World City Guide

Business

Business Profile
Frankfurt ranks with New York, London and Tokyo as one of the world’s most important business cities. Some 42,000 businesses, generating more than 46 billion GDP, are registered in Frankfurt. In terms of revenue, some of the largest are Aventis, Deutsche Bahn AG and Degussa AG.

The Rhine-Main region provides some 2.2 million jobs and from this Frankfurt accounts for 569,400 of these, 83% of which are in the service sector. With the current economic climate, however, unemployment throughout the country has been rising, although Frankfurt’s unemployment rate (6.2%) remains lower than Germany’s national average (9.7%). Frankfurt airport (Fraport AG) is the largest workplace in Germany, providing 62,000 jobs. However, the company felt the knock-on effects of the events of 11th September, reporting a 4.7% drop in passenger numbers between June 2001 and June 2002. Nevertheless, Fraport AG is confident of an impending upswing. Considering that other German airports were reporting losses of up to 8.4%, Frankfurt airport has held up considerably well. Airfreight rose by 5.7%, helping to balance the passenger shortfall. Meanwhile, Frankfurt Hahn reported considerable profits and activity, prompting further investment into developing this burgeoning airport.

The city is home to a number of key national and international financial organisations, with 329 banks and 166 insurance companies providing employment for about 79,000 people in Frankfurt and generating business of over two billion Euros. These include the European Central Bank and the Deutsche Bundesbank (German Central Bank). Half of Germany’s largest banks (including Deutsche Bank, Dresdner Bank and Commerzbank) also have their headquarters here. The Frankfurter Brse (Stock Exchange) is the most important in the Federal Republic with a turnover of 5.1 trillion Euros. It is the fourth largest in the world, behind New York, Tokyo and London.

Manufacturing, including pharmaceuticals, metals, machinery, oil products, boats and beer, also plays a large role in the city’s economy, contributing 17% GDP per annum. The high technology sector is also increasingly important. Research flourishes in the city’s scientific institutions, including the Paul-Ehrlich Institute, the Max Planck Institutes for Biophysics and Brain Research, the Sigmund Freud Institute and the Senckenbergishe Nature Research Society.

Home to some 500 publishing and printing companies and host of the incredibly popular annual Book Fair, Frankfurt is the mainstay of the German book industry. It is also a centre for media and communications, with 410 companies involved in advertising and public relations, 50 in market research and many others in press, film and telecommunications.

Most businesses are located in the skyscrapers of the bank quarter, situated in the western part of the city centre. The Commerzbank tower is Europe’s highest office block, although city planners are pushing the limits with plans in the pipelines for a still higher Millennium Tower, which would rise 365m (1197ft) over a new quarter, the Europaviertel, near the city’s trade fair grounds. On and around Junghofstrasse is where financial business takes place. Messe Frankfurt GmbH is one of the largest trade fair organisations, positioned west of the bank quarter with around 50 fairs per year, welcoming up to 44,000 exhibitors and around two million visitors annually – the Book Fair alone attracted over 6000 exhibitors and more than 250,000 visitors in 2002. The trade fair site covers around 410,000 sq metres (134,513 sq ft) of exhibition space (indoor and outdoor). The new multi-functional Forum event centre opened in 2002, thanks to an investment of 33 million.

In addition, around 60,000 conferences and congresses are held annually at 180 venues in the city. The largest of these (the Festhalle Messe Frankfurt) has seating for over 10,000 delegates. The Tourismus+Congress GmbH Congress Bureau (tel: (069) 2123 0396) can offer advice and assistance with the organisation of congresses and conferences in Frankfurt.

Business Etiquette
Working hours are generally 0800-1700. Punctuality for both business and social events is extremely important. Frankfurters are impressed with efficiency and strong business sense and this is displayed in their business style – firm handshakes, formal use of business cards and an appreciation of straight talking. Business contacts must be addressed by their surname and by the formal ‘Sie’ for ‘you’. Academic and other titles should be used wherever applicable. Both men and women are expected to wear suits – men should also wear a tie. Visitors to Germany should note that in some cases, instead of applauding, German businessmen and women might rap their knuckles on the table.

Business socialising mainly takes place over lunches, especially on Friday, as many offices close at around 1300. After-work drinks are a more casual affair between colleagues and seldom involve clients.