Erfurt as a Commercial Centre

The political, cultural and social changes following the unification of the two Germanies on the 3rd of October 1990 formed the background to a substantial change in Erfurt’s economic structures. The relative extent of trade, services industries and administration showed a remarkable increase while the producing industries declined in comparison. However, one aspect was saved, and that was Erfurt’s commercial and industrial diversity. Today this attractive capital city is a vital centre that once more can offer a varied and lively cultural scene. This is already sufficient reason to be interested in Erfurt as a business location, particularly because it has one of the largest remaining historical city centres in the whole of Germany. This old part of the city was restored to its former ‘glory’ as the result of large-scale and expensive reconstruction and renovation. Erfurt’s distinctive charm is not solely based on its medieval city centre, but also on its many parks and extensive green areas designed for leisure. The following environmental statistics illustrate this aspect of Erfurt: 550 hectares of green belt, almost 2,000 hectares of forest, 379 hectares of water surface area and 156 kilometres of river. Shopping can also be fun in Erfurt as the various department stores within the city centre are supplemented by a variety of small to medium-sized shops, many of which are located in narrow streets and alleys within the historical part of the city.

Economic metropolis in Thuringia

It is the aim of the economic policy of Erfurt to establish a healthy mix of small to medium sized-businesses, craft and trade outlets as well as supporting the service and administrative sectors. In order to achieve this aim, new commercial areas have been developed and old ones have been revitalised. Erfurt has always been an important centre of business, and it has developed into one of the most interesting economic locations in Eastern Germany because of its many advantages.

The industrial landscape is mainly characterised by small to medium-sized companies as well as the various ventures specialising in craftwork. These are the businesses on which the wide variety of economic life in the city is really based.

The main economic areas are as follows:

• electrical engineering/electronics/microelectronics
  with companies such as Melexis GmbH, X-FAB Semiconductor Foundries AG,
• mechanical engineering
  with companies such as Müller Weingarten AG,Niederlassung Umformtechnik Erfurt , Siemens AG Generatorenwerk,
• food industry
  with companies such as Milchwerke Thüringen GmbH, Braugold Vertriebs GmbH u. Co KG, Erfurter Teigwaren GmbH,
• building industry
  with companies such as Bilfinger & Berger AG, Riedl Bauunternehmen GmbH & Co. KG, HOCHTIEF AG,
• horticulture and seed cultivation
  with companies such as NL Chrestensen Erfurter Samen- und Pflanzenzucht GmbH and Rose Saatzucht representing this traditional field of Erfurt’s economy.

Special mention should be made concerning recent developments in electronics, microelectronics and software. This industry has maintained its primary position, which it had already enjoyed before the fall of the Wall. However, both the aims and general industrial circumstances have undergone a total change since that time.

On account of their innovations, pioneering medium-sized companies are contributing to turning Erfurt into a high-tech centre with a definite future. The main locations are based in Erfurt’s South-East commercial estate accommodating key enterprises such as The sys, X-FAB and the Erfurt Technology Centre. More than 150 companies together with their total workforce of around 2000 are concentrated at this location.

Over the next few years, present industrial research is due to expand. The re-opened university and the University of Applied Science offer the best conditions for training students in a great variety of fields.

Service industries

Before 1990, approx. 60 % of all employees worked in production and about 40 % in the service sector. Today, the entire service sector comprises approx. 70 % of all employees whereas production only accounts for about 30 %. Thus, the structural change enabling Erfurt to become the service centre of Thuringia has now been more or less completed.

Apart from traditional service companies, transhipment and logistics companies have been newly established. GVZ (Freight Transport Centre) Erfurt has become the most important location in Thuringia – and, in addition; there are several call-centres.

Number of companies in the city

Erfurt just has everything

Erfurt, the capital city , is an important centre of administration and services industries, a traffic centre and tourist attraction, one of the business centres and most important trade fair location and an important place of higher education in the state of Thuringia. The most important stronghold in the producing industries are traditional industrial fields like electrotechnical engineering and electronics, mechanical engineering, printing industries, construction firms, food processing and other consumer goods industries. This is complemented by economically healthy multifaceted crafts and trades enterprises as well as by horticulture, seed cultivation and agriculture. A vast number of newly developed technology oriented and highly innovative enterprises are the basis of a further development towards becoming a centre of high technology. Among the completely developed newly created "Gewerbegebieten" (areas for businesses) the "Güterverkehrszentrum" (GVZ) (Freight Transport Centre) deserves to be specially mentioned. On the eastern outskirts of the city one of the largest "Güterverkehrszentren"   in Germany is growing. It combines state of the art logistics with an highly modern train terminal for a combined cargo traffic with the advantage of having production, transport and services united under one roof. Erfurts very central location within Germany and Europe, the ongoing further development of traffic connections via street, motorway, railway and airport offers the very best locational conditions for enterprises willing to establish themselves in Erfurt.

One point of special emphasis of the politics of supporting economic growth at state and municipal levels will be the further development of industrial research projects. The university, the Pädagogische Hochschule (college of educational sciences) and the Fachhochschule (college of applied sciences) are providing excellent conditions and facilities for this endeavor.

Frankly, Erfurt as a regional centre is in an excellent logistical location. With its young population and well qualified workforce it simply has everything:

competitive offers of developed sites for industry and trade and real estate
the complete infrastructure of a modern city of industry, services, trade, university, education and trade fairs
extensive opportunities in the areas of education, culture, sports, leisure and housing.