City of Munich Department of Labor and Economic Development Munich as a business location. Facts and Figures 2015 City of Munich Department of Labor and Economic Development Herzog-Wilhelm-Strasse 15 80331 München Germany Economic data Phone ++49 89 233-25325 Economic development Phone ++49 89 233-24782 www.wirtschaft-muenchen.de www.business-munich.de Munich as a business location. Facts and figures 2015 Published by the Department of Labor and Economic Development, February 2015, Vol. No. 290 Dear Reader, The facts and figures presented in this brochure give you an updated overview of the many and varied aspects of the economy in and around Munich. The numbers, tables and diagrams highlight the Bavarian capital’s status as a business location the huge potential – witness the impressive labor market and employment figures, as well as the data for key high-tech industries and clusters. Munich’s success is rooted in the singular diver- sity of its economic structure. Important players range from established global brands to start-ups in every industry from information and com- munication to automotive engineering to biotechnology and pharma- ceuticals. Numbers for the city’s cultural and creative industries are also presented. Regarded as an engine for other economic sectors, this indus- try has a positive and formative influence on Munich’s future. The whole, colorful spectrum of Munich’s economic structure is reflected in a list of selected companies that have a footprint in the region. Alongside key economic data, the brochure also documents typical strengths such as Munich’s standing as a venue for higher education and science, as well as its popularity as a tourist destination. Data for trade fair operator Messe München, the city’s airport and the local passenger transport utility testify to the powerful capabilities of local government services and affiliated companies. Facts about the development of Munich’s office property market, major projects in the pipeline and construction planning add the finishing touches. Josef Schmid Deputy Mayor and Head of the Department of Labor and Economic Development 2 Munich as a business location – Department of Labor and Economic Development Contents How Munich ranks compared to other cities 3 Economic development in Munich 4 Economic development in the Munich Metropolitan Region 5 Employment in Munich 6 Sectors and clusters in Munich 8 Selected companies in the Munich region 12 Munich as a hub of knowledge 14 Local government finance 15 Real estate in Munich 16 Munich’s infrastructure 18 The Munich economic region Munich commands top rankings in comparison with other German and international cities. How Munich ranks compared to other cities Institute and customer Sample Ranking based on Position “City Rankings 2014” 69 large Assessment of the level and First place for the IW Consult, commissioned by German cities dynamism of economic devel- City of Munich Wirtschaftswoche and opment and prosperity based Immobilienscout 24 (12/2014) on economic and structural indicators “European Regional Economic 294 regions in Identification of those regions/ Sixth place for the Growth Index – E-REGI 2014” 32 European cities with the greatest short- to City of Munich LaSalle Investment Management countries medium-term development (10/2014) potential based on economic and structural indicators “Mercer Quality of Living Ranking 2014” 223 cities Assessment of quality of life Fourth place for the Mercer – global management consultant worldwide based on political, social, City of Munich (6/2014) economic and environmental considerations “Prognos Future Atlas 2013 – Germany’s 402 adminis- Assessment of the economic First place for the Regions Compete for the Future” trative districts situation and development in administrative Prognos in cooperation with Handelsblatt in Germany rural and urban administrative district of Munich (11/2013) districts in terms of demograph- Second place for ics, the labor market, competi- the City of Munich tion, innovation, prosperity and social conditions Munich as a business location – Department of Labor and Economic Development 3 Economic development in Munich Economic productivity is high in Munich, which also has the highest purchasing power of any large German city. Munich’s gross 2000 2005 2010 2011 2012 domestic product (GDP) GDP in € billion (at current prices in each year) 63.36 67.87 75.88 80.82 83.46 Population and Population GDP GDP per gainfully share of GDP (2013) in € million (2012) employed person in € (2012) Bavaria 12 604 244 473 568 68 066 Munich region 2 768 488 139 964 82 051 City of Munich 1 407 836 83 461 82 728 Outlying districts 1 360 652 56 503 81 070 Munich region = City of Munich and its outlying districts Munich’s share Munich’s share of Bavaria’s GDP of Bavaria’s population 17.6 % City of Munich 11.2% City of Munich 11.9 % Outlying 10.8 % Outlying districts districts 70.5% Bavaria (excluding 78.0 % Bavaria (excluding the Munich region) the Munich region) Source: Bavarian Office of Statistics and Data Processing Per capita purchasing Berlin 19 023 power in 2014 in € Stuttgart 22 656 Hamburg 22 833 Cologne 23 124 Frankfurt/Main 23 836 Munich 29 689 Bavaria 23 411 Germany 21 441 0 000 5 000 10 000 15 20 000 25 000 Source: Axciom Deutschland GmbH 4 Munich as a business location – Department of Labor and Economic Development Economic development in the Munich Metropolitan Region A diverse structure of industry and healthy dynamism combine to make the Munich Metropolitan Region one of the leading economic regions in Europe. Munich Germany Bavaria Metropolitan Region Population in 2013 (millions) 80.8 12.6 5.8 Surface area (in km2) 357 100 70 550 25 548 GDP in 2012 (in € billion) 2 645 473.6 247.8 Employees registered for social security in 2013 (millions) 29.62 4.95 2.34 Unemployment rate in 2013 (in %) 6.9 3.8 3.6 Source: Bavarian Office of Statistics and Data Processing, Federal Statistical Office N Source: Munich Metropolitan Region (EMM e.V.) Munich as a business location – Department of Labor and Economic Development 5 Employment in Munich A balanced economic and employment structure is one of Munich’s most valuable assets. Distribution of 5.6 % Other public and 0.1 % Agriculture, forestry, mining employment private services in 2014 Employees registered 11.2 % Healthcare and 12.4 % Manufacturing for social security social sector 3.5 % Education 4.1 % Construction, energy and teaching and water supply 4.8 % Public administration 18.2 % Retail, catering, transportation 24.5 % Property, consultancy, business services 7.6 % Financial and insurance services 8.0 % Information and communication Number of employees registered for social security in 2014 Agriculture, forestry, mining 526 Manufacturing 96 050 Construction, energy and water supply 31 817 Retail, catering, transportation 141 019 Information and communication 62 339 Financial and insurance services 59 044 Property, consultancy, business services 189 870 Public administration 37 455 Education and teaching 27 411 Healthcare and social sector 87 081 Other public and private services 43 793 Total 776 405 Source: Federal Employment Agency 6 Munich as a business location – Department of Labor and Economic Development Employment in Munich Employment is growing primarily in the service sector. Employment in 2010 2014 Increase selected growth Healthcare and social services 74 862 87 081 16.3% sectors Business services 155 430 189 870 22.2% Employees registered Corporate management and administration, 33 280 41 621 25.1% for social security management consultancy Architects, consulting engineers and laboratories 16 769 24 677 47.2% Legal and taxation consultancy, auditing 21 115 24 397 15.5% Information technology services 25 413 35 950 41.5% Total employment 694 459 776 405 11.8% Unemployment 2013 Germany 6.9% rates in Germany, Bavaria 3.8% Bavaria and Munich Munich 4.8% Annual averages 2014 Germany 6.7% Number of people Bavaria 3.8% out of work in 2014 Munich 4.8% Germany: 2 898 388 Bavaria: 264 603 Munich: 45 947 % % % % % 0 2 4 6 8 Unemployment Berlin 11.1% rates in German Cologne 9.6% cities in 2014 Hamburg 7.6% Annual averages Frankfurt / Main 7.3% Stuttgart 4.8% Munich 4.8% % % % % % 0 2 4 6 8 10% 12% Number of people Berlin Frankfurt/Main Hamburg Cologne Munich Stuttgart out of work in 202 928 26 810 76 663 53 054 45 947 24 819 German cities in 2014 Source: Federal Employment Agency Munich as a business location – Department of Labor and Economic Development 7 Sectors and clusters in Munich Munich’s balanced economic structure includes a strong focus on exports in the manufacturing industry. Value added in the 23.3% individual sectors 20.1 % € 17 425 million in 2012 € 15 007 million Manufacturing Public and private sector services, childcare and healthcare 35.8 % € 26 760 million Finance, insurance, business services, 20.8 % property and housing € 15 497 million Retail, catering, transportation, information and communication Source: Bavarian Office of Statistics and Data Processing Manufacturing 2012 2013 industry in Munich in € million Total turnover 43 810 45 374 Exports 31 348 33 610 Export rate 71.6% 74.1% Manufacture of IT, Other automotive Mechanical electronic and optical engineering, 2013 engineering, 2013 products, 2013 3 017 Total 3 173 Total 1 776 Total turnover turnover turnover 2 360 Exports 2 365 Exports 1 125 Exports 78.2% Export rate 74.5% Export rate 63.3% Export rate Source: Bavarian Office of Statistics and Data Processing 8 Munich as a business location – Department