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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.

The Alliance brings together industrial and employers’ associations and trade unions with 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. Furthermore, 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” wishes to utilise the opportunities offered by the changing situation, to strengthen industrial output in Germany, and to build up its international competitiveness. To achieve this, the members of the Alliance agree on, develop and coordinate priority measures.

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

The Alliance has been working on the future of German industry since March 2015. It was initiated by the Economic Affairs Ministry, the Federation of German Industries, and the German Metalworkers’ Union (IG Metall).

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?

Five working groups 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, 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 on these issues:

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.

In order to implement the Alliance’s measures, the Future of Industry Network was set up in June 2015. 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

Industrie 4.0

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Looking to the future

Looking to the future: How will we manufacture and work in 2030? How can we cope with the challenges resulting from the digitisation of the global economy and recent political developments? The Alliance discusses recommendations for European policy at its conferences.

Digitisation is leading to the fourth industrial revolution, and is changing the structure of our society. Also, the political events of the last few months are creating a need to discuss new common rules for fair and free trade.

International industrial conference: promoting fair trade in a globalised world

The partners of the Alliance “Future of Industry” and the Economic Affairs Ministry held the “International Industry Conference” on 7 February 2017. At the conference, the Alliance presented an interim review not only of its work, but also of the views of German industry on the new challenges on the world markets.

The conference and its international guests focused particularly on the three most important regional markets for German industry: the United States, China and Europe. In a joint declaration, the Alliance advocated strong and close economic cooperation within the EU and called for open markets and a value-based and equitable global trading system at international level.

Guidelines and recommendations for action in the field of industrial policy

During the 2016 Industry Week, the Alliance presented specific recommendations for better infrastructure, a viable emissions trading system, tax breaks, and skills development.

At a high-level industrial conference on the prospects for industry for the time up to 2030 held at the Federal Ministry for Economic Affairs and Energy, the High-Level Group of the Alliance for the “Future of Industry” adopted a Joint Declaration (in german) (PDF, 361KB).

The declaration sets out industrial policy guidelines and recommendations for action to be taken by the EU to pave the way for an innovative industrial base with high levels of investment:

  • Europe’s global competitiveness needs a fresh boost coming from investments and innovation. This requires more coherent legislation. Any negative impacts on investment activity or the ability to innovate are to be avoided (competitiveness and innovation checks).
  • Better legislative coordination is needed in the field of energy and climate policy, and these policies must sit firmly within the international regulatory framework.
  • 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, by extension, a relocation of jobs and investments out of Europe. The 20% target for the share of industrial value creation must be granted the same priority as the 20% climate target.
  • The European Emissions Trading System (ETS) must be designed in a way that leaves scope for industrial growth based on technological progress. The Alliance gave some specific recommendations on this during the 2016 Industry Week.
  • As Europe is now moving towards the digital single market, the Alliance wants to see faster progress and action to safeguard and retain key enabling technologies and skills in Europe (e.g. in microelectronics, battery cell manufacturing and research).
  • On the subject of China’s being potentially granted Market Economy Status, 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 (in german, PDF: 541 KB) and a Joint Declaration “For a modern and sustainable industrial policy in Germany” (in german, PDF: 526 KB).

Further information

  • Article - Sectors of industry

    Economic Affairs Ministry organises sectoral dialogues

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Turbine; Source: Getty Images/Jonathan Knowles