000 remains a double-edged legacy, with some debts still to be paid, although a permanent site for leisure and a ready-made conference venue was created as a result of this project. Despite the optimistic forecast of 40 million guests, only 18 million visitors came to see the presented ideas and solutions for the future of mankind and the planet. Although Expo 2000 created employment – especially in the construction and service industries – it produced an overall deficit of one billion Euro for the state of Lower Saxony and Germany. The Messegelände (trade grounds), where the Expo site is located, are perhaps symbolic of the city’s economic situation – ‘Messe’ remains in place to provide an assured and competitive venue for all sorts of business events, although the budgets and scale of some of these events are being limited by the current economic woes.

Unemployment in Hanover stood at 11.1% in August 2002, above the national average of 8.3%, with over four million Germans registered as unemployed in September 2002. Hanover, however, still produces a quarter of GNP for Lower Saxony. The city’s traditional manufacturing strengths lie in vehicle and machinery construction – around 30,000 people are employed in motor and related industries, of which nearly half work for Volkswagen AG.

In the past few years, small and medium-sized businesses have recorded some growth in transport, logistics, tourism, communications and event management. Future success is hoped for in areas of new technology, electronic and chemical development and applied research. A number of national and international businesses have a presence in Hanover, including Continental AG (rubber processing), Bahlsen (food products) and KPMG (accountancy).

The city enjoys a key position at the intersection of national road and rail routes, with an international airport and four major ports, which have contributed to its role as a major international trade fair and exhibition venue. The large grounds of the Messegelände and the Hannover Congress Centrum are located southwest of the city centre, which is also where many businesses are located. Hanover’s Messegelände is the largest and most modern exhibition space in the world and hosts an annual programme of around 50 events, usually attracting 28,000 exhibitors and 2.8 million visitors. Events are planned and run by Deutsche Messe AG (tel: (0511) 890; fax: (0511) 893 2626; e-mail: info@messe.de; website: www.messe.de), which has an annual turnover of ¬250 million. The most important events are CeBIT (tel: (0511) 893 1258; fax: (0511) 893 1658; website: www.cebit.de), the world’s leading IT and Telecommunications fair, which attracted 8106 exhibitors from 60 countries and 830,000 visitors over seven days in 2001, and Industry Trade Fair Hannover Messe (website: www.hannovermesse.de).

Business Etiquette
The working day begins between 0800 and 0900 and ends at 1700. Many offices shut at 1400 on Friday. Punctuality for both business and social events is extremely important in Germany. The stereotypical north German is hardworking, thorough and fastidious and although such clichés should not be applied too generally, impressive efficiency and firm business sense can be expected from Hanoverian businesspeople. Straight talking is also appreciated.

Both men and women are expected to wear suits – men should also wear a tie. Business contacts must be addressed by their surname and by the formal ‘Sie’ for ‘you’. Academic and other titles should be used wherever applicable. Visitors to Germany should also note that in some cases, instead of applauding, German businessmen and women may rap their knuckles on the table, although this practice is less common in the north.

Business meetings are usually very formal and kept as brief as possible, while socialising mainly takes place over business lunches, especially on Friday, as many offices close at around 1300. After work drinks are a more casual affair between colleagues and therefore seldom include clients.