Made in Germany (english)
Studio Guest: Wolfgang Gerke, Financial Market Expert
Our studio guest is Wolfgang Gerke, President of the Bavarian Finance Centre in Munich.
DW-TV: Steiff is bringing it's stuffed animals back to Germany. Some analysts believe that's just the beginning. They're predicting an exodus of high quality manufacturers like Steiff back to Europe. Mr Gerke, are we looking at a general reversal of the globalization process?
Gerke: No I wouldn't say in a global economy it isn't unusual that there are investments, reinvestments, some companies are failing, so, that's a normal process.
DW-TV: Now there are several companies that has decided to move production back into Germany after having been overseas.The Fraunhofer Insitute actually surveyed 1650 companies - their biggest gripe was the lack of flexibility - followed by quality issues and than rising labor costs and substandard infrastructure. These seem like issues that perhaps should have been researched before hand?
Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: rueckkehrEng
Gerke: Yes for sure, but you cannot get certainty, but nevertheless if you have strategy you have to invest before and knowing more of the country with another culture, and then you will see that there is less flexibility in China than there is in Europe. And you have very different cultures if you take Brazil for example, at the moment has to accept that there is another culture and they are investing in another culture to learn more and that is the most important mistake one is doing is that one doesn't accept the different kind of living in China and the other countries.
DW-TV: Nevertheless, production costs in Germany remain high - and if you look at the rising energy costs, that isn't going to change anytime soon. So why do so many companies return to German than?
Gerke: There are many companies coming back but there are other companies disinvesting in Germany and I think that the high oil prices are agaisnt coming out of Germany. If you are producing in China you have high transportation costs to Germany and today if you look on the label of BMW or Mercedes there is written on Made in Germany but many products being in a Mercedes are coming from the outside. Especially you have to look that the German standards of qualitiy are the same all over the world and the companies are doing that.
DW-TV: And just briefly, what in your opinion, can the German government do to encourage more companies to move back to Germany?
Gerke: They have to change the whole policies and that isn't a special problem. Its a problem how can I look for less taxation in Germany, less costs, but I think that this are questions that we have in all our future.
