germany industry energy german largest consumer industries

techsuch May 9, 2021 0 Comments

What Are The Biggest Industries In Germany?Germany has a developed social market economy, the largest in Europe andfourth and fifth largest globally by nominal GDP and GDP PPP (Purchasing PowerParity) respectively. Most of the world knows Germany because of itsmanufacturing sector which produces some of the best quality products. In2016, the country became the third largest global exporter of goods andservices. German economy remains relatively stable that economists believethat the country is less likely to be affected by financial crisis. Germanyhosts 53 of the largest 2000 publicly listed companies by revenue globally.This country also leads in the number of trade fairs, it is the home to morethan half of global trade fairs.## Machinery, Automotive, And Aviation IndustryThe machinery and equipment sector drives the high-tech nation and leads ininnovations like robotics. Germany has a proven engineering tradition andcontinues to offer modern manufacturing solutions. This sector has more than6,419 employees with an ever-growing workforce that generated almost $267billion in 2015. Germans lead in the European automotive industry in bothproduction and sales. Globally, many people recognize the innovative andprecise nature of German car manufacturers and suppliers. Worldwide, peopleappreciate German products like Bayerische Motorenwerke (BMW), Daimler-Benz,and Volkswagen for excellent engineering, innovation, safety, and designs. Thecountry has developed quality research and invested in qualified workforce andinfrastructure responsible for a peerless automotive industry for the last 125years.The aviation sector in Germany has been on a constant rise, especially overthe last two decades. In 2016, the aviation industry revenue stood at $43billion. Germany hosts leading civil and defence aviation manufactures withprojections of producing approximately 35,000 new aircrafts within the nexttwenty years. Germany’s competitive advantage over giants like the US andCanada is its combination of cost efficiency, available talent, and a powerfulmanufacturing base.## Chemical And Medical IndustryThe German chemical industry leads in Europe in terms of sales within Europeand exports to other continents. Germany has well-developed chemical researchand development infrastructure. The country’s education system also producesquality graduates ready to work and offers investors a fertile and marketready environment for chemical products. In 2016, Germany recorded the thirdlargest sale ($168 billion) in chemical products, behind China and the US. Ofthe total sale, the country exported 60% of the products to other Europeancountries, 17% to Asia, 7% within the (North American Free Trade Agreement)NAFTA infrastructure, 3% to Latin America and 3% to the rest of the World.This result was after spending $3.83 billion in research and development. Thesame year, the chemical industry employed more than 331,000 people. Medicalequipment and pharmaceutical goods are among the top German exports and givethe country billions of dollars. The commodities include medical supplies,life-saving machinery, and other hospital equipment.## Consumer And Service IndustriesGermany’s consumer spending is stable because of low levels of private debtand unemployment. The country is Europe’s largest consumer goods producer andmarket in terms of population and purchasing power. Located centrally in thecontinent and with good infrastructure, Germany has the vantage position toaccess western and eastern European consumer markets. Germans prefer value andestablished brands, most of which the diverse consumer industries provide.Most consumer industries embraced E-commerce, innovation, and also offer theiremployees flexible working hours. The leading consumer industries include foodand beverage, textiles, garments, shoes, office supplies, computers,telecommunication equipment, furniture, tourism, Do It Yourself (DIY), andhome improvements.Textiles, garments, and shoes constitute the second largest consumer industry(generating about $50 billion in turnover, this is mostly Mittelstandcompanies) after food and beverage. Germany ranks fourth globally in theexport of clothes and textile products. The DIY and home improvement marketgenerated approximately $46.4 billion in 2014, which is 9% of the cumulativeconsumer good market. The German food and beverage industry is receptive tonew cultural influences and international food and beverage players. Giantfood and beverage players like Amazon Fresh and Tadim have a huge presence inthe country. Other large players include Nestlé, Cargill, MondelēzDeutschland, Südzucker, Arla, and Dr. Oetker Group among other thousands offranchises. Being Europe’s largest food producer, German food and agriculturalcommodity export in 2016 generated $65.8 billion.Whether on job or vacation, Germans embrace domestic tourism. German vacationsites also attract more foreigners each year who go to enjoy the culturalsites, international events, and sporting activities among others. 2016figures show that Germans spent $167 billion on culture and entertainment. Thesame year, German hotels recorded $518 million on accommodation from nationaland international tourists. The total tourism revenue was 39.2 billion. Ingeneral, German consumer industry rides high with the fact that Germanproducts are of high quality, therefore, all these products have high globaldemand. The continued growth of the consumer industry is because of flexibleretailers who have both online and offline systems and tech-savvy customerswho offer timely feedback and review. Retailers also have ROPO Effect(Research Online and Purchase Offline) effect which many Germans love.## Energy And Environmental Technology IndustryGermany leads in the production of green energy and environmentaltechnologies. In addition, traditional energy is steadily transiting torenewable energy. By the year 2050, Germany aims at reducing greenhouse gasemissions by 80% and increase use of renewable energy by 60%. The country alsohas investments in offshore wind energy, solar panels, bioenergy,photovoltaics, energy grids, and energy storage projects. Currently, Germanyhas the largest electricity generation capacity in Europe, about 200 GW.German’s centralized location in Europe makes it an ideal onshore and offshorewind energy harvesting, therefore, leading to major opportunities for windenergy companies from around the globe. The total wind energy capacity in 2016was 45 GW. Solar energy also plays a big role in providing sustainable energy.Germany’s solar energy supports electricity production and heating. Thecountry provides incentives, infrastructure, and good environment forphotovoltaic investments and energy storage. In 2014, Germany invested 2.3billion Euros on new photovoltaic installations. Another energy sector thatGermany invests in heavily is electric vehicles and their charginginfrastructure.## Electronics And ICT IndustryGermany has the fifth largest electrical and electronic industries in theworld with an annual market value of approximately $142.7 billion. Thisindustry has wide-ranging products like home appliances, nanotechnologyequipment, commercial lighting, automation systems, and luminaries among otherproducts. This industry employs 29% of all Research and Development employeesin Germany and accounts for over 12,000 new patents annually. On ICT, thecountry enjoys the largest market of its kind in Europe. Most ICT firms andstartups are products of Mittelstands. Increased automation in all thecountry’s industries and activities led to the demand for software solution.Young people, especially graduates, continue to spearhead the ICT sector byoffering solutions that not only save industries money but also offergovernment solutions for service delivery. ICT also rides on the back ofsmall, medium, and big companies that need smart data services and products,security technology, and automated human resource management among others.## Mittelstand IndustriesAlthough people know Germany for its big firms like BMW and Bayer, theMittelstand industries are the real backbones of the German economy. In fact,financial loss at most big firms would not result in a big economic crisis inthe country. As a key driver to the economy, 99% of German companies areMittelstand small and medium-sized companies. In Germany, Mittelstandcompanies are family owned companies with emotional attachments, they displaygenerational continuity, are independent, are nimble, flexible, have leanhierarchies, long-term focus, customer oriented, innovative, sociallyresponsible, invests on the workforce, and have strong regional ties.Mittelstand companies employ less than 500 workers each and in total, theyemploy 80% of the country’s workforce and exports a significant number ofproducts.

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