FOCUS ON GERMANY following the 2009 financial crisis . The annual average of employee numbers fell by 4.5 per cent to 70,000 men and women in 2020 .
" Nevertheless , given the sharp decline in production , it ' s obvious that companies are trying to keep their highly skilled employees for as long as possible . The instrument of short-time work remains useful and necessary here ," said Prokop .
Despite high losses , German manufacturers have performed well when compared internationally . The German industry accounts for a 16 per cent share of international production , ranking behind China but ahead of Japan . It also remains the world export champion , taking a 20 per cent share , ahead of Japan and China , according to the VDW .
Consuming 18 billion euros , China remains the world ' s largest market and the world ' s biggest importer , with an import volume of 5.4 billion euros despite double-digit losses . However , business could become more difficult in the future .
" Companies are already reporting strong pressure on prices and deadlines from Chinese clients ," explained Prokop .
In addition , the recently concluded RCEP trade agreement aims to facilitate intra-Asian trade . This will intensify competition with Japan and South Korea within the Chinese market . Finally , the Chinese government is striving to reduce its reliance on technology imports and there is intense speculation as to whether this can be achieved in the mediumterm .
“ Many VDW members were quick off the mark in establishing subsidiaries in China . They are continuing to expand these to reduce their own exposure to the government ' s economic policy strategies ,” added the VDW .
Environmentally-friendly mobility
The German machine tool industry sees attractive opportunities in the Green Deal and the 2050 climate protection targets . With its Euro 7 standard , the EU Commission is now planning to set the emissions limit for cars and trucks to zero by 2025 .
" This will more or less exclude the internal combustion engine and encourage Europe to rely fully on electric mobility . According to experts , it will not be technically possible to achieve zero emissions in internal combustion engines by 2025 , or only at a very high cost ," said Prokop , commenting on the project .
In fact , modern combustion engines will be indispensable in the medium term for achieving climate targets . They are already yielding emission values that are 50 per cent below the legal requirements , said the VDW . In addition , the use of hydrogen-based e-fuels ( generated with renewable energy ) can help achieve further major reductions in emissions , especially in existing vehicles .
GLOBAL PRODUCTION AND CONSUMPTION OF MACHINE TOOLS Chinese share in global production and consumption increasing
Global production 2020 = 55,5 BILL . EUR Share in brackets
GLOBAL FOREIGN TRADE OF MACHINE TOOLS Germany remains export world champion , German imports fell strongly
Global exports 2020 = 29,7 BILL . EUR Share in brackets
Despite high losses , German manufacturers have performed well when compared internationally
Heavy goods vehicles , mobile agricultural and construction machinery , the fire brigade and ships will continue to rely on internal combustion engines for some time to come because of the technical limitations to direct electrification . Greater climate friendliness in these application areas can only be ensured with a functioning research environment and value chain for engine technology , said VDW .
" An abrupt end to the combustion engine would slam the brakes on technical progress because Euro 7 would kill all further investment in engine development ," explained Prokop . There simply wouldn ' t be enough money . If combustion engines were to be phased out , experts fear that half a million jobs would be at risk in Germany alone , said the VDW .
The VDW therefore supports the conclusions of a recently published VDMA position paper . It calls for a technology offensive in favour of environmentally friendly
Global consumption 2020 = 55,2 BILL . EUR Share in brackets
Source : VDW , VDMA , national associations
Global imports 2020 = 28,8 BILL . EUR Share in brackets
Source : VDW , VDMA , national associations
mobility . The aim is for the organisations to work together with industry to achieve climate neutrality , and to draw upon the strengths of companies in developing new technologies . For this reason , it says , many different technologies should be deployed to reduce exhaust gas and CO 2 emissions . In the future , this will include the use of hydrogen and synthetic fuels in vehicles , and further optimisation of the combustion engine , the use of fuel cell technology and a growing number of battery-powered vehicles .
" Relying solely on electromobility would lead to an extreme increase in electricity demand , which could not currently be covered by renewable energy ," said Prokop .
" The EU is called upon to launch a broadbased modernisation campaign and to provide the required framework ," he concluded . In addition to the automotive industry , this would also support the transformation process in user industries such as the construction sector and agricultural machinery production . n
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