We need more Made in Germany? How we can secure our prosperity to crisis

Arasch Jalali relies on "Made in Germany". Nearly eight years ago, he founded, together with Anna Hoffmann, a PRO shop, a shopping Website for corporate custo

We need more Made in Germany? How we can secure our prosperity to crisis

Arasch Jalali relies on "Made in Germany". Nearly eight years ago, he founded, together with Anna Hoffmann, a PRO shop, a shopping Website for corporate customers. Craft enterprises and medium-sized businesses can buy in him, more than a Million brand-name products – from the Flipchart tools to more complex machines or respiratory protective masks and test tubes.

"prospects" in FOCUS Online

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This professional store of other intermediaries differs by the fact that the products are shipped directly from the manufacturer to the customer. On the other advertise Jalali and his Team but also in order to relate their products almost exclusively from German manufacturers. "The magic triangle of quality, cost and delivery time plays in the procurement of any product a role. For me it was always important that this is balanced. And this balance I've seen from the beginning, always and only with German manufacturers, especially when it comes to the reliability for these three components,“ is his plea for Germany as a business location compared to FOCUS Online.

To Jalali, it was never an Option, with producers in non-European countries to cooperate. A decision that proved to be, in particular, in the corona of a crisis, he says. "The consequences of the crisis so far for us manageable. Apart from the fact that the demand for some products has jumped in recent months in the height, we were able to realize almost all orders of our customers,“ says Jalali further.

Is "Made in Germany" in front of a Revival?

that had to have been different than in the case of large German companies that have outsourced production or part of your Goods equal to buy abroad, fragile supply chains, while the corona of a crisis is never a Problem for a professional shop.

for example, the electronics industry had, especially during lock downs in China with massive difficulties, because for example, in the case of half of many components, Hubei ladders in the beginning of the year, heavily affected Region are produced.

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examples like this show in Jalalis eyes, as strong domestic companies to global supply chains are bound, and what does it mean when this Stalled. He is therefore convinced that "Made in Germany" is experiencing a Revival. "In the past five to ten years has taken place in many companies, a change in thinking. Because delivery are control chains, now more and more difficult, the more global and complex they are. I believe, however, that the corona crisis was now a trigger to initiate action and to produce more in their own country,“ predicts the founder.

discussion than less globalisation is flared

One opinion, with the Jalali not alone stands. On The Contrary. In times of Corona-pandemic currently again a lot about the disadvantages of global networking, and shorter supply chains will be discussed. Some experts and managers to predict even a kind of De-globalization. In this new era, so the view of the supporters of Germany as a location, it would be our economy of regional and production facilities shifted back. Finally, the corona crisis have shown that Germany is too dependent on the Rest of the world. But is that true? The corona crisis teaches us that Germany needs less globalization?

it is established that the German economy chains with a view to the production of products and their value-added, in fact, strongly linked to the international economy is networked. Germany exported only Were many, but the local economy is also dependent on so-called intermediate consumption. The everything enterprises need for the production of goods, and Were says. This includes raw materials such as oil or Gas, but also, for example, components for machinery.

So strong the German economy is of global chains supply

in Germany, finished products, such as cars produced in the first place, are instructed a lot of companies initially on delivery (so-called inputs) from abroad. In the year 2019 imported German companies, precursors to the value of 606 billion euros, 55 percent of the total merchandise imports, Germany accounted for.

Galina Kolev by the Institute of German economy (IW Köln) looking at these Figures, but are reluctant to of a dependency of the German economy from the global trade. Instead, it was a "Integration in global value chains". This increasingly inter-nation have been nationalized and today, through the use of Outsourcing (delivery of corporate tasks and structures to external service providers), or Offshoring (German: Relocation) are distinguished, does not bring after all, only disadvantages. "In the corona crisis, the fragility of international supply chains is highlighted often, but do not forget also that Germany has benefited for many years extremely on global networking", the head of the research group "Macroeconomic analysis and economic" on the IW compared to FOCUS Online.

global networking competitive advantage

Kolev know is that global chains and Offshoring of delivery, not only in the pricing of products are the benefits. "It's also a question of natural resources. Do precursors, we need to import, because they are in Germany not available, or we can't mine here. Because I think, for example, of raw materials. Other primary products we import but also in order to exploit specialisation advantages. From an economic point of view, it makes much more sense to specialize in areas that can generate a particularly high value. In these areas, we set the capacities of our workforce, while we import other goods.“ In other words, bring in international chains for German companies to supply a certain competitive advantage over foreign competitors.

to produce The seemingly simple conclusion in the future, in Germany, in order to be less dependent on other countries, and so better to future crises prepared to go in Kolevs eyes, therefore, only to a limited extent. "From an economic point of view, the international supply chains, in any case, useful and also secure a large part of our prosperity," says you.

"protectionism will not take us any further forward"

Nevertheless, the researcher predicted that some companies are evaluating their supply chains to the corona crisis new. So would have shown "some of the risks currently to be a little clearer" and speak naturally nothing, however, to make Provision for times of crisis, a strategic buffer schedule – for example, by building stocks.

it warns in the current Situation, but tread Carefully: "as We have seen in the corona of the crisis a particularly drastic stress test for the German economy. This will not repeat itself in such intensity, hopefully soon. Now to make decisions for the business models of the next 40 to 50 years, based only on this extremely situation, I don't think is helpful.“

In the desire to get more production into his own country, sees Kolev also another danger: "it would send the wrong Signal to our trading partners and barriers to build. Protectionism is not the way forward in this crisis. Only if we act as a global world together, we can come out of the depths of the global recession out.“ The world is better than your bad news - FOCUS Online provides you every Friday with the best stories from the field perspectives. Subscribe here for free Newsletter:

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Updated Date: 16 June 2020, 06:27

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