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    Home»Industry News»Supply Chain»German Economy: Slow Transformation
    Supply Chain

    German Economy: Slow Transformation

    By Kloepfel18. September 20242 Mins Read
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    Threatened German Industrial Value Creation

    The Institute of the German Economy (IW) has analyzed the transformation pathways for industrial Germany in a recent study.

    The study examines how Germany can respond to challenges such as high energy costs, shrinking markets, and demographic change. The core findings, presented by the IW in its press release, paint a somewhat alarming picture.

    Germany is losing ground in two-thirds of the most important indicators in international comparisons. In particular, small and medium-sized enterprises seem to underestimate the need for change.

    According to the IW, one-fifth of German industrial value creation is at risk in the medium term. This is primarily due to excessively high energy costs and shrinking markets for Germany’s traditional core technologies.

    However, the IW also highlights that the global climate transformation offers growth opportunities. In these new markets, the IW estimates revenues to exceed 15 trillion euros in 2023.

    According to the IW, an industrial policy agenda is required. The institute refers to this as the largest transformation effort since the post-war period. To achieve this transformation, more than one trillion euros in additional investment will be needed by 2030.

    The study “Transformation Pathways for Industrial Germany” was created in cooperation between the Institute of the German Economy, the Boston Consulting Group, and the Federation of German Industries.

    Source: www.kloepfel-consulting.com

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