Opportunities for US companies in Europe abound. They always have and will, the question is one of timing. US exporters to Europe, of both goods and services, achieved an accomplished and steadily growing >$500Bn in 2014. This is inextricable linked to the existing pool of business investment by US companies in the EU. The US is the largest external investor in the EU, with 33% of the total, mostly in the business services and software sectors. US investment in the EU accounts for >50% of all U.S. direct investment abroad and is valued at >$2.5T. Europe has been a prime target of U.S. exports and investment since U.S. firms first ventured abroad in the mid-1800s. This process accelerated after 1945, as the European countries rebuilt their economies, with US aid, the Marshall Plan and later as the European economic union (EU) was formed and developed into today's 28 countries , >500M citizens with an economy of >$17.5T (larger than that of the US).
Now, that is a great starting position for US > EU export and business development. This should be coupled with the impending TTIP agreement (addressing regulation and tariffs..), please see the TTIP monthly blog, we can expect further growth in US to EU export and business development in 2015. To support that progress, we at ibt partners created, some years back, a dedicated LinkedIn Group called Export US to EU Group, this is the Online group focused upon US exports to Europe. Helping US companies, of all industries and organizational sizes, develop their exports to Europe. Join today and enjoy the benefits of a online community of professionals, seeking to develop US exports to European markets, through distributors, direct sales, trade shows, representation, web sites and online marketing.
When faced with the question of opportunities in the EU for 2015, the immediate response is look online. We see big ecommerce growth in the EU, both business to business (B2B) and business to consumer (B2C). This observation is in fact an extension of the momentum we have been tracking over the recent years as EU internet users went above 375M and eshoppers above 225M. Ecommerce market value in the EU is >$400Bn and growing at 18%.
There are three big eCommerce markets in the EU, led by the UK at $>150Bn, Germany with $80Bn and then France >$70Bn. The level of internet penetration in these three countries is 87%, 84% and 83% respectively, which is to be compared to an EU average of 75% and a US average of 81%. The conclusion is that not only are Europe's three biggest economies the obvious target for US exporters, but factor in the leading uptake in online and ecommerce.
The first market to target would be the United Kingdom, with an expected GDP growth of 2.7% (EU expected average is 1.5%) in 2015 and the largest ecomerce economy by >$70Bn (88%) larger than that of Germany. E-commerce represents >16% of retail sales in the UK.