Companies and sectors

The German economy is characterised by its ‘Mittelstand’, small and medium-sized enterprises (SMEs) which are often family-owned. Although by definition such companies have fewer than 500 employees, they account for some three quarters of all jobs. Many of these firms have succeeded by specialising in the production of high-value customised niche products. As ‘purveyor of manufacturing equipment to the world’, Germany exports capital goods to the four corners of the globe. This strategy has enabled Germany, in contrast to many other long-industrialised countries, to retain its status as a strong manufacturing nation. Germany’s largest sectors are the automotive, electrical, engineering and chemical industries. Over the last decade, manufacturing industry’s share of total value-added has remained constant at around a quarter.