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German electrical and electronic industry
August 18, 2009
Industry structure allows hopes of early return to growth
Broad portfolio with the focus on capital goods. Close to 80% of the
International topics
German electrical and electronic industry‟s products are capital goods. The industry has an above-average bias towards these products both on international comparison and compared with German industry generally. It relies first and foremost on corporate capital investment and is therefore relatively vulnerable to economic cycles.
German electrical and electronic industry plays leading international role. Germany is the leading production location in Europe and the global No. 5.
German electrical and electronic manufacturers supply customers worldwide. The focus of their export activities is on Europe. Asia dominates the global electrical and electronic industry on both the supply and the demand side. The ascendancy of this region was more at the expense of the USA than Europe.
Difficult year in 2009 – recovery in 2010. The fall in new orders and
production in the electrical and electronic industry slowed in March for the first time and meanwhile came to a halt. After the steep plunge in the first six months we expect a price-adjusted drop of about 20% in production in 2009. The industry should recover in 2010. The bias towards capital goods should enable an early return to respectable growth – alone because of a statistical level effect and overhang at the turn of the year 2009/2010. The industry should see growth of 6% next year.
Long-term growth trend unbroken. In post-unification Germany the electrical
Authors Philipp Ehmer +49 69 910-31879 philipp.ehmer@db.com
and electronic industry has grown at an average annual rate of 3%. Changing demographics have led to a shortage of engineers which limits the industry‟s growth potential. On the other hand, the electrical and electronic industry stands to benefit from the need
German electrical and electronic industry
August 18, 2009
Industry structure allows hopes of early return to growth
Broad portfolio with the focus on capital goods. Close to 80% of the
International topics
German electrical and electronic industry‟s products are capital goods. The industry has an above-average bias towards these products both on international comparison and compared with German industry generally. It relies first and foremost on corporate capital investment and is therefore relatively vulnerable to economic cycles.
German electrical and electronic industry plays leading international role. Germany is the leading production location in Europe and the global No. 5.
German electrical and electronic manufacturers supply customers worldwide. The focus of their export activities is on Europe. Asia dominates the global electrical and electronic industry on both the supply and the demand side. The ascendancy of this region was more at the expense of the USA than Europe.
Difficult year in 2009 – recovery in 2010. The fall in new orders and
production in the electrical and electronic industry slowed in March for the first time and meanwhile came to a halt. After the steep plunge in the first six months we expect a price-adjusted drop of about 20% in production in 2009. The industry should recover in 2010. The bias towards capital goods should enable an early return to respectable growth – alone because of a statistical level effect and overhang at the turn of the year 2009/2010. The industry should see growth of 6% next year.
Long-term growth trend unbroken. In post-unification Germany the electrical
Authors Philipp Ehmer +49 69 910-31879 philipp.ehmer@db.com
and electronic industry has grown at an average annual rate of 3%. Changing demographics have led to a shortage of engineers which limits the industry‟s growth potential. On the other hand, the electrical and electronic industry stands to benefit from the need