Hessen 2

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2Facts and

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Hessen A

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Editorial OfficeAnic Rossbach-Jung

Composition and DesignIris KaczmarczykWiesbaden

PrintAhlfeldt & Company GmbHWiesbaden

Cover PictureLibrary University of Applied Sciences DarmstadtPhoto: Thomas Eicken

The publisher does not assume any warranty for information and addresses represented here. The information is based on data provided by suppliers and was put together with great care. Any reproduction – even partial – or use of the addresses for commercial purposes requires the explicit written approval of the publisher. The stating of the source is absolutely necessary. The present publication was financed from household budgets of the Ministry for Economics, Traffic, and State Development of Hessen. This brochure may neither be used by political parties nor by election candidates or as an election aid during elections for the purpose of election advertisements. This applies to elections for Europe, Bundestag and local elections.In particular, misuse includes the disbursement at election events and information booths of political parties, as well as insertion, printing, as well as adhesive bonding of political-party information or advertisement. Also forbidden is the forwarding to a third party for the purpose of political campaigning. Even without any timely connection to elections, it is not permitted to use this brochure for political party purposes which could be understood as a support by the state government for individual parties.The stated limitations apply independent of through what means and in what quantity this brochure was given to the recipient. The political parties, however, are entitled to use the brochure for the purpose of informing of their own members.

Date: December 2012

About Us

Hessen Trade & Invest GmbH Konradinerallee 9 65189 Wiesbadenphone: +49 (0) 611 95017-85Fax: +49 (0) 611 95017-8385 info@htai.de www.htai.de

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Table of Contents

Economic Structure Developments in the Dual Educational Market in Hessen 4Comparison of Select Structural Data among German States 5Hessen and Its Government Districts 6

InfrastructureHessen in Germany 7The Largest Airports in Europe 8

Financial Center FrankfurtBanking Institutions 9

Trade Fairs and ExhibitionsInternational Exhibition Grounds Frankfurt 10International Trade Fairs and Exhibitions 11

Employment Markets and Employment RatesDevelopment of Employment Rates 12Employment Rates in the Industry and Service Sector 13The Ten Largest Employers in Hessen 14

Hessen InternationalHessen - GDP compared to Selected Countries 15The Most Important Export Goods 16The Most Important Trade Partners 17Foreign Direct Investments in Hessen 18Origin of Foreign Investment 18

Research and DevelopmentPatent Applications 19Selected Universities and Universities of Applied Sciences in Hessen 20

4

Economic Structure

Developments in the Dual Educational Market in Hessen

In the next few years, a large number of qualified skilled workers in Hessen will be leaving the labor force for de-mographic reasons. Educational, vocational, and aca-demic training activities represent a central means for protecting the specialized labor force. Vocational educa-tion in Germany and in Hessen continues to take place primarily within the dual system at the training company and the vocational school.

Study: Vocational Training in Hessen

The developments in this training market are at the cen-ter of the “Vocational Training in Hessen” report that is prepared annually by the Hessen Agency on behalf of the Hessian Ministry of Economics. The study explains that the situation for youth in Hessen in the training market has improved significantly, particularly in the past two years. The positive development, among other things, is attributable to a rising availability of jobs in businesses.

These positive developments are also reflected in the de-clining school enrollment in the measures of the transi-tion area. The transition area alternatively prepares youths without an apprenticeship contract for admission into an apprenticeship or occupation. Since 2006, student en-rollment has decreased here by 30 percent. This reflects the positive development onto the dual training market in Hessen.

Dual training ensures skilled laborers

The potential of the dual training system for securing skilled laborers is not being used fully, despite the posi-tive developments. In north and central Hessen in partic-ular there are still too few places that offer dual training for young people. In many professions, however, a change is looming, even in the long-run. When com-pared over many years (since year 2000), many more employees and, at the same time, less dual training par-ticipants are counted. Apparently, many companies do not cover their labor requirements with apprentices, but

rather increasingly with other personnel - including for-eign employees.

In south Hessen, which essentially offers the best training market conditions for young people, the supply and de-mand for training places obviously does not always seem to match or fit each other. The result is that, despite the current good economic development, many jobs remain unfilled and many young people remain without an ap-prenticeship contract.

In the long-term, it could become more difficult for busi-nesses to have apprenticeship positions as a result of the demographic shift. The number of school graduates might fall from the current 60,000 to less than 50,000 youths by 2025. There is a threat of a shortage of skilled laborers that would have a negative impact on Hessen’s competitiveness. This shrinking potential requires strate-gic securing of skilled laborers. For this reason, the dual system forms a central pillar that offers young people a wide range of vocational career as well as personal de-velopment opportunities.

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Economic Structure

Comparison of Select Structural Data among German StatesSelected German States 2011

Area in km2² 357,121 21,115 35,751 70,550 47,613 34,092 19,854 16,172

*Population per 1,000 81,751 6,067 10,754 12,539 7,918 17,845 4,004 2,235

*Residents per km2² 229 287 301 178 167 523 202 138

**Unemployment Rate (as % of the dependent labor force) 6.6 5.6 3.7 3.4 6.2 8.0 5.2 8.1

Per Employee Gross Domestic Product

in the respective prices (EUR) 62,550 71,789 65,648 65,312 59,588 64,553 59,365 47,071

Gross Value Added (in billion EUR) 2,296 204 336 399 200 508 101 43

***Third Sector (in %) 69.0 75.8 61.5 66.8 66.9 70.0 63.7 64.3

Baden-Württemberg

D Hessen Bavaria Lower- Saxony

North Rhine-Westphalia

Rhineland-Palatinate

Thuringia

Source: Statistisches Bundesamt (Federal Statistics Office), Bundesagentur für Arbeit (Federal Employment Office), Arbeitsgemeinschaft VGR der Länder, own calculation * Date June 30, ** Reporting month June 2012, *** Third Sector measured in gross value added

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Economic Structure

Hessen and Its Government Districts 2011

Administrative Area Population* Residents* Labor Force Subject to Social Security 2011*Districts in km2 per km2

Source: Hessisches Statistisches Landesamt (Statistical Office), own calculations * Date June 30.2011 ** Date December 31.2011

Darmstadt Administrative District

Gießen Administrative District

Kassel Administrative District Kassel District

Werra-Meißner

Vogelsberg

Main-Kinzig

Offenbach-District

Odenwald

Total Manufacturing Service Industry (%) Sector (%)

Kassel 8,289 1.2 147 424,770 32.9 66.4

Gießen 5,381 1.0 194 331,423 34.9 64.7

Darmstadt 7,445 3.8 511 1,516,346 20.4 79.3

Hessen 21,115 6.1 287 2,272,639 24.9 74.7

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Munich Munich

CologneCologne

HanoverHanover

Nuremberg

Nuremberg

Distances in kmto from from Frankfurt KasselBerlin 560 380Bonn 175 260Bremen 475 285Dresden 464 350Düsseldorf 230 235Erfurt 269 190Hamburg 539 310Hanover 357 165Kiel 599 400Magdeburg 426 232Mainz 40 225Munich 423 508Potsdam 515 319Saarbrücken 204 415Schwerin 607 411Stuttgart 210 406Wiesbaden 35 220

Hessen in the Intercity Railway Network

Hessen in the Federal Highway Network

Infrastructure

Hessen in Germany

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Infrastructure

Largest Airports in Europe Traffic performance pursuant to category, January to December 2011

Source: ACI Europe and Business Report Fraport AG

Aircraft Movements

in 1,000

Cargo in t(Total traffic)

in 1,000 t

Passengers(Total traffic)

in million

Frankfurt Main 2,215 487.3 56.4

Paris Charles de Gaulle 2,096 505.5 61.0

London Heathrow 1,569 479.2 69.4

Amsterdam 1.550 440.9 49.8

Munich 395 405.0 37.8

Madrid Barajas 422 398.6 49,6

Rome Fiumicino 152 324.0 37.7

Frankfurt AirportAmong the Top 10 Worldwide

Air traffic numbers – whether passengers, plane movements, or cargo – underscore the importance of the airport for the demand for worldwide mobility. Airport City offers the highest mobility through its optimal network of airplanes, trains, and cars. It is one of the leading global intermodal transportation hubs in central Europe with the best connection in the whole world.

107 airlines serving 275 destinations in 111 countries. Passengers: 56,4 million air travelers per year, 4,630 passenger flights per week Freight: 30 airlines serving 84 destinations in 45 countries 2.2 million tons of air freight, approximately 250 freight flights per week Largest hub in Europe (54 % transfer passengers)

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Financial Center Frankfurt

With more than 260 German and foreign banks, as well as the German Central Bank and the European Central Bank (ECB), Frankfurt enjoys the leading position in Germany and a prominent position on the European Continent:

Approximately 74,500 people work in Frankfurt’s financial services sector More than 90 % of the total German stock market turnover is earned in the financial center Frankfurt Stock exchange trade: Number 6 among the world’s stock exchanges Futures market EUREX: Number 1 worldwide Since the introduction of the Euro monetary policy in the Euro currency sector is managed by the ECB from Frankfurt

Financial Center Frankfurt

Banking Institutions September 30, 2012

Banks in Frankfurt (total) 263

thereof: Banks with Headquarters in Frankfurt 225

thereof: Domestic banks 66 Foreign Banks 159

Subsidiaries of Foreign Banks 38

Source: German Central BankBanks and subsidiaries with headquarters within and outside Frankfurt (is discontinued after 2005)

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Frankfurt International Trade Fair Exhibition CenterSuccessful in high-growth markets

With 578,000 square meters, the Frankfurt International Trade Fair Exhibition Center is the third largest trade fair grounds in the world and offers the best conditions for exhibitors and visitors from all over the world with its leading global trade fairs for consumer goods, lifestyles, textiles, automotive technology, architecture, and technology.

A geographically central location, the best travel connections, direct flights from and to international airports, around 15,000 parking spaces, and more than 90,000 beds make Frankfurt an attractive exhibition venue.

In 2011, the trade fair association recorded 100 trade fairs and events with approximately 68,800 exhibitors and 3.4 million visitors attending worldwide. Bringing in 467.5 million Euros, it reached its highest grossing fiscal year to date.

Trade Fairs and Exhibitions

International Exhibition Grounds Frankfurt Summary 2011

Trade Fairs and Exhibitions 37 28

Exhibitors 38,184 24

thereof: Inland 14,686 21 Abroad 23,498 27

Leased Area (in millions of square meters) 1.37 22

Visitors (in million) 2.31 24

Number Share of Trade Fairs in Germany (%)

Source: Messe Frankfurt (Frankfurt Fair), Business Report / AUMA-Report 2011

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Trade Fairs and Exhibitions

Trade Fairs Calendar 2013 for HessenInternational Trade Fairs and Exhibitions (selection)

Source: Messe Frankfurt (Frankfurt Fair)

2013 01/09 – 01/12 Heimtextil – International Trade Fair for Home and Contract Textiles Frankfurt am Main01/27 – 01/31 Christmasworld – The World of Event Decoration International Frankfurt Fair Frankfurt am Main01/26 – 01/29 Creativeworld – International Trade Fair for Art and Craft Supplies Frankfurt am Main01/26 – 01/29 Paperworld – International Trade Fair for Paper, Office Supplies and Stationery Frankfurt am Main02/15 – 02/19 Ambiente – International Consumer Goods Fair for the Sectors Dining – Giving – Living Frankfurt am Main03/09 – 03/11 I.L.M. – International Leather Fair Offenbach – Winter Styles Offenbach am Main03/12 – 03/16 ISH – World‘s leading Trade Fair for The Bathroom Experience, Building, Energy, Air-conditioning Technology and Renewable Energies Frankfurt am Main04/10 – 04/13 Musikmesse – International Fair for Musical Instruments, Sheet Music, Music Production and Music Business Connections Frankfurt am Main04/10 – 04/13 Prolight + Sound – International Trade Fair of Technologies and Services for Events, Installation and Production Frankfurt am Main05/04 – 05/09 IFFA – International Fair for the Meat Industry Frankfurt am Main05/21 – 05/23 IMEX – The Essential Worldwide Exhibition for Incentive Travel, Meetings and Events Frankfurt am Main 06/09 – 06/10 Hair & Beauty – International Trade Fair for the Hairdressing and Cosmetic Industry Frankfurt am Main06/10 – 06/13 Texprocess – Leading International Trade Fair for Processing Textile and Flexible Materials Frankfurt am Main06/11 – 06/13 Techtextil – International Trade Fair for Technical Textiles and Nonwovens Frankfurt am Main08/24 – 08/28 Tendence – International Consumer Goods Fair for the Autumn-Winter and Christmas Season Frankfurt am Main09/10 – 09/22 IAA PKW – Leading International Trade Fair for Mobility, Transportation and Logistics Frankfurt am Main09/21 – 09/23 I.L.M. – International Leather Fair Offenbach – Summer Styles Offenbach am Main10/09 – 10/13 Frankfurt Book Fair – International Trade and Consumer Fair for Books, Multimedia and Communication - main focus: Brazil - Frankfurt am Main11/05 – 11/07 Airtec – International Aerospace Supply Fair Frankfurt am Main

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Employment Markets and Employment Rates

Development of the Employment RatesAnnual Average Fluctuations 2001 – 2011 in %

Source: Statistical offices of the Federation and the Länder, own calculations

Agriculture and Forestry,Fishing

Manufacturing Industry without

Construction

Construction Commerce, Hotel and Restaurant Industry,

Transportation Sector

Public and Private Service Providers

All Economic AreasFinancing, Leasing,

Corporate Services

Hessen Germany

20.0

15.0

10.0

5.0

0.0

- 5.0

-10.0

-15.0

-20.0- 14.7

- 7.9

- 13.1

-7.6- 3.4

- 11.8

0.72.9

14.3

23.9

11.49.1

3.0 4.3

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Employment Market and Employment Rates

Employees in the Industrial and Service SectorsLabor force subject to social security contributions in December 31, 2012

Source: Federal Employment Agency

Industrial Sector Including: Manufacturing Industry Construction Sector

Services Including: Automobile Trade, Maintenance and Repair Transport and Storage Hotel and Restaurant Industry Information and Communications Financial and Insurance Services Economic Services Public Administration, Defense; Social Security Education and Instruction Health Care and Welfare Other Services, Private Households

Total number of labor force subject to social security

Hessentotal

Hessenin %

Germanytotal

Germanyin %

share of Hessen in Germany in %

583,008422,647105,435

330,302158,29969,39978,911

139,929325,355134,96986,135

259,443106,789

2,272,539

25.718.64.6

14.57.03.13.56.2

14.35.93.8

11.44.7

100.0

8,854,9346,486,4101,617,654

4,201,0191,479,921

849,149861,870

1,010,5153,675,6831,707,3351,124,3733,699,7441,322,947

28,787,490

30.822.55.6

14.65.12.93.03.5

12.85.93.9

12.94.6

100.0

6.66.56.5

7.910.78.29.2

13.88.97.97.77.08.1

7.9

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Ranking/Company Name Branch of Trade Employees in Hessen

Employment Market and Employment Rates

The Ten Largest Employers in Hessen

1 Deutsche Lufthansa AG Transport 37,000

2 Deutsche Bahn AG Transport 23,400

3 Deutsche Post Gruppe Telecommunication, Transport, Banking Industry 19,400

4 Rewe-Gruppe Trade 19,100

5 Fraport AG Transport 19,000

6 Deutsche Telekom AG Telecommunication 16,900

7 Adam Opel GmbH Automobile Industry 16,000

8 Volkswagen AG Automobile Industry 13,200

9 Continental AG Automobile Supplier 13,100

10 DZ Bank Group Banking Industry 11,000

Source: Joint compilation by Hessen Agentur and state bank of the states of Hessen and Thuringia (Helaba)

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Hessen International

Hessen - GDP compared to Selected Countries 2011Gross Domestic Product per Capita in 1,000 Euro

Source: Hessisches Statistisches Landesamt (Statistical Office)

80

70

60

50

40

30

20

10

0

Luxe

mbu

rg

Nor

way

Sw

itzer

land

Den

mar

k

Sw

eden

HESS

EN

Net

herla

nds

Aus

tria

Irela

nd

Finn

land

US

A

Bel

gium

Ger

man

y

Icel

and

Fran

ce

EU

RO

-Zon

e

GB

Italy

EU

27

Spa

in

Cyp

rus

Slo

veni

a

Mal

ta

82.1

70.5

60.5

43.2 41.1 37.6 36.1 34.735.7 35.4 35.2 33.7 31.7 31.6 30.6 29.6 27.9 26.0 25.2 23.1 21.1 17.6 15.5

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Hessen International

The Most Important Export Goods

Group of Goods (finished goods) Exports 2011 Imports 2011 in million € in million €

Chemical and Pharmaceutical Goods 14,465 9,763

Vehicles, Vehicle Parts and Accessories 6,414 11,430

Machinery 6,795 8,225

Electrical Goods 5,834 10,357

Iron and Metal Goods 3,827 4,746

Fine Mechanical and Optical Goods 3,770 4,007

Goods from Synthetics 1.531 1,105

Natural Rubber Goods 1,268 1,538

Paper and Paper Goods, Printing Goods 1,156 834

Total 55,390 75,862

Source: Hessisches Statistisches Landesamt (Statistical Office), calculation by Hessen Agentur

Chemistry and Pharmaceuticals are Hessen‘s „export hits“

The Hessian exports have not only reached their previous levels from before the crisis, but have now considerably exceeded them. In 2011 the Hessian economy exported goods worth 55.4 billion Euros - 8.1 percent more than in the previous year. On the import side, Hessen recorded a growth of 11.8 percent with an import volume of 75.9 billion Euros.

Chemical and pharmaceutical products lead the ranks of the most important export goods with a total volume of 14.5 billion Euros. This is equal to more than one quarter of all Hessian exports. It is followed by products from the engineering and automotive manufacturing industries as well as from the electrical engineering industry. The most important import goods are vehicles and vehicle parts as well as electrical, chemical, and pharmaceutical products and machinery worth 39.8 billion Euros.

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Hessen International

The Most Important Trade Partners of Hessen 2011

Export (special trade) Hessen Share of Country in million € total in %

United States 5,171 9.3

France 4,606 8.3

United Kingdom 3,913 7.1

The Netherlands 3,443 6.2

Italy 3,330 6.0

People’s Rep. of China 2,578 4.7

Austria 2,491 4.5

Belgium 2,321 4.2

Switzerland 2,081 3.8

Poland 1,993 3.6

Total 55,390 100.0

Source: Hessisches Statistisches Landesamt (Statistical Office), calculation by Hessen Agentur

Import (general trade) Country Hessen Share of in million € total in %

People’s Rep. of China 7,213 9.5

United States 6,264 8.3

The Netherlands 5,734 7.6

France 5,329 7.0

Italy 5,089 6.7

United Kingdom 4,698 6.2

Switzerland 4,427 5.8

Belgium 4,121 5.4

Japan 3,203 4.2

Spain 2,244 3.0

Total 75,862 100.0

USA is the most important target country for Hessian exports

USA was the intended destination for 9.3 percent of all Hessian exports in 2011, and, in return, Hessen imported 8.3 percent of its goods from the United States. France follows in second place with 8.3 percent, followed by the United Kingdom (7.1 %) and the Netherlands (6.2 %).

In the meantime, based on its high imports, China has become Hessen‘s second most important foreign trade partner and has shifted the traditionally important trading partners Italy and the United Kingdom down to the ranks of five and six. The overwhelming portion of Hessian foreign trade still takes place with trade partners in Europe. The value of exports to the EU rose by 5.1 percent to 32.1 billion Euros.

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Hessen 14.7 %

Other 9 Federal States 14.9 %

Berlin, Hamburg Bremen 14.8 %

Bavaria 19.0 %

Baden-Württemberg 9.2 %

North Rhine- Westphalia 27.4 %

Hessen International

Foreign Direct Investments in Hessen

Source: Deutsche Bundesbank (German Federal Bank)

Share in the Total Holdingsin the Federal Republic of Germany

Origin of Foreign Investments

Country in Billion € Share in %The Netherlands 21.3 27.6France 8.7 11.3Luxembourg 7.9 10.2United Kingdom 7.6 9.9Switzerland 5.7 7.4United States 5.2 6.7Republic of Korea 3.4 4.4Italy 2.2 2.9Sweden 2.1 2.7Japan 2.1 2.7

Total 77.1 100.0

Federal Republic: 522.9 Billion €Hessen: 77.1 Billion €

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Baden-WürttembergBavariaAverageHamburgNorth Rhine-WestphaliaHessenLower SaxonyRhineland-PalatinateSaxonyThuringiaSaarlandBerlinBremenSchleswig-HolsteinBrandenburgSaxony-AnhaltMecklenburg-West Pomerania

Research and Development

Patent ApplicationsPer 100,000 inhabitants 2011

Source: Deutsches Patentamt, München (German Patent Office)

133

106

57

5640

39

37

29

25

2525

23

23

17

1413

10

20

Research and Development

Selected Universities and Universities of Applied Sciences in Hessen

Number of StudentsWinter Semester 2011/12 Engineering Mathematics,

Natural Sciences

Majors (selection)

MedicineUniversities and Universities of Applied Sciences Law, Economics,

Social Sciences

Source: Hessisches Ministerium für Wissenschaft und Kunst (Ministry for Science and Art in Hessen)

Technische Universität Darmstadt 24,093

Goethe-Universität Frankfurt 40,800

Justus-Liebig-Universität Gießen 25,055

Philipps-Universität Marburg 21,980

Universität Kassel 21,361

European Business School 1,578

Frankfurt School of Finance & Management 1,371

Hochschule Darmstadt 12,013

Fachhochschule Frankfurt 10,410

Fachhochschule Fulda 5,830

Technische Hochschule Mittelhessen 13,059

Hochschule RheinMain 10,055

Hochschule Fresenius 1,462

Total Students at Universities in Hessen 208,742