Most added value to be generated

At the moment, the Netherlands focuses on the region of North Rhine-Westphalia, which accounts for no less than 45% of
Dutch exports to Germany. The greatest opportunities for Dutch industrial suppliers lie in providing goods and services to the
specialist mechanical engineering and electrical engineering companies. In these sectors, Dutch high-tech suppliers could
deliver permanent added value, something that will be more difficult, although not impossible, in the automotive chain (where
margins are traditionally very tight).

The southern regions of Baden-Württemberg and Bavaria are dominant in the electrical and
mechanical engineering sectors. Since distance is still an important factor in doing business, Hessen and North Rhine-Westphalia
(which actually has a larger mechanical engineering sector than Bavaria) will continue to attract Dutch companies looking for
opportunities for growth, especially smaller suppliers.