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Topic - Alliance for the "Future of Industry"

Joining forces to strengthen German industry

Introduction

We need to work together to reshape our industrial policy so that our industry will remain the strong core of the German economy in future. This is what the Alliance for the “Future of Industry” is about. It brings together trade unions, industrial and employers’ associations, and the Federal Ministry for Economic Affairs and Energy.

The partners in the Alliance want to make Germany a sustainable and modern industrial centre and to boost its industrial competitiveness.

Focusing on the importance of industry

Our industry is an essential guarantee for growth, prosperity and jobs. 8 million people work in some 100,000 industrial enterprises in Germany. And there are also a large number of industrial service providers. Overall, roughly 15 million jobs depend directly or indirectly on industry. The people working in the goods-producing sector generate one-quarter of total value added and three-quarters of exports. And industry pays the lion’s share of the money spent on research and development. Germany’s innovative industrial enterprises are leaders on resource efficiency and thus make an important contribution towards protecting the environment and combating climate change.

Tackling new challenges

However, the tough international competition, demographic change and disruptive technologies like digitisation are confronting industry with great challenges. The Alliance for the "Future of Industry" has a clear goal: to strengthen industrial output in Germany and by utilising the opportunities offered by the changing situation to benefit Europe.

In the context of this joint effort, specific agreements are to be made and priority measures developed in order to strengthen industrial competitiveness.

The Alliance is not intended to replace existing forums, platforms and dialogues between the social partners, business and government. Rather, the existing results and demands from sector-specific dialogues are to be pooled, weighted, communicated and translated into binding strategies for action. The Alliance for Industry brings together central industrial policy expertise at national level, ensures a better coordination of industrial policy interests, and pools responsibilities. In this way, we will achieve better coordination of key areas of research and funding policy and of industrial and competition policy in Germany and Europe.

Four figures which illustrate the importance of industry

8
Symbolicon für Menschen

million
employees subject to compulsory insurance, for a functioning welfare system

1.75
Symbolicon für Geld

billion in turnover
for secure wages and salaries

57
Symbolicon für Mikroskop

billion euros
spending on research and development

62,000
Symbolicon für Urkunde

patent applications
for innovations which improve our lives

The Partners

A strong alliance for German industry

Sigmar Gabriel, the Federal Minister for Economic Affairs and Energy, Detlef Wetzel, then Chairman of the German Metalworkers' Union (IG Metall), and Ulrich Grillo, President of the Federation of German Industries (BDI), initiated the founding of the Alliance for the "Future of Industry" in November 2014. The Alliance was officially inaugurated on 3 March 2015.

Alongside the three initiators (Federal Ministry for Economic Affairs and Energy, the German Metalworkers’ Union (IG Metall), and the Federation of German Industries (BDI)), the following 14 partners are active in the Alliance: the German Chemical Industry Association (VCI), the German Association of the Automotive Industry (VDA), the German Engineering Federation (VDMA), the German Electrical and Electronic Manufacturers’ Association (ZVEI), the Federation of the German Construction Industry (HDB), the Confederation of German Employers’ Associations (BDA), the Federation of German Employers' Associations in the Metal and Electrical Engineering Industries (Gesamtmetall), the German Chemical Industry Employers' Association (BAVC), the Association of Steel Producers (WV Stahl), the Association of German Chambers of Industry and Commerce (DIHK), and on the trade union side the German Trade Union Federation (DGB), the Mining, Chemical and Energy Industrial Union (IG BCE), the Trade Union for Construction, Agriculture, and the Environment (IG BAU), and the Food, Beverages and Catering Union (NGG).

Woman; Source: mauritius images/Cultura

© mauritius images/Cultura

Method of work

How does the Alliance work?

The Alliance does its work in five working groups. These draft recommendations for action on the key issues, from public acceptance of industry through to competitiveness.

Each working group has two chairs, one from the employers’/industry side, and one from the trade union side. The recommendations by the working groups are presented to a steering body, called the “Sherpa Round”. The sherpas are leaders nominated by the partners in the Alliance. This group is chaired by State Secretary Matthias Machnig.

The Sherpa Round prepares the meetings of the High-Level Group (HLG), which take place roughly every six months. The HLG includes the Federal Minister for Economic Affairs and Energy, Sigmar Gabriel, the presidents of the business associations, and the chairs of the trade unions and of the Trade Union Federation. The HLG adopts specific measures and demands. The topics of the working groups:

WG 1: Public acceptance - attractive industry

WG 2: An industry that invests

WG 3: Future of work in industry and industrial services

WG 4: Value creation structures of the future

WG 5: International competitiveness of German industry

Future of Industry Network

In order to implement the Alliance’s measures, the Future of Industry Network was set up in June 2015. The Economic Affairs Ministry welcomes this and intends to support the Network’s activities.

Further information on the Future of Industry network can be found at www.n3tzwerk.org (in German).

Woman in front of a monitor; Quelle: Getty Images/Bloomberg

© Getty Images/Bloomberg

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Shaping the Future of Industry

Looking to the future: How will we manufacture and work in 2030? What challenges is our industry facing? How can these be tackled? At the conference on the prospects of industry in 2030, the Alliance presented recommendations for action by European policy-makers.

The High-Level Group of the Alliance for the "Future of Industry" adopted a joint declaration (Joint Declaration on the "Prospects for the Future of Industry in 2030", 18.02.2016; PDF: 362 KB, in German) at the high-level industrial conference on the “Prospects for the Future of Industry in 2030” in the Federal Ministry for Economic Affairs and Energy.

It contains industrial policy guidelines and recommendations for action by the EU for an innovative industrial base with high levels of investment:

  • Europe’s global competitiveness must be boosted by investment and innovation. This requires more coherent legislation. Negative impacts, e.g. on investment activity and innovative capabilities in Europe, must be prevented (rules and regulations must undergo a competitiveness and innovation check).
  • Better coordination of legislation, and in particular an orientation to the international regulatory framework, is also important in energy and climate policy.
  • The EU and the Member States must work to ensure that the new climate resolutions agreed in Paris are globally binding in order to prevent carbon leakage, and ultimately also job and investment leakage. The 20% industry target must be granted the same priority as the 20% climate target.
  • In Europe, the design of the emissions trading system (ETS) must include the possibility of industrial growth based on technological progress.
  • As Europe moves towards the digital single market, the Alliance wants to see faster progress and the retention and establishment of key enabling technologies and skills (e.g. in microelectronics, battery cell manufacturing and research).
  • In terms of the possible Market Economy Status for China, the Alliance expects a clear analysis from the European Commission, and particularly a comprehensive economic impact assessment for European industry.

On 13 October 2015, the High-Level Group of the Alliance presented its first results: a programme of work (PDF: 541 KB, in German) and a Joint Declaration "For a modern and sustainable industrial policy in Germany" (PDF: 526 KB, in German).

Further information

  • 01/12/2016 - Press release - International Cooperation

    Press release: Germany assumes 2017 G20 Presidency - with a first meeting of G20 Digital Ministers

    Open detail view
  • 18/02/2016 - Press release - Alliance for the "Future of Industry"

    Press release: Minister Gabriel: "Europe needs more industry again" - Alliance for the "Future of Industry" presents recommendations for European industrial policy

    Open detail view
  • In focus - Sectors of industry

    Economic Affairs Ministry organises sectoral dialogues

    Open detail view
Turbine; Source: Getty Images/Jonathan Knowles