Logistics: A Key to a Robust German Economy

Port of Hamburg, Germany

Germany continues to stand strong amid the well-publicized suffering of its neighbors throughout the European Union (EU).  And the country appears to have discovered a key piece of the puzzle that can be levered to help create prosperity and growth: logistics.

Far from being a poor, distant cousin to the more glamorous commercial pastimes of sales and marketing, logistics has become a central player in the German economic engine. The country is well-situated geographically, and has invested heavily in building solid infrastructure. Their strength in logistics is now being used as a competitive advantage, trumpeted to attract foreign investment.

Moreover, in a stunning display of optimism, logistics companies in Germany are planning to hire up to 50,000 workers this year, according to a new study by German industry association BVL. Is that exciting, or what?

In a press release earlier today, Germany Trade and Invest commented:

The industry is a key barometer for the health of Germany’s economy. Despite ongoing uncertainty in Europe, exports are expected to remain a driving force of Germany’s economic strength. Foreign investors can benefit from current business trends by entering the German market, according to Germany Trade & Invest experts at this year’s CSCMP from April 23-25 in Frankfurt.

“Germany’s top-notch infrastructure and its position at the center of Europe make it a key logistics destination. Our ports, airports, highways and railways are used to serve over 500 million consumers across Europe as well as markets in Asia,” said David Chasdi, logistics expert at Germany Trade & Invest in Berlin.

German ports are one key piece of the puzzle. Hamburg’s container traffic jumped 14 percent last year, recapturing the number two spot in Europe. The North Sea port of Bremerhaven also claimed the top European spot for shipping of automobiles. Over 2.1 million cars passed through this port, destined for overseas markets that favor German quality.

(Read more here…)

Just a few days from now, from April 23, 2012 to April 25, 2012, the CSCMP Europe 2012 Conference will be held in Frankfurt, Germany in part to discuss these opportunities. The focus of this conference will be Supply Chain Innovation. While it is a little too late for most of us (I live in Canada) to attend the conference on such short notice, a CSCMP World Conference will be held in Atlanta from September 30, 2012 to October 3, 2012. Here is what Germany Trade and Invest has to say about next week’s event:

Discover groundbreaking solutions that will enhance your supply chain and the impact it has on your customer’s operations and performance at CSCMP Europe 2012. Global supply chain leaders will discuss the vital and dynamic processes you need to master successfully and compete in today’s marketplace, including performance measurement, talent acquisition and management, collaboration, risk management, and customer-centric strategies. (For more information about CSCMP Europe, please click here…)

Here is a link to learn more information about the Global Event in Atlanta in September…

Here are some amazing numbers about the logistics industry in Europe, supplied by Germany Trade and Invest:

• Annual revenues over EUR 215 billion, making Germany Europe’s Logistics’ leader.
• Germany is a global leader in logistics innovation, technology and services with over 2.65 million industry employees.
• Germany is the world’s 3rd largest exporting nation and 3rd biggest importer of goods.
• Europe’s biggest economy & 4th largest worldwide, annually generating EUR 2.5 trillion worth of goods and services.
• Home to global logistics leaders, such as Deutsche Post World Net ( Nº 1), DHL, Schenker and Dachser.

The Council of Supply Chain Management Professionals (CSCMP) is the preeminent American association for individuals involved in supply chain management CSCMP provides educational, career development and networking opportunities to its over 9,000 members and to the entire professional community.

Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to German companies that seek to enter foreign markets.

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