What Is the Secret of Germany's Success in Manufactured Exports?

Germany is always mentioned when discussing global export successes in manufactured and value add goods. Many people may ask what is the secret of their success. One thing is certain - the German manufactured export success is not magic, it results from hard work, long-term vision and commitment.

One of the reasons explaining such a success is the fact that manufacturing in Germany is at the higher end of the value chain. This sector represents over 21% of the country's economy, which is nearly double that of Britain and more than 1/3 more in percentage terms than the United States.

The manufacturing sector creates more than 300,000 well paid positions of long term employment for German workers and many more other jobs. More than 1,000 small medium German manufacturing companies (some of them with employee numbers of less than 250) are world leaders in their chosen technical niche. This SME sector is growing in size and generating yet more technically innovative enterprises that produce quality manufactured goods for export.

Another reason is that from the late 1800s German engineering has been at the global forefront of standardising weights and measures, precision engineering, metallurgy, machine tools, chemicals, optics, automotive, aeronautical, rocket science, plastics etc.

German economic and manufacturing success is a result of its people ingenuity, organisation, discipline, commitment, collaboration and trust between Government, workers, unions, banks and research institutes, but also due to hard work and long-term vision. The secret is unveiled!

Source:
http://www.dynamicexport.com.au/export-market/articles-export-markets/Why-Germany-is-so-successful-with-manufactured-exports/

The Global Competitiveness Report 2015-2016

The World Economic Forum (WEF) is a Swiss nonprofit foundation whose mission is "improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas". The WEF publishes a Global Competitiveness Report every year since 2004. In this report countries are ranked based on the Global Competitiveness Index.

"The Global Competitiveness Report 2015-2016 assesses the competitiveness landscape of 140 economies, providing insight into the drivers of their productivity and prosperity. The Report series remains the most comprehensive assessment of national competitiveness worldwide".

According to the Global Competitiveness Index 2015–2016 countries rank as it follows:

1. Switzerland

2. Singapore

3. Unites States

4. Germany

5. Netherlands

6. Japan

7. Hong Kong SAR

8. Finland

9. Sweden

10. United Kigdom

11. Norway

12. Denmark

13. Canada

14. Qatar

15. Taiwan, China

16. New Zealand

17. UAE

18. Malaysia

19. Belgium

20. Luxembourg


Source:
http://reports.weforum.org/global-competitiveness-report-2015-2016/report-highlights/

Italian Plastics Market Strengthens Its Position

According to an analysis performed by the Italian trade group Assocomaplast, imports of machinery to Italy in the first half of 2016 indicated a strengthening in the Italian plastics market. Even if the trend in exports has been “much less impressive” in 2016, there are bright spots in regional markets for Italy’s machinery exporters.

Official ISTAT foreign trade data showed that imports were nearly 390 million euros in this period, which is a 9.7% increase comparing to the same period in 2015. In this context, Assocomaplast affirmed: “This would seem to reaffirm the signs of recovery in the domestic market that had shown up on the radar last year”.

Also, Assocomaplast President, Alessandro Grassi said that particular increases were seen in sales to the NAFTA (North American Free Trade Agreement) countries. Specifically, there was a strong increase in exports to Mexico, as exports of injection molding machines to Mexico increased by 10.2% in the first half of 2016.

The group equally pointed out that:

- sales of flexographic printers to all export destinations increased by 19.4% in the recent half-year, with major orders from the US.

- extrusion machine exports rose by 1.9% and showed “a clear increase in sales” to Mexico and to France.

- in the same period, Italian machinery exports improved to China, India, South Korea and Vietnam. Sales in Iran also increased following the end of economic sanctions.

- in terms of imports to Italy, the data showed the biggest increase in molds, mainly from Germany. An increase was also seen in injection molding machines, particularly from Austrian and German manufacturers.

Source:

http://www.plasticsnews.com/article/20160927/NEWS/309289999/machinery-imports-to-italy-up-in-advance-of-k-2016 

Agricultural Exports May Help Brazil Surpass Economic Crisis

A Brazilian diplomat who works with the World Trade Organization affirms that it is possible to increase the market for Brazilian products overseas if the country is able to remove trade barriers. He also claims that breaking the barriers could help Brazil surpass its economic crisis faster.

The same idea is expressed by Celso de Tarso Pereira during the fourth edition of the Agriculture Forum of South America: “We have competitive products, produced without subsidies, they should have unimpeded access in key markets”. Pereira explains that the main challenge for Brazilian exporters are enormous restrictions, quotas and tariffs. Apart from quotas and tariffs there are often restrictions by foreign buyers on Brazilian agricultural products, under the pretext that they do not follow international health standards.

In order to resolve this problem, Pereira proposes direct negotiations with potential importers, ‘to convince them that Brazilian products meet international health standards’.

The Brazilian government believes that by removing barriers and increasing agricultural exports, Brazil could surpass its economic crisis in a shorter time. According to the International Relations Secretary, at the Ministry of Agriculture, the government aims to increase the Brazilian agribusiness participation in world trade from the current 6.9% to 10%.