Fuelling the Growth Engine: German Industry Needs Suppliers from Abroad
Germany has become a knowledge-driven economy with a strong tertiary sector. Yet, industrial enterprises play a key role in the country's economic growth. As a result, Germany has the world's largest industrial sector.
The German industry is very diversified and has a leadership position in many sectors worldwide. The automobile Industry, the mechanical engineering sector and the chemical industry are leading producing and exporting industries. Innovative sectors like renewable energy, nano- and biotechnology have been growing steadily in the past years boosting the country's competitive edge and consolidating Germany's presence and impact in the world economy.
Although large local companies have a strong position in the industrial sector, more than 33 percent of the industrial turnover and 98 percent of all German industrial activity is generated by small and medium sized enterprises (SMEs - companies with 500 employees or less). These SMEs employ over 20 million people that yield a turnover of more than 1.3 trillion Euros per year.
As a major processing nation, Germany depends basically on imports to feed its local industries. Holding the title of world champion in exports, the German economy relies on the import of goods and services as much as on export markets for its success.
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