Europe

Despite ongoing challenges related to trade relations with the EU and inflationary pressures, the UK is still an attractive destination for investment and innovation. The focus on digital transformation and green initiatives is expected to further bolster the economy, creating new opportunities for both domestic and international businesses. The UK contnues to show strong consumer spending along with increased investments in technology and infrastructure.

As not only a large and sophisticated market but one that is recognized for its ease of doing business, the UK is an attractive market for Wisconsin exporters despite the fact that it is highly competitive and price-sensitive. U.S. companies already have a strong position in the market due to longstanding relationships, close cultural links, a shared language, and strong trade links across multiple sectors; in addition, the UK’s departure from the EU continues to encourage UK companies to reevaluate their sourcing strategies.

Traditionally, Britain’s strong manufacturing base has attracted Wisconsin industrial machinery suppliers and advanced manufacturing companies, particularly those serving the aerospace, defense, and security sectors. But today, British demand is also seeking out Wisconsin companies in life sciences, water technology, and the service industries.

Many U.S. companies employ a regional approach when doing business in the three Benelux countries. The location and logistics infrastructure in the Netherlands and Belgium make them ideal locations for broader European distribution facilities. Luxembourg has long been a world center for banking, finance, and insurance. The Benelux countries all have favorable tax climates, well-educated and English-speaking workforces, and favorable Ease of Doing Business rankings from the World Bank. (Out of the 185 countries reviewed, the Netherlands ranks 42, Belgium ranks 46, and Luxembourg comes in at 72.)

While each of the Benelux countries has its own national and cultural identity, economic strengths, and distinct language, there are also very close ties among them, and many U.S. exporters employ a regional approach. Careful consideration should be given to market differences, but there are definite advantages in consolidating operations.

Both the Netherlands and Belgium are in the top 10 destinations for Wisconsin exports. Wisconsin companies active within the supply of the chemicals and high tech sectors are especially of interest for the Benelux markets, with nearly half of the goods imported in 2019 being attributable to these two sectors.

For Wisconsin exporters, Germany is home to both reliable customers and some of their toughest competition. With a population of 83 million, Germany is the largest consumer market in the EU. Economically, Germany is Europe’s powerhouse, by itself constituting 25% of the EU economy. This makes it the largest economy on the continent and the fourth-largest worldwide. For total trade, Germany is surpassed only by China and the U.S. In 2024, Germany is navigating a complex economic environment. The German economy is continuing its shift to digitization, renewable energy, and green technology. Although headlines may be mixed with uncertainty from energy and geopolitics, Germany continues to be a strong export partner.

As one of the world’s strongest economies and the largest national economy in Europe, Germany continues to be the main European trading partner of the U.S. Despite recent economic challenges, Germany’s economy has continued to demonstrate resilience in global trade. A high number of subject matter experts (many so-called “hidden champions” with status as world market leaders in their respective niche segments) shapes the German market, which is especially known for its high degree of innovation. The manufacturing industry represents 8.5% of Europe’s manufacturing companies and generates 25% of the EU’s manufacturing turnover. Innovative products account for an estimated 30% of German manufacturing sales. A focus on advanced manufacturing, green technology, and digitalization has helped sustain Germany’s competitive edge in the global market.

Thanks to a long history of German immigrant and a manufacturing and agricultural heritage rooted in trade with Germany as well as practices transferred by those immigrants, Wisconsin can claim status as one of the most German states in the U.S. The two economies have many parallels today, including placing value on quality, productivity, and innovation. Despite a recession affecting the broader European economy with inflation and slowing economic growth, export prospects remain strong for Wisconsin companies to increase their sales to German customers.

The Italian economy is the eighth-largest in the world and third-largest in the European Union, with a GDP of $2.1 trillion ($36,000 per capita) in 2024 according to trade.gov. Although it is the 18th-largest market for U.S. export goods, Wisconsin has seen continuous growth in exports to Italy. Many U.S. firms have opportunities and success in Italy, typically where technological, design, or price advantages exist. The Italian economy has many links to Wisconsin, particularly in manufacturing, agriculture, paper processing, and life sciences. Italian consumers are increasingly focused on quality and sustainability of products.

France is one of the largest countries in Europe and a leader among European nations with its highly educated population, first-rate universities, and skilled workforce. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales, but maintains a strong presence in some sectors, particularly the power, public transportation, and defense industries. In 2024, France is navigating post-pandemic recovery, with tourism returning as a vital component of its economy.

France is a large market—the sixth-largest economy in the world and the second-largest population in the European Union. France maintains the advantage of having the most borders with other European countries (Belgium, Germany, Luxembourg, Switzerland, Spain, and Monaco) and shares a common language with several of them, leading to a vast amount of cross-border trade. With an enviable logistics network, a sophisticated consumer base, and the second-strongest industrial base in Europe, France has long attracted U.S. exporters with innovative technologies and service offerings.

France imports nearly $500 million in Wisconsin goods every year. As the powerhouse for EU agriculture, France is a natural primary export target market for Wisconsin companies. But France also hosts world leaders that act on a global stage, from EDF (the world’s second-largest in electricity and nuclear power generation) to LVMH (a global leader in luxury goods). French businesses boast particular strength in aeronautics, defence, retail, consumer and luxury goods, building materials, and construction. Once trading with these French leaders in their domestic market, Wisconsin companies can often benefit from these companies’ global reach to enter new markets.