Hamburg has grand ambitions, not just to increase its size, but also to improve its quality of life and business environment. It is already one of Germany’s most dynamic economic centres, thanks to its ability to retain and attract new companies and inhabitants.

Even though the economy is characterised by internationally renowned companies like Airbus, Beiersdorf, Hapag Lloyd, Helm, Olympus, Otto Versand, Panasonic, Tchibo and the major German publishing houses, it remains competitive on location costs.

Small and medium-sized firms are also thriving, not just in the regional economy, but also in international markets. Over 100,000 firms and businessmen are registered with the city’s Chamber of Commerce and over 10% of Germany’s top 500 companies are located in Hamburg.

Trading history

With a long Hanseatic trading heritage, the city has become a Baltic staging post for overseas trade, the major hub through which goods of every kind pass on their way from northern Europe to the rest of the world. On the back of this trade, Hamburg has built a diverse, internationally orientated economy spanning logistics, aviation, manufacturing, media, services and the life sciences.

Last year, the city’s GDP reached €77bn, equivalent to €44,500 per capita, and this commercial wealth has been invested wisely, in education, health and infrastructure. Hamburg has 10 public universities, four private colleges, 250 research institutes and 72 health clinics. Its transport infrastructure is excellent, with an enlarged international airport, hourly high-speed trains to all major German cities and a public transport network of underground and overland trains and buses. Hamburg’s port is the fastest growing in Europe and the ninth largest in the world.

Recent developments

Recent projects include the €6bn-€7bn Hafen City development that will recreate the inner city over the next 20 years. Other developments are: the €1.3bn extension to the site where Airbus is developing its new wide-bodied aircraft (A380); the €640m Altenwerder Container Terminal; the €430m Europa Passage shopping mall; and the €400m extension of Hamburg airport.

Foreign trade has reached a volume of more than €1000bn, supporting a growing logistics sector. More than 145,000 jobs in a vast range of industrial and service sectors are indirectly dependent on the port alone.

Creative media and technology companies are thriving. Established global players such as IBM, AOL, SAP, Google and Microsoft Business Solutions have offices in Hamburg. There are also nearly 11,000 media companies in the city, a 74% rise since 1995.

Life sciences have also flourished, with major companies involved in medical technology, diagnostics, biotechnology and pharmaceuticals. More than 30 working groups from Hamburg’s universities and research facilities are engaged in research into nanotechnology.

Aviation industry

Hamburg has been particularly successful in developing its aviation industry, which ranks alongside Seattle and Toulouse as one of the world’s leading civil aviation centres. The entire spectrum of aviation is represented – from aircraft construction and maintenance to servicing and training.

Overall, more than 30,000 people work for aviation companies, such as Airbus, Lufthansa Technik, Hamburg Airport and Hanse Aerospace, and a regional network of about 300 small and medium-sized suppliers. Hamburg-based research teams play an important role in developing new aircraft. Their work spans cabin design, intelligent fire detection, aircraft assembly and many other processes.

The sector’s rapid growth is thanks largely to Airbus’s decision to build and fit its A380 wide-bodied commercial carrier in Hamburg. Sections of the A380 – the largest commercial aircraft in production – are transported to France for assembly before being flown back to Hamburg to be fitted out.

“Hamburg is proving its competence as one of the world’s leading locations for the civil aviation industry,” says Gerhard Puttfarcken, general manager of Airbus Deutschland. Airbus will create a further 2000 jobs at its Hamburg plant by 2007 as part of the A380 programme; it has already taken on 1500 additional employees.