Role Of Logistic Sector In German Economy

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Register to read the introduction… Since the economy started to pick up in the second half of 2009, the logistic sector has made an impressive comeback and also its long-term growth prospects remain good. Logistics is dependent on business with the manufacturing sector, and is benefiting from the recent significant increase in demand for shipping by industrial clients. According to DB Research, over the next ten years the logistic sector can expect to post nominal growth of around 4% per year. The World Bank’s biennial Logistics Performance Index measures the attractiveness of 155 countries as logistics locations. For the first time, Germany is placed at the top of the ranking in 2010. In three out of six categories (infrastructure, timeliness and customs) Germany ranks in the Top 3. The other categories that the World Bank uses to calculate the overall ranking are logistics competence, tracking & tracing and international shipments. World’s Best Logistics …show more content…
Secondly, competitive currency depreciation does not only lead in these two countries to euro appreciation that damages exports. Thirdly, the raise of a recently potential ‘currency war’ includes the political risk of increasing protectionism, which could result in another setback for global trade. Fourthly, there are specific risks facing the logistics sector, for example in the form of rising fuel prices, personnel and environmental costs. Within DIHK’s business survey, German companies were asked where they see the biggest risks for their business development in the next 12 months. The results showed that increasing energy and commodity prices are considered to be the main risk in 2011. Whereas domestic and foreign demands were considered to be the biggest risks for companies in 2010; the risk evaluation of these issues is now significantly more relaxed. Nevertheless, a decline in domestic demand is still considered to be the second highest risk. The largest increase of risk evaluation can be seen of skills shortage. This holds especially true for mechanical engineering, IT-service providers, nursing, health services and even the catering industry. Skill shortage is in particular a challenge for small enterprises that have no large human resource management available. Providing the economy with qualified workers, will probably be the main challenge in the next years. n TOP-risks

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