The Germans are traditionally renowned and respected for their engineering prowess, efficiency and innovation.
One can only admire the immaculate construction of an Audi or a BMW.
Since unification in 1989, the German phoenix has once more risen from the ashes to become Europe’s most advanced and strongest economy.
It has achieved this through its unerring capacity for innovation, an unwavering pursuit of perfection.
Germany has, according to the Consul General of Sydney, Dr Guenter Gruber “hit a sweet spot.”
”We have all the elements that attract investors – political and financial stability, highly skilled labour, leading edge innovation.
“This can only lead to long term economic commitment and fantastic growth prospects.”
While Australia has had the glory of riding on the sheep’s back and now languishes on the spine of a booming mineral resources industry, the Germans have had to use their wits.
“We have few resources and high costs of labour,” noted Dr Gruber. “However, when it comes to exporting, we are like no other country in the world.”
It’s a vehement claim, yet, Germany is at the heart of the European Union. Its central location, its capacity to sustain remarkable growth while constructing the latest telecommunications and most infrastructure – are all entwined in an annual growth rate of 2.8 percent.
And while this growth rate may pale compared to China’s overheating economy, Germany’s labour costs have only increased marginally by 1 percent in the last year.
Dr Gruber believes that investors looking at a ‘quick quid’ in Germany are advised to leave their short sightedness at home.
“Smart investors are putting their money into the IT, automobile and environment industries, in technology which is highly innovative and focused on competition.”
And what is spawning this growth outside of the ubiquitous German zealousness for perfection?
The backbone of Germany, the heart and soul, says Dr Gruber, are the small to medium size businesses. These businesses, he believes, are the most innovative of all businesses in Germany.
The Germans are also typically clever. They are buying back companies, re-engineering them and launching them back into the world market – at a cost of course and reaping ample financial rewards as a result. International courier service DHL and shipping giants Schenker are examples of companies that have been outsourced to the wide world.
They are sharing platforms to manufacture products. Automobile manufacturers Audi and Volkswagen have placed operations in countries such as the Czech Republic to localise their markets and spread their products appeal.
They are quite simply (and in that unique German way), taking advanced technology and globalising it. And the strength of this achievement lies in their willingness to invest in research and development – and lots of it.
Having a physicist leading the country is also as major step in the right direction. Angela Merkel is focusing on knowledge management and intellectual property. Why wouldn’t you when you have few, if any resources available?
German gravitas it seems has not only made innovation an art form; it has made its economy strong once more.
For more information about this topic or if you are interested in strategies to grow your business in other international markets please call 1800 505 529 or email international.trade@australianbusiness.com.au
