Public debate in Germany has become increasingly sceptical of the United States in recent years, particularly around trade policy and political developments. But according to Julian Banse, Managing Consultant at Banse Consulting, the reality inside corporate boardrooms tells a more pragmatic story.
Banse works closely with companies navigating cross-border markets, particularly between Germany and the United States. His firm, founded in 2020, focuses on supporting small and medium-sized enterprises with marketing, HR and international business development.
The Gap Between Rhetoric and Reality
“The relationship is somewhat ambiguous at the moment,” Banse explains. While media coverage often highlights growing skepticism in Germany about U.S. trade policy and politics, “when you speak directly with CEOs and executives who are actively doing business in the U.S., the picture is more nuanced.”
Operations and partnerships largely continue as before, and investment activity persists. “Some of our clients are currently investing in production facilities in the United States,” he notes, pointing to a clear divergence between rhetoric and action.
For Banse, German businesses approach the U.S. with pragmatism. “Business decisions are primarily driven by pragmatism. German companies tend to separate political debates from economic opportunities,” he says.
If the market potential is attractive, companies continue to collaborate internationally, making economic sense the dominant factor rather than political sentiment.
Understanding the Mittelstand
Understanding the Mittelstand is essential for any company hoping to succeed in Germany.
“The German economy is heavily built around small and medium-sized enterprises, often family-owned companies,” Banse explains. While international attention often focuses on giants like BMW or Volkswagen, “the real backbone of the German economy is the large number of mid-sized, often family-owned companies operating in highly specialised markets.”
These companies are critical for employment, innovation and industrial production.
Common Mistakes for International Companies
Banse identifies common pitfalls for international companies entering Germany. “One of the biggest mistakes is underestimating the importance of the Mittelstand,” he warns.
Many focus only on major brands, overlooking the broader network of mid-sized opportunities. Another challenge is expecting rapid growth. “Germany is not a fast-moving market, but it is a very stable one. Companies that want to succeed here need patience and a long-term perspective.”
Tips for Startups and Cultural Insights
When asked about what U.S. startups should understand, Banse emphasises patience and preparation. “Many startups assume that regulation in Germany will immediately slow them down. In reality, the regulatory burden usually increases gradually as companies grow.” Startups often have more flexibility than expected in the early stages, but compliance requirements become more complex with expansion.
Cultural differences can also create challenges. “Relationship building is important in both countries, but in Germany partnerships tend to be built on a strong technical and professional foundation,” he says. Salespeople must have deep knowledge of their product or service, as performance is defined not just by speed or relationships but also by reliability and expertise.
Language can be another barrier. “Many Germans speak English, but they may feel less confident communicating in it. This can sometimes make it harder for international partners to fully understand someone’s personality or leadership style,” Banse notes.
Opportunities in AI and Technology
Despite these challenges, Banse sees strong potential for collaboration, especially in areas like artificial intelligence. American tech companies can work with German engineering firms to apply AI directly in industrial processes, optimising production, reducing energy consumption and increasing efficiency.
Regulatory frameworks such as GDPR or the EU AI Act may complicate matters, but “with the right preparation, American companies can successfully adapt to these regulations.”
Keys to Long-Term Success
Ultimately, Banse’s advice for international companies looking to build lasting success in Germany is straightforward: patience, local networks and trust. Investing time in relationships, maintaining a local presence and adopting a long-term strategy are key.
“Germany does have a reputation for strong regulation and bureaucracy. While there are certainly compliance requirements, they are often less intimidating than many companies expect once they understand how the system works,” he says.
With this approach, the country offers a stable and reliable market for international companies willing to commit.
