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How Does a European Manufacturer Hire Its First US Leadership Team?

  • Writer: Philip Lamb
    Philip Lamb
  • 2 days ago
  • 3 min read

PRL International | prlinternational.com
PRL International | prlinternational.com

"Be courteous to all, but intimate with few, and let those few be well tried before you give them your confidence." -- George Washington

The US manufacturing expansion by European companies is accelerating. The U.S. Department of Commerce SelectUSA program reports that European foreign direct investment in American manufacturing represents the largest single source of inbound FDI in the country, with German, Austrian, and Italian manufacturers driving the majority of new greenfield operations. The Pittsburgh and Western Pennsylvania corridor, with its infrastructure, energy access, and proximity to the Midwest supply chain, has attracted a steady stream of these operations over the past decade.

Every one of those companies had to hire a US leadership team. Most of them made the same mistakes in the first search.

PRL International is a retained executive search firm serving Pittsburgh and Western Pennsylvania, specializing in senior-level placements for international companies building US operations in energy, manufacturing, and industrial sectors. The first US leadership search is the most consequential hiring decision a foreign manufacturer makes. It sets the culture, the pace, and the trajectory of everything that follows.

What Makes Hiring a First US Leadership Team Different From Every Other Executive Search?

Hiring a first US leadership team is different from every other executive search because the company has no US reputation, no US reference points, and no existing team to validate the hire.

In a standard retained search, candidates can speak to colleagues who have worked at the company. They can look at the leadership team, assess the culture, and make an informed judgment about whether this is an organization they want to join. A European manufacturer entering the US market has none of that. The company is unknown. The brand that carries weight in Stuttgart or Milan means nothing to a VP of Operations candidate in Pittsburgh.

The search firm carrying that assignment has to do something the client cannot do alone: translate the company's European identity into a story that resonates with American executive candidates. That translation is not just language. It is context. Why is this company entering the US now? What is the investment commitment? Who will the US leadership team report to? What authority will they actually have versus what will still flow through European headquarters?

Candidates ask these questions. The answers either build confidence or they do not.

What Does the Right First US Hire Look Like for a European Manufacturer?

The right first US hire for a European manufacturer is a general manager or VP of Operations who has worked in a cross-cultural reporting structure and succeeded.

This is the most overlooked filter in the search. A strong operational executive who has spent 20 years inside American companies may be an exceptional hire on paper and a poor fit in practice. The weekly reporting cadence to a German or Austrian parent company, the need to bridge cultural expectations around communication and decision-making speed, and the reality of being the sole senior leader in a company that does not yet have a US peer group -- these are conditions that require a specific kind of executive.

The candidates worth pursuing have done this before. They have built a US operation for a foreign parent, managed the cultural friction that inevitably comes with it, and delivered results. They are not common. They are not on job boards. They come from retained search networks built over decades.

Why Do European Manufacturers Keep Getting the First US Search Wrong?

European manufacturers keep getting the first US search wrong because they treat it like a domestic search with a different zip code.

The evaluation criteria they use at home -- technical expertise, industry pedigree, credentials -- are necessary but not sufficient in the US market. American executive candidates evaluate opportunity differently. They assess the quality of the leadership above them, the clarity of the authority they will have, and whether the company is committed enough to the US market to give the leadership team room to operate.

The manufacturers that get this search right spend as much time preparing the company to be evaluated as they do evaluating candidates.

For more on how international companies approach executive search in the United States, read International Executive Search at PRL International and What Foreign Companies Get Wrong When Hiring Their First US Executive Team.

If you are ready to fill a senior role or want to talk through your search, reach out at prlinternational.com/contact

Want to know what questions to ask before hiring a search firm? Download the free 7-Question Guide: https://prl-proposal.vercel.app/guide

 
 
 

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