Manufacturing an Unlikely Saviour of World Economy

Germany is a world-renowned business and manufacturing location. From the historically famous automobile industry, through chemicals and engineering, to digital innovations and Industries 4.0, Germany has consistently been at the forefront of industrial leadership.

Now celebrated as a global place of innovation and a pioneer of the new Industries 4.0 concept, Germany is continuing to evolve into the digital age and embrace new industries, such as environmental technology, additive manufacturing and the digital economy. With a world-class infrastructure, a skilled and flexible labour force and a national strategy geared to wards innovation, Germany is a place for all-comers to invest in.

Germany’s manufacturing sector contributes much more to GDP than that of most of its European peers, its output constituting roughly 24% of gross value added. As globalization gained momentum in recent decades, this has been the key factor behind Germany’s export strength and the driving force for GDP growth. Since 2008, however, a series of crises has led to cyclical and, more recently, also structural setbacks - the GFC of 2008-09, the subsequent eurozone debt crisis, the various problems besetting Germany’s key automotive industry since 2015 (diesel emission scandal, city ban debate linked to NO2 emissions, structural shift away from combustion engines to electric mobility), the UK’s Brexit decision in 2016, increasing global trade protectionism fuelled by the Trump administration in the US, and finally somewhat diminished impetus from Chinese growth due to a government shifting policy focus from investment to consumption.

Siliconindia is brining the special edition focused on Manufacturing sector in Germany.
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