Developing business and attracting new companies: Hamburg Invest reaches record value in business investment28 February 2023
In the course of 2022, Hamburg Invest, the city’s economic development agency, supported 52 companies in setting up business in Hamburg. These companies invested a total of €828 million in Hamburg last year, which is an all-time high. Moreover, some 7,400 jobs were created or secured in Hamburg as a result of these activities.
Developing business and attracting new companies: Hamburg Invest reaches record value in business investment
The effects of the COVID-19 pandemic and the geopolitical situation caused by the Russian invasion in Ukraine continue to curb investment. The price increases in construction and energy as well as the real estate industry’s price expectations for future projects have a further dampening effect.
Nevertheless, Hamburg as a business location remains in demand both nationally and internationally. Hamburg Invest was thus able to support 52 new companies settle in Hamburg alongside 39 expansion projects at the location. Of the newly settled companies, 25 were from countries other than Germany.
Compared to the previous year, the investment volume in 2022 rose from €752 million to €828 million, hitting a new record level. The approximately 960 companies supported by Hamburg Invest are predominantly from Germany’s SME sector (around 600) or are startups (around 200).
In the course of 2022, Hamburg Invest brokered 12.2 hectares of commercial space to companies. Of this, around 3.7 hectares were privately owned and around 8.4 hectares were owned by the municipality, including six sites owned by HIE, a Hamburg Invest subsidiary.
Hamburg’s Minister of Economy, Dr Melanie Leonhard, explained: “More than 7,400 people have found new jobs or their jobs have been secured, respectively – which is a great success as this also means that we are retaining labour and skilled workers in Hamburg. The majority of new jobs were created in the mobility, life sciences, energy and logistics sectors. These sectors are highly dynamic and Hamburg is a location that is particularly attractive to companies from sunrise industries. As well as generating jobs and tax revenues, new companies contribute by strengthening Hamburg as a centre of innovation while also laying the foundation for future value creation through businesses and innovations that increase the quality of life in Hamburg also in the long term.”
Dr Rolf Strittmatter, managing director of Hamburg Invest GmbH, said: “Despite global economic uncertainties and changes in financing conditions, we recorded strong investment activity by Hamburg’s business sector also in 2022. Demand for sites is unbroken, especially when it comes to large spaces that can be used for industrial and commercial purposes. What is more, companies need space to be able to implement innovations. These two factors have a positive impact on Hamburg as a business location. Therefore, as part of our Regional Innovation Strategy, we expressly support technology- and knowledge-based companies with high-value-adding jobs in finding suitable space in Hamburg.”
The results in figures
in million EUR
Study confirms benefits for city’s economy as a whole
A recent study by CIMA Institut für Regionalwirtschaft GmbH, a German research institute, has found that the activities of Hamburg Invest have led to value-added effects totalling €1.6 billion in 2022. In addition to the direct and indirect effects of investment, the individuals performing these 7,400 jobs created/secured as a result of relocation also play an important role as they contribute to local value creation e.g. as consumers and taxpayers. According to the institute’s calculations, the fiscal effects of this amount to approx. €160 million.
Focus on startups and on attracting companies in the field of innovation
For its advisory services provided e.g. as part of the startup consultation hour and ad-hoc consultations, Hamburg Invest’s dedicated Startup Unit continues to record sustained demand from various technology sectors. The Startup Unit aims to strengthen and market the city’s startup ecosystem through a variety of event formats. In addition to this, 2022 saw the launch of two new projects commissioned by the Hamburg Ministry of Economy and Innovation: the online platform “Startup City Hamburg” and the “Scaleup Landing Pad Hamburg” project. The Scaleup Landing Pad is targeted at growing startups from abroad and aims to attract promising new enterprises and to accompany them along their path of setting up business in Hamburg.
Due to the Russian-Ukrainian war and the sanctions imposed on Russia, this source market virtually collapsed last year and will not play a relevant role for new settlements for some time to come. Likewise, the international investment sector continues to be under great pressure due to the geopolitical situation in the Asian region and the restrictive measures that are in place there to contain the pandemic. At the same time, travel and congress business has now largely resumed, which opens up new perspectives. Activities in source markets such as Singapore, the United States, Great Britain, Japan, Turkey or Poland have been expanded, which should pay off especially in 2023. Beyond Germany, strategic source markets such as India, Denmark and Britain will continue to be the focus of activities this year, even though the cost burden caused by the war in Ukraine alongside general cost increases will certainly have a significant impact on investment in 2023.