High demand, a need that cannot be met by domestic supply, and an excellent image of German craftsmanship are a good basis for orders in the neighboring country. (Photo: © Antony McAulay/123RF.com)
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Luxembourg is also worth a visit for German craft businesses. Before setting off for the Grand Duchy, there are a few things you should consider and apply for all the necessary documents in good time.
For German craft entrepreneurs venturing into foreign markets, the description of the Luxembourg market should be music to the ears. High demand potential, demand that cannot be met by domestic supply, a good economic situation, and an excellent image of German craft services are all key words used by the Trier Chamber of Crafts and Skilled Trades when describing this market.
"The Luxembourg market is interesting because the population is growing there, and there's a lot of construction going on. Compared to other countries, the economic situation is good," says Michèle Schneider. While Luxembourg isn't a land of unlimited opportunities for German craftspeople, the "Made in Germany" brand does have a certain significance, says the foreign trade advisor at the Trier Chamber of Commerce.
A high per capita income—the second-highest in the world—ensures full wallets in Luxembourg. That's why people are a bit more comfortable there than elsewhere: "People in Luxembourg are nowhere near as price-conscious as Germans," reveals Wolfgang Scholtes. He has long operated across borders and opened a branch in Luxembourg in 1994. "But Luxembourgers expect absolute top performance; if that doesn't happen, they can get uncomfortable," says the master tiler, slab installer, and mosaic maker.
According to Schneider, 45 percent of the companies in the Trier Chamber of Commerce district generate sales in the Grand Duchy. About half approach business across the border strategically, while the other half don't intend to do so at all and come to Luxembourg more by chance as subcontractors. Wolfgang Scholtes belongs to the first group. "We took a year to prepare; it was a long-term project."
However, businesses should take care of a few things beforehand. "Before a German tradesperson can operate in Luxembourg, they must provide written proof of their proper registration in Germany," explains Schneider (see info box). This must be sent to the Luxembourg Ministry of Small and Medium-Sized Enterprises. A confirmation of receipt should be returned within a few days. It is valid for twelve months and a copy should always be kept on hand in Luxembourg.
"In addition, businesses – including subcontractors – need a VAT number in most cases," the chamber consultant explained. After the application is submitted, the number arrives within ten to 14 days. Tradespeople can order the necessary forms by email or download them themselves. "They are now also available in German; filling them out is no problem." The standard VAT rate in Luxembourg is 17 percent. In certain cases of private residential construction, three percent applies.
While proof of employment and a tax number are relatively easy to apply for, dealing with the Posted Workers Act poses more problems for companies. Here, certain documents must be provided (see info box). The process for posting workers was switched to an online system, known as e-détachement, at the beginning of 2015. Posting companies must register on the platform www.itm.lu and upload the required documents there. The now-required "Social Badge" can also be printed out there. Finally, companies must report in advance when and where they will carry out an assignment in Luxembourg, with which employees.
The Trier Chamber of Skilled Crafts offers a guide to working in Luxembourg available for download at hwk-trier.de. There you will find all the important information and addresses in Luxembourg. Further information is available from the foreign trade advisory offices of the Chambers of Skilled Crafts. For Trier, this is: Michèle Schneider, Tel.: +49 651 207-107, Email: mschneider@hwk-trier.de
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The Chambers of Skilled Crafts in Germany - HWK of Saarland
The Interregional Council of the Chambers of Crafts and Skilled Trades Saar-Lor-Lux is committed to promoting harmonious craftsmanship in the Greater Region. One of its goals is to promote cross-border business activities.
"Our region is unique in Europe, and this creates economic opportunities that we must seize," explains Rudi Müller. To this end, the Trier Chamber of Skilled Crafts intends to work even more closely with the Luxembourg Chamber.
"Our goal must be to establish a harmonious craft sector in the Greater Region; this can only be achieved jointly," said the Chamber President, who is also president of the Interregional Council of the Chambers of Crafts Saar-Lor-Lux (IHR). This is precisely one of the IHR's functions.
It was founded in 1989. Its members currently include the five chambers of the federal states of Saarland and Rhineland-Palatinate, four French chambers, and the Grand Duchy of Luxembourg. The council represents approximately 165.000 craft businesses in the Greater Region.
Many German craft businesses are already operating in Luxembourg, but conversely, hardly any companies from the Grand Duchy are operating in Germany. However, economic relations should not become a one-way street: "It must be a give and take."
That's why the Trier Chamber of Commerce also offers free advice to Luxembourg companies wishing to operate in this country. In the interest of all member companies, the IHR is committed to ensuring that businesses in the other country have to overcome as few bureaucratic hurdles as possible. A uniform qualification framework is essential in this regard. "Professional qualifications must finally receive the recognition they deserve," Müller demands.
He also wishes for greater willingness to be mobile and, above all, greater promotion of bilingualism in the Greater Region. "For German entrepreneurs, the French language is already a barrier." To open up more sales opportunities for these companies, the Chamber of Crafts and Skilled Trades in Trier offers language courses. These courses teach not only everyday language but also the necessary technical terminology.
With better location conditions for small and medium-sized enterprises, skilled trades could continue to drive the economy. This would give businesses in the Greater Region the opportunity to continue to provide high-quality goods and services in the long term – and at a good price-performance ratio.
Eleven craftspeople from Saarland want to conquer new markets. To learn about the market conditions in Luxembourg, they explore the autumn trade fair for building, remodeling, and living. Saarbrücken in October, Saarland Chamber of Crafts, 10:30 a.m.: A bus is ready to transport a total of eleven craftspeople to Luxembourg. The program includes a business trip to gather information about the trade fair and market. The destination: the autumn trade fair. It is the largest trade event for building, remodeling, and living in the Greater Region, with 11,3 million inhabitants, and thus the showcase for skilled crafts in the Greater Saar-Lorraine-Luxembourg Region.
Over 450 exhibitors will be offering their products and services there, including 27 companies from Saarland, which will be presenting at the Saar Crafts and Trades Association's joint booth. The eleven participants on the excursion will also be able to determine whether participating in the joint booth next year is worthwhile for them.
One of them is Günter Bartruff. He is a master electrician and managing director of a trade business in Saarlouis. He wants to boost his business abroad and expand his reach. "I want to approach the market and am considering participating in the joint booth next year," he says. Although he has already completed a few projects in Luxembourg, he intends to approach his involvement more strategically and intensively in the future.
After a roughly 90-minute drive, the delegation arrives at the exhibition center and is personally greeted by Exhibition Director Jean-Michel Collignon. He hopes to welcome some of the eleven Saarland craft entrepreneurs as exhibitors next year. Following the welcome, Peter Juen, foreign trade advisor of the Saarland Chamber of Skilled Crafts, will provide a more detailed presentation of Luxembourg as a business location.
The state is a top-class business location. Decisive arguments for engaging German craftspeople in the foreign market are the population's high purchasing power and the state's strong financial power, the strong population growth, and the associated necessary infrastructure expansion. On the other hand, Luxembourg customers value the reliability, punctuality, and high-quality work of Saarland craftspeople. Furthermore, there are hardly any language barriers, as German is one of the three official languages in Luxembourg.
Juen then explains how the Chamber can support entrepreneurs in their foreign operations. In addition to market research trips, the program for developing new markets for the skilled trades includes special country guides, country consultation days, and even the organization of joint participation in trade fairs. "A 2009 survey showed that our exhibitors generated sales of €11,1 million in Luxembourg over the course of five years through their participation in the trade fair and were able to create 22 new jobs in Saarland," Juen says.
After a short guided tour of the trade fair, all participants can explore the area individually. Meanwhile, preparations are underway at the joint booth for the traditional "Saarland Crafts Day" at the autumn fair. Chamber General Manager Georg Brenner will open the event promptly at 17 p.m. Roland Krämer, State Secretary of the Saarland Ministry for the Environment and Consumer Protection, will also deliver a few welcoming remarks. Afterwards, there will be time for discussions among colleagues and networking. Around 19 p.m., the delegation will depart for Germany.
Günter Bartruff was impressed by his visit to the fall trade fair: "I'll be there next year, too. The Chamber's offerings are good. This way, I don't have to invest as much time in organization, and I can reach a completely different customer base at the trade fair." Peter Juen also draws a positive conclusion. According to the foreign trade consultant, many of the other participants also plan to exhibit at the fall trade fair next year.
Lothar Kuntz aims to conquer the Luxembourg market with Japanese furnishings. He first encountered Japanese culture more than 25 years ago. This has developed into a special passion, which he also pursues in his profession. Kuntz is a master carpenter with a business in Trier. There, he produces, among other things, shoji – classic Japanese sliding doors.
You can imagine such doors in a simplified way like this: A shoji element consists of a wooden frame with an interior slatted frame. The entire frame is covered with translucent paper – the shoji door is complete.
It sounds simple, but it's a science in itself. "Each shoji element is unique," explains Kuntz. "I was immediately impressed by the possible uses." Shoji can be used, for example, as room dividers, cabinet fronts, suspended ceilings, or wall paneling. The customer can freely choose the dimensions, slat layout, and paper. And because that sounds easier than it is, Kuntz has been to Japan several times; there he was able to learn from masters of their craft in traditional workshops and perfect his craft.
The carpenter has been producing shojis on the side since 1985, until 2008, when he decided to market his products more aggressively. "I think it's a trend." He's also focusing on Luxembourg. He's been performing "normal" carpentry work there for a long time. "If you have a craft business in Trier, opportunities in the Luxembourg market almost automatically arise." And Kuntz has seized them. He generates up to 80 percent of his sales in the foreign and national market; logistically, this is no problem at all in Trier. And since Luxembourg is "just around the corner" for him, he also handles small orders there.
In general, the bureaucratic effort a tradesperson has to go through to operate across the border has become increasingly less complicated. "The authorities are trying to make the formalities simpler than before," says Kuntz. Language barriers are somewhat more difficult to overcome: "If you don't speak French in some parts of Luxembourg, it can be difficult."
In return, there is a wealthy clientele in Luxembourg. "There's more money in Luxembourg than here, and the entire society is multinational and cosmopolitan." However, one must constantly maintain a presence and cultivate customer relationships. The autumn fair in the Grand Duchy is an important tool for this. Kuntz also regularly exhibits there, also to increase the marketing of his shoji products. "The fair is very important. It's not enough to just be there once." The exotic furnishings were consistently well received, and not just during the fair. "I'm sure this will catch on."
And so, perhaps a piece of Japanese culture will soon find its way into Luxembourg homes. For Kuntz himself, the topic of Japan has become much more than just a facet of his job: "I find engaging with this foreign culture simply fascinating, and it has now become a part of my life."
The Luxembourg Autumn Fair is the largest trade event for construction, renovation, and living in the greater Saar-Lorraine region. It brings together up to 500 exhibitors and 60.000 visitors each year. In 2010, the Trier region's skilled trades presented themselves for the 25th time in the form of a joint booth at the Luxembourg Autumn Fair. 60 companies from the region presented their products there. Text: Lars Otten; Photos: © PaylessImages/123RF.com; YOUICHIRO SHIMA/123RF.com
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