Germany ’ s declining productivity growth calls for policy measures to promote innovation
must also emphasize the importance of vocational training and support industrial-technical vocational colleges . These can also represent an attractive regional economic factor . Such colleges can also serve as torchbearers because they often have better technological resources than other types of schools . To encourage further digitalisation , many more vocational schools must be granted budgetary independence , allowing them to take responsibility for their own investment ,” said the VDW .
“ The ‘ Dual ’ training system is a popular export that must not be put at risk ,” Bernhard concluded .
Energy transition potential for machine tool industry
The planned energy transition is shining a spotlight on the restructuring of the energy industry . The VDW has commissioned the Munich-based consulting firm Strategy Engineers to investigate the resulting potential for the machine tool industry . The study is currently in the final phase and will be presented to VDW members in the second half of March .
Most major industrialised countries have developed ambitious strategies aimed at reducing CO 2 emissions . An important factor here is the energy sector , which currently accounts for 25 per cent of emissions . Key solutions include the expansion of low-emission energy , upgrading of the power grid and the development of a hydrogen economy .
“ All in all , the conversion to zero-emission energy sources represents a mammoth global task for which trillions of euros must be invested annually worldwide ,” Bernhard said .
The energy industry has not been targeted by German machine tool manufacturers until now due to the low volumes and long service lives involved . However , higher investments are now giving rise to increasing unit numbers of mechanical components for wind turbines ( e . g . gearboxes , tracking systems and large bearings ); combustion engines with relevance for the energy transition ( gas turbines ); general mechanical peripheral components such as heat pumps for building heating ( generators , compressors ) and , in the future , components for use in hydrogen production ( electrolysis ) and in mobile and stationary fuel cells ( fuel cell system with stack as well as balance-of-plant with compressors , valves , pumps etc .).
“ How large the volume will be in each case depends on the pace of transformation ,” Bernhard concluded . So far , there have been many declarations of intent . Politicians now need to create a reliable framework for restructuring which will then allow companies to reorient themselves in response to any opportunities which may arise , said the VDW .
Digital transformation and productivity
The pandemic has highlighted the urgency of digital transformation . Germany is a world leader in technology and engineering but trails its peers on various metrics of information and communications technology ( ICT ), according to the International Monetary Fund ( IMF ).
“ The share of high-speed (> 100Mbps ) subscriptions is low in Germany compared to its peers , especially in rural areas . Germany ’ s mobile broadband subscriptions are also low , due to higher prices for faster 4G data packages relative to comparator countries and still limited 4G coverage . Furthermore , German firms lag in adopting key ICT tools required to create value with data . These gaps in the digital infrastructure could hold back potential growth even more in the future if the economy emerges from the pandemic with a shift towards greater online working and consumption ,” commented the IMF .
The IMF also pinpointed the need to increase productivity levels in Germany .
“ Germany ’ s declining productivity growth calls for policy measures to promote innovation . Policies that foster business dynamism have become even more important in the context of the COVID-19 crisis . This includes policies to facilitate reallocation and technology diffusion , improve access to finance ( especially for young firms ) and for investment in intangible assets , while expediting the restructuring of established firms and the exit of non-viable firms . In addition , digital government can facilitate firm creation by reducing administrative costs ,” explained the IMF .
Germany has set national greenhouse emissions targets of a 65 percent reduction below 1990 levels by 2030 and net zero emissions by 2045 , along with various sectoral emissions goals . To achieve these targets , the government has introduced multi-pronged policy measures , including a national emissions trading system ( ETS ), which complements the ETS at the EU level . n
An exhibit at EuroBLECH in Germany , the world ’ s largest sheet metal exhibition .
46 | sheetmetalplus . com | ISMR March 2022