The German industry is considered the backbone of the country’s economy. For it to remain in this position, the government will need to make Germany more attractive for foreign and domestic investors, encourage innovations and endorse structural change.
In Germany, the industrial sector contributes about a fourth to the country’s economic output, more than in other industrialised countries such as the US or France. Because exports are driven by the German industry, the sector is also important for Germany’s external economic performance.
The digitisation of the working world and the increasing interconnectedness of people and machines will provide companies and employees with greater flexibility and leeway. At the same time, employers and employees will need to master new tasks and skills and acquire – for instance – knowledge in information technologies. If seized successfully, the chances offered by the so-called Industry 4.0 will put the German industry in a strong position, both on a European level and internationally.