· GDP ( Million $ ) - 4.031.149
· GDP Per Capita ( $ ) - 48.398
· Growth Rate ( % ) - 1,6
· Population - 85,887,000
· Total Area - 357,592
· Capital – Berlin
· Monetary Unit - euro (€)
Germany is one of the largest countries in Europe with an area of 357 thousand km² and a population approaching 83 million, In terms of population, the country ranks second among European countries after the Russian Federation, and ranks first among EU countries. Germany is a federal republic consisting of 16 states. The country is one of the key actors in the world economy and politics with its leadership position within the EU and its strong economic, industrial, commercial and technological structure.
Germany is geographically located in Central Europe, between the North Sea and the Alps. Neighboring countries are Austria, Czech Republic, Netherlands, France, Poland, Switzerland, Belgium, Luxembourg and Denmark.
The Federal Republic of Germany, which is the largest partner in Turkey's exports and imports with its high purchasing power, is the most developed industrial country in the world after the USA and Japan. With a population of over 83 million, the country is also the largest and most important market in the European Union.
The backbone of Germany, which is strategically located in one of the most important production and trade regions in the world, is the manufacturing industry and related service sectors. While the most important manufacturing sectors are industrial machinery, automotive and chemical industry, we see that service sectors have come to the fore here as in other developed countries in recent years. In particular, sectors such as telecommunications, software and informatics, food and construction stand out in this sense.
Germany, which was in the first place in world exports from 2003 to 2009, has been in the first three places with China and the USA in the world export and import ranking since 2020, and in the second place after China in terms of foreign trade balance. Germany, which focuses especially on high value-added products, is less affected by the competition arising from countries that follow low wage policies, compared to other European countries such as Italy and Spain.
Capital goods account for more than half of Germany's exports. Transportation vehicles and their parts and pharmaceuticals have the largest share in exports. Important goods groups in import are machinery, transportation vehicles and their parts, petroleum-natural gas and its products, and pharmaceuticals.
INDUSTRY
Although the share of the service sector in the GDP in Germany is on an increasing trend as in other developed countries, the industry still constitutes the driving force of the economy. It is due to the fact that the country has traditionally adopted a development model based on heavy industry and that the service sectors are somehow connected with the manufacturing sectors and take their strength from the manufacturing side.
When we look at the GDP distribution of the country, services are 69.8%; 23.5% of the manufacturing industry; It is seen that the construction industry constitutes 5.9% and agriculture, forestry and livestock products constitute 0.9%.
In the German GDP (2019), the contribution of the manufacturing industry to the economy was approximately 737.94 billion euros. Compared to 2020, Germany has increased by 3% in terms of production last year. According to the latest data of 2022 (Federal Statistical Institute), the industrial sector contributed 758.2 billion euros to the German economy. The contribution of the construction sector was realized as 191.9 billion Euros. According to the latest data announced, it is observed that the manufacturing and construction sectors continue to grow. Despite the general decline in other sectors, in the last quarter of 2021, manufacturing produced 1.9% and construction 1.6% gross added value.
Although almost all industrial goods are produced in Germany, which is Europe's first and the world's fourth largest economy, the country's industrial power mainly consists of vehicles, capital goods, chemicals and white goods sectors. On the other hand, in Germany, where the aviation and computer hardware industry is relatively less developed, the manufacture and export of high-tech products has a smaller share in the country's industrial output compared to some other industrialized countries such as the USA and Japan.
More than half of the total industrial production consists of manufacturing sectors, 12% of this rate is machinery and equipment, 12% is motor tools and equipment, 10% is metal and metal products, 10% is electrical and electronic products, 11% is construction. products and 10% consists of energy products manufacturing. Of the global industrial output of about 41 trillion euros, 2 trillion euros is produced by Germany.
AUTOMOTIVE
The automotive sector is the backbone industry in Germany, and the German automotive industry is a global leader. Germany is also one of the strongest countries in the world when it comes to high-tech automotive products, including autonomous driving technology.
Germany is recognized the world over for its outstanding automotive industry and excellence in engineering. From Asia to the Americas, German cars embody highly cherished values of innovation, reliability, safety, and design. Germany is by some distance Europe’s leading production and sales market. The country’s world-class R&D infrastructure, complete industry value chain integration, and highly qualified workforce create an internationally peerless automotive environment. It enables companies to develop cutting- edge technologies, which perfectly address tomorrow’s mobility needs.
Germany’s auto sector is bouncing back from the Covid19 pandemic thanks to a broad array of forward-looking instruments and measures that will transform both the industry and future mobility. Significant investment in autonomous driving and battery research and development, massive expansion of charging infrastructure and electric vehicle cash incentives are driving prospects in the resurgent industry.
Germany is Europe’s biggest automotive market; number one in production and sales terms, accounting for around 25 percent of all passenger cars manufactured and almost 20 percent of all new registrations. Germany also boasts the largest concentration of OEM plants in Europe. There are currently 44 OEM sites located in Germany. German OEM market share in the EU was more than 55 percent in 2021.
German automobile manufacturers produced over 15.6 million vehicles in 2021. Fifteen of the world’s 75 top automotive suppliers are German companies. Germany is the European car production leader: more than 3.1 million passenger cars – and 351,000 commercial vehicles – were manufactured in German plants in 2021.
The country’s passenger car and light commercial vehicle OEM generated foreign market revenue of almost EUR 274 billion in 2021 – a ten percent increase over 2020. Automotive exports account for more than 13 percent of all German exports in 2021 – the product group with the largest export share. Domestic market revenue is EUR 136.9 billion, compared to 2021.
German OEMs were responsible for internal R&D investments amounting to almost EUR 28.3 billion in 2021. Germany’s automotive sector is the country’s most innovative industry sector, accounting for 34.1 percent of total German industry R&D expenditure of around EUR 71 billion in 2020. Research and development personnel within the German automobile industry reached a level of around 134,000. Manufacturers and suppliers of the German automotive industry will invest more than EUR 220 billion in electric mobility and digitalization for the period 2022 to 2026.
Germany’s automotive industry occupies pole position in international innovation rankings according to the German Association of the Automotive Industry (VDA). Volkswagen, BMW and Daimler occupy the top three slots with suppliers including Bosch, Schaffler, and ZF also coming out top internationally. The industry plans to invest EUR 150 billion in digitalization, electric mobility and drive systems, hydrogen technology and transport safety in the coming years.
Automotive engineers in Germany are hard at work improving internal combustion engine energy efficiency, developing alternative drive technologies (including electric, hybrid, and fuel cell cars), and adapting lightweight materials and electronics.
Carbon-emission reduction targets, smart traffic management, and the government’s electric mobility initiative are major drivers for future mobility growth. Impressive developments have been made in developing smaller, highly chargedup “homogeneous combustion” engines and dual clutch transmissions (DCTs). Optimized combustion engines that make use of synthetic fuels will provide a short-term solution for some manufacturers before the introduction of the European Union mandate that all new vehicles be emissions free by 2035.
ELECTRONICS & MICROTECHNOLOGY
Germany is recognized the world over as an innovative microelectronics production and research location. The electronics industry in Germany is also Europe’s leading production and sales market.
Germany boasts an unparalleled density of renowned R&D institutes and world-leading manufacturers and suppliers for electrical and electronic materials, components, and equipment across the value chain. These range from microelectronic components to electrical household appliances, automation systems, electronic medical equipment, and automotive electronics. Investment opportunities are many and varied.
The Internet of Things (IoT) is one of the most promising innovation accelerators for digital enterprises. Areas of application cover everything from manufacturing and construction to retail as well as transportation – in fact almost all sectors that utilize online devices or sensors. Internet of Things applications are of significant strategic importance for microelectronic manufacturers. Within Germany, IoT spending will exceed EUR 35 billion (making Germany the biggest spender in Europe) and IoT-generated turnover is expected to double from EUR 22.5 billion in 2018 to a forecast level of EUR 45 billion in 2023.
Advances in automotive electronics are creating new market opportunities with the advent of the "connected car" and autonomous vehicles.
The Internet of Things also gives rise to the age of the “connected car” and, ultimately, autonomous vehicles. The automobile sector is driving increased chip demand, with increased digitalization and electrification creating above-average semiconductor growth. Automotive electronics account for around 80 to 90 percent of innovations in modern vehicles and is the semiconductor sector’s main industry sector client.
Germany counts among the highest growth rate forecasts for the use of microelectronics in vehicles in Europe, leading the way out of the coronavirus pandemic and forward to a new mobility era.
Growth forecasts for automotive electronics are significantly higher in Germany and China compared to other traditional automotive locations. It is predicted that the use of automotive electronics for vehicles in Germany will grow by 5.6 percent per year, reaching USD 9.6 billion value in 2021. Automotive electronics accounts for around 80 to 90 percent of innovations in modern vehicles.
AEROSPACE
When we look at the data for the years 2015-2021 regarding the foreign trade of aerospace vehicles and spare parts in Germany, it is seen that there is a foreign trade surplus in the sector. However, it is seen that the contraction in the aviation sector due to the reduction in the number of orders, postponements and even cancellations due to the travel bans implemented after the corona pandemic continues in 2021, although it is less than in 2020.
While the trade volume in the sector was 60 billion dollars in 2019, this amount decreased to 42 billion dollars in 2020 and 39 billion dollars in 2021. 27.3 billion dollars of the said trade volume is Germany's exports, 11.7 billion dollars is Germany's imports. The sector creates employment for 105,000 people, 71% of its turnover comes from civil aviation, 22% from military aviation and 7% from space studies. In the civil aviation sector, one of the sectors most affected by the Covid pandemic, 8,200 people lost their jobs in 2020, and although the layoffs can be kept within limits thanks to the short-time working allowance, the contraction in employment is expected to continue in 2021 and 2022.
When the exports of Germany in the aerospace sector are examined, it is seen that the highest export was made to the People's Republic of China with 4.6 billion dollars in 2021, while France (3.9 billion dollars) and India (2.2 billion dollars) were the most exported countries. second and third countries. The export amount of Germany to Turkey is 678 million dollars, and Turkey is the tenth country in the aforementioned ranking. When the imports of Germany in the aerospace sector are analyzed, it is seen that the most imports are from the USA with 3.3 billion dollars in 2021, the second and third of the UK (2.8 billion dollars) and France (2.2 billion dollars) imports. They appear to be in line. Germany's import from Turkey in this sector is 202.5 million dollars, and Turkey is the eighth country in the aforementioned ranking.
The aviation and space sector in Germany is not only concentrated in certain regions throughout the country, but also shows a widespread distribution throughout the country. The major centers of the industry are Hamburg, Bremen, Hannover in Northern Germany, Munich, Stuttgart in Southern Germany, Berlin and Dresden in Central and East Germany, and Cologne, Bonn and Aachen in West Germany. In addition, it is observed that the operation of the sector is in the form of small and medium-sized but specialized companies that are suppliers of large and international companies. According to the data of the "Supply Chain Excellence Initiative" in Germany, approximately 2,000 supplier companies operate in the aerospace sector in Germany. In order for the sector to maintain its competitiveness, it is imperative that it expands abroad and finds suppliers from abroad. German companies first turn to suppliers in Germany, Austria and Switzerland, with France and Southern European countries coming to the fore as important suppliers. Outside of Europe, German companies prefer the USA.
The amount allocated to research and development activities in the aviation and space sector in Germany was 2.9 billion Euros in 2020, which corresponds to 9.3% of the total turnover of the sector. R&D activities are focused on the production of aircraft with low carbon dioxide emissions and less noise in the 21st century, and 90% of the budget allocated to research and development in the sector is used to achieve this goal. Another goal is to produce hybrid aircraft with electric engines. In addition, in order to minimize the need for kerosene, the use of biofuel (work on the use of algae is being carried out) and solar energy (solar kerosene) are also being investigated in the current studies. In addition, innovative approaches are also put forward in in-flight cabin applications and importance is attached to cabin designs. The “Crystal Cabin Award” competition, which takes place in the Aircraft Interiors Expo fair held every year in Hamburg, attracts great attention and it is possible to introduce the designs to the aircraft manufacturers by finding an investor for the designs that won the award in the aforementioned competition.
METAL AND ELECTRICAL INDUSTRY
The M+E industry is Germany’s key industrial sector. It generates a turnover of more than 1 trillion euros a year in more than 25,900 companies with a total of around 3.9 million employees.
The companies generate most of their turnover by manufacturing capital goods. Two thirds of products and services are exported. The M+E industry is largely made up of small and medium-sized enterprises. Over two thirds of the companies employ fewer than 100 staff; only two percent have a workforce of over 1000 employees. The largest M+E sectors are mechanical engineering, the automotive industry, electrical engineering, metal-working and the precision mechanics/optics/clocks sector.
Economic situation of the M+E industry
The new orders are gradually decreasing. However, the order backlog remains high. Production and sales were able to recover as a result of stabilized supply chains. In view of increasing production plans, this development is likely to continue in the first half of 2023.
The number of employees continues to rise and is 65,500 more than in the previous year. The (re)construction has broadened. Demographics and labor shortages are holding back an even faster recovery.
The situation is generally assessed as good. Although the outlook remains uncertain, expectations at the beginning of the year were again less pessimistic. Other leading indicators have also stabilized. However, the outlook remains very uncertain, especially for suppliers affected by structural change.
Although energy prices have fallen, they are still at a non-competitive level in an international comparison. The growth forecasts for Europe therefore remain at a low level, but no longer assume a recession, at least for Germany.
In 2022, price-adjusted, 4% fewer new orders were registered than in the same period of the previous year. Domestic orders in particular are fewer. Rising prices covered falling demand until the middle of the year. In the meantime, however, the order value is also decreasing.
The ratio of new orders to sales (so-called book-to-bill) has fallen below 100% for the first time since mid-2020. This indicates that companies are working off their order backlog. At 6 months, this is still at an above-average level.
Sales are increasing faster than production because work in progress has been finalized thanks to the stabilized supply chains. However, there are also signs of a structural shift at the expense of domestic value creation.
In addition, as a result of the (partial) passing on of increased energy and purchasing costs, the gap between volume and value is widening. In 2022, for example, sales value increased by 14%, while sales volume increased by only 5%. At industry level, the price effects are particularly pronounced in the more energy-intensive foundries (+17%/-3%) and metal manufacturers (+12%/-1%).
The situation in the M+E industry is characterized by structural change. The electronics industry in particular has an above-average order situation. Despite an increase, production cannot keep up. On the other hand, the improved material situation allowed auto production to stabilize; the number of units reached around 3/4 of the level of 2018 in January 2023. The industry is also benefiting from the finalization of old orders, while new orders in the supplier area weakened.
The economic forecasts for 2023 are revised slightly upwards. In an international comparison, however, Germany's GDP growth is still in the black behind the EU average and the USA. The engine of growth is again Asia, where additional impetus is expected from the openings in China.
LOGISTICS
Germany is the country with the longest motorway network in Europe, with a motorway length of 13.200 km, which constitutes a part of the total road network of 230,082 km. The length of the waterways is 7,675 km and the length of the railways (the length of the lines operated) is 37,775 km. When the advanced energy and communication network and the dense and extensive transportation infrastructure come together, timely and fast product delivery can be guaranteed, and with this feature, Germany can maintain its superior performance in logistics in Europe at the global level. As a matter of fact, Germany ranks first in almost all the criteria (customs clearance, infrastructure, international loading, logistics competency, tracking and tracking the cargo and keeping up with the time) that make up the "International Logistics Performance Ranking Performance IndexLPI-- Logistics 2018" published by the World Bank.
It is seen that the largest logistics companies in Germany are concentrated in the states of North Rhine-Westphalia, Bavaria and Baden-Württemberg. In the logistics sector, which creates employment for 3 million people, it is seen that in addition to large companies, small and medium-sized companies are predominantly involved, and approximately 60,000 companies operate in the logistics sector. In addition, in Hamburg, the most important logistics city of Germany, approximately 315,000 people work in the logistics sector. The port of Hamburg is the second largest port in Europe and the most active logistics center in Germany.
The German Screw Association
The German Screw Association eV (DSV) represents the interests of the German screw, nut and rivet manufacturers who are full members of the association. Associated member companies of the DSV are disc manufacturers, who play a special role, as well as suppliers, service providers and machine and screw device manufacturers that are important for the screw industry. The associated member companies cover the entire process chain in the production of mechanical fasteners. Furthermore, a number of university institutes are associated members of the DSV.
The purpose of the German Screw Association is to promote the common economic, technical and scientific interests of its member companies.
This happens through
· Advice, information and exchange of experiences
· public relation
· Joint work in specialist groups and working groups
· Technical training and further education of staff of the member companies and the user industry
· Representation of the interests of members towards state authorities, institutions, as well as decision-makers from politics, business, science and other industrial and professional associations
· standards management
· Assistance with legal opinions
· Support for the development of sustainable processes / FRED
The German Screw Association has had a very strong technical focus since it was founded in 1977 and has constantly expanded this focus to this day.
The technical support of our member companies and their customers are also important measures to maintain the competitiveness of the German screw and nut industry.
With regard to the data from the Federal Statistical Office and Eurostat, it should be mentioned that some code numbers and corresponding assignments to individual products have changed since 2017. Some numbers were added to the production data for Prodcom, while blind rivet nuts with a separate customs tariff number were newly introduced in the customs tariff numbers CN 7318 for export and import, which meant that other products with the same designation had to be given different customs tariff numbers. Since January 2017, both changes have led to some uncertainties in the reports and probably also to one or the other incorrect report.
Products:
Screws, nuts, rivets and other mechanical connecting elements according to DIN, ISO and EN standards and according to customer specifications (drawing parts); differentiated according to thread form, diameter and length, head and shank form, application of force, material and strength as well as surface finishing.
Manufacturer:
Around 50 manufacturers with around 8,000 employees. Predominantly medium-sized industry structure: Half of the companies have fewer than 100 employees, only about 10% have more than 500 employees.
