Pura Vida for the Mittelstand: Why now is the right moment for Costa Rica and Central America

I studied in Costa Rica, in the dual CALA programme. I worked at Bayer during the day and studied in the evening. Afterwards I stayed on, in total around five years in HR for Bayer in Central America and the Caribbean.

During that time we reorganised HR across the region based on Dave Ulrich's model, with HR business partners, centres of expertise and shared services. I was responsible for recruiting in the region, built the regional Development Center and supported the plant in El Salvador as HR business partner.

What I learned back then still guides me today: in Central America you find excellently trained, loyal and incredibly motivated people. You just need to know how to find them and how to lead them.

Later I supported BMW's plant build-up in Brazil and Mexico on the people side, with around 6,000 hires. Today, with People Places Performance, I help companies with exactly that: building new sites, from the first employee to a well-functioning team.

The message of the day was clear: Central America is an underrated growth market right on the doorstep of the USA. These arguments stayed with me:

A market of more than 60 million people. Together, the SICA countries have more inhabitants than Italy or Spain.

Free trade with Europe. The countries of the region have trade and association agreements with the EU. Many also have agreements with the USA. That makes the region a springboard into North America.

Green energy. Parts of the region generate well over 90 percent of their energy from renewables. Germany still has some way to go.

Germany has an excellent reputation. German products, engineers, doctors and the dual vocational training system are highly respected there. The German Chambers of Commerce Abroad (AHK) have often driven dual training locally.

There is backing. Hermes export credit guarantees, investment protection and the EU's Global Gateway initiative, with a German contact point at GTAI.

Two sentences I wrote down in particular. Ingo Kramer said: "What we need a little more of in Germany is a spirit of adventure." And Anja Maus from the Federal Ministry for Economic Affairs and Energy advised: "Don't go there alone, find a partner, use the network of the chambers."

What convinced me most were not the figures, but the companies that simply told us how it works for them.

Kaeser Kompressoren from Coburg. Kaeser has been in the region for more than 20 years and is now active in all SICA countries, from Belize to Panama, and now also in the Dominican Republic. Thomas Kaeser spoke of almost 40 million US dollars in revenue and of excellently trained, highly motivated employees.

PWM. CEO Dr. Max F. Krawinkel explained that PWM has had an office in Costa Rica for ten years. Guatemala is now its largest market, and El Salvador was the biggest positive surprise. His practical tips: patience, a local employee, the language, a local warehouse and service in Spanish.

B.T. Innovation. For CEO Felix von Limburg, market entry runs through distributors and the network of the German Chamber of Commerce Abroad. A good way to get to know the market before investing yourself.

Medical technology in the Dominican Republic. Ingo Kramer told of a German medical technology company with more than 3,000 employees there. Thanks to the Dominican Republic's free trade agreement with the USA, it was able to supply the North American market from there without problems for a long time.

Costa Rica itself now focuses strongly on shared services, IT services and artificial intelligence. That has developed enormously since my time there.

When I went to Central America back then, many people asked me: "Isn't that dangerous?" To be honest, the region used to be less safe in many places, and you had to be careful.

Today I experience something that surprises even me. When I look at what is happening in Germany and in Europe right now, I sometimes feel almost safer in Costa Rica than here. That is my very personal impression, not a statistic. But it says a lot about how the world has shifted.

I feel the same about the economic mood. Here I read every week about job cuts, short-time work and plant closures. There I meet countries that are growing, investing and have young, ambitious talent. As someone put it on stage: these countries are growing strongly. El Salvador was described as a country that has changed in recent years like hardly any other.

Of course Central America has its challenges too, and every country is different. Anyone investing there should do their homework. But the old picture in our heads is simply no longer accurate.

1. Go there, don't just read about it. Fly over and visit companies on site. A delegation trip with the AHK is a good first step.

2. Don't go alone. Use the chambers of commerce, partners and networks. A great deal in the region happens through personal relationships.

3. Choose your first local person carefully. The first manager on site decides between success and failure. They need the language, a network and the trust of headquarters.

4. Plan for patience. Building up takes time. Those who come with patience, a warehouse and service in Spanish will be rewarded.

5. Use the instruments. Hermes guarantees, investment protection and Global Gateway exist for exactly this purpose.

I have lived and studied in Central America and helped build the HR function of an entire region. Today, with People Places Performance, I support companies in setting up new sites: from workforce planning and the search for the first key people to a well-functioning team.

If you are thinking about Costa Rica or Central America, write to me. A first 20-minute conversation costs nothing and often saves months: info@sandralochmann.com