Germany as an industrialised country – the main facts (2024)

FAQs

Germany as an industrialised country – the main facts? ›

Four sectors dominate German industry: the automotive, mechanical engineering, chemical and electrical industry. Global players are Volkswagen, Daimler, BMW (all automotive), BASF, the world's largest chemical company with around 118,000 employees, and Siemens (electrical).

Leading industries. The central growth engine for industrialization in Germany was railroad construction. The demand generated by the railroad boosted developments in the three closely interrelated key industries: mining, metal production and mechanical engineering.

German industrialization was largely driven by coal and steel production, of which Germany had rich deposits, and these were used in construction and infrastructure to modernize the country. The mechanization of agriculture also fed into this, as many people from rural regions flocked to cities in search of work.

Rhine-Ruhr, at the center of Germany's industrial heartland, is the historic headquarters of steel, mining and automobile production. These industries demand an active network of logistics distribution and industrial properties.

Germany's principal industries include machine building, automobiles, electrical engineering and electronics, chemicals, and food processing. Automobile manufacturing is concentrated in Baden-Württemberg, Lower Saxony, Hessen, North Rhine–Westphalia, Bavaria, the Saarland, and Thuringia.

Germany is the top trading nation in the European Union and considered to be one of the most international economies in the world after the USA, China, and Japan. A national focus on innovation and international exports is present within the country, which many businesses are embracing.

Huge factories were built and turned out more goods at an ever faster pace. Industrialization progressed and the bourgeoisie gained ever more influence. Widespread railway construction also boosted the economy, making mass production and the efficient distribution of goods possible.

*What factors did Germany possess that made industrialization possible there? Germany had ample coal and iron resources, a disciplined and educated workforce, a growing population, and had made previous progress in building industries and railroads.

In Germany new methods of production developed very late because the country was divided up into so many small states. Nevertheless after the customs union of 1834 productive heavy industries developed in the mining regions of upper Silesia, in the Saarland and the Ruhrgebiet.

Four sectors dominate German industry: the automotive, mechanical engineering, chemical and electrical industry. Global players are Volkswagen, Daimler, BMW (all automotive), BASF, the world's largest chemical company with around 118,000 employees, and Siemens (electrical).

When did Germany become industrialized? ›

At the end of the 18th century, mechanised manufacturing began in isolated cases. The textile industry was also a pioneer in Germany, especially in established locations such as the Rhineland, Silesia and Saxony.

The key natural resources of Germany include timber, natural gas, coal, lignite, uranium, iron ore, arable land, construction materials, potash, nickel, salt, and copper. Globally, the country is: A leading producer of lignite. The second largest producer of refined selenium.

International trade in Germany

Germany is one of the most international economies in the world and the third-largest trading nation after China and the US. Exports contribute to 50% of the annual GDP in Germany.

Germany has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation. Germany is a member of the European Union (EU).

4th largest Gross Domestic Product (GDP) in the world. Largest economy in the European Union. Germany's main exports are cars, machinery, chemicals, computers, and electronics. 11th in the Index of Economic Freedom, 2022.

After the extensive development of the railway network during the 1840s, rapid economic growth and modernisation sparked the process of industrialization. The largest economy in Europe by 1900, Germany had established a primary position in several key sectors, like the chemical industry and steel production.

When a German is at work, they are focused and diligent, which in turn leads to higher productivity in a shorter period of time. Germans work hard and play hard. Since the working day is focused on delivering efficient productivity, the off hours are truly off hours.

Why are German companies so successful? ›

That includes product quality, customer proximity, service, the quality of employees, technology leadership and innovation. They expect themselves to meet the same high-quality standards in foreign markets as they do in their home market.

The Industrial Revolution shifted from an agrarian economy to a manufacturing economy where products were no longer made solely by hand but by machines. This led to increased production and efficiency, lower prices, more goods, improved wages, and migration from rural areas to urban areas.

Germany had ample coal and iron resources, a disciplined and educated workforce, a growing population, and had made previous progress in building industries and railroads.

Industrialization, along with great strides in transportation, drove the growth of U.S. cities and a rapidly expanding market economy. It also shaped the development of a large working class in U.S. society, leading eventually to labor struggles and strikes led by working men and women.

The positive characteristics of industrialization include economic growth, a more efficient division of labor, and a growth spurt in technological innovation.

Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy.

The Wirtschaftswunder (German: [ˈvɪʁt. ʃaftsˌvʊndɐ] ( listen), "economic miracle"), also known as the Miracle on the Rhine, was the rapid reconstruction and development of the economies of West Germany and Austria after World War II (adopting an ordoliberalism-based social market economy).

The four major reasons behind the unification of Germany are the role of Bismark, the strength of the Prussian economy, the decline of Austria, and the military power of Prussia. The economic strength of Prussia was one of the most important reasons behind the unification of Germany.

The German Govt promoted economic development by issuing a single currency (1871), reorganizing the bank system, and coordinating railroads built by various German states. They were determined to maintain economic strength as well as military power.

What makes Germany different from other countries? ›

Germany is known for its long and rich history, one that has put it at the forefront of European thought, politics, and art for over 1,000 years. This history has shaped a culture that combines predominantly Christian values with literature, art, philosophy, logic, reason, and, of course, a love of beer and sausages.

Exports The top exports of Germany are Cars ($135B), Packaged Medicaments ($64.6B), Motor vehicles; parts and accessories (8701 to 8705) ($64.5B), Vaccines, blood, antisera, toxins and cultures ($45.6B), and Planes, Helicopters, and/or Spacecraft ($21.2B), exporting mostly to United States ($135B), China ($121B), ...

This huge expansion of industry led to significant demographic changes. By 1910 60% of Germans lived in towns and cities. The population of Berlin doubled between 1875 and 1910 and other cities like Munich, Essen and Kiel grew rapidly. By 1910 there were 48 German towns with populations over 100,000.

The Industrial Revolution began in Britain in the 18th century and from there spread to other European countries, including Belgium, France, and Germany, and to the United States.

incorporation into Hamburg

Harburg, and Wandsbek in 1937, Hamburg has become Germany's major industrial city. All processing and manufacturing industries are represented there.

Germany is a world-leader for exporting cars, drugs and medicines, and automotive parts or accessories.

In 2021, Germany's primary trade partner was the European Union which accounted for 67.5% of exports and 65.6% of imports (BMWi). Accounting for 8.9% of German exports, the U.S. remained Germany's most important export market in 2021, followed closely by China (7.6%), France (7.4%) and the Netherlands (6.6%).

Employment Rate in Germany averaged 69.15 percent from 1992 until 2022, reaching an all time high of 77.30 percent in the second quarter of 2022 and a record low of 63.40 percent in the first quarter of 1997.

In the long-term, the Germany GDP Growth Rate is projected to trend around 0.50 percent in 2024 and 0.40 percent in 2025, according to our econometric models. Germany is the fifth largest economy in the world and the largest within the Euro Area.

Last update (13/02/2023)

Germany's real GDP increased by 1.8% in 2022.

Is Germany an industrial powerhouse? ›

Germany is the central location for business in Europe. It is Europe´s largest and the world's fourth-largest economy in terms of GDP. The label “Made in Germany” stands for quality and innovation. Find out more!

Largest companies in Germany 2022, by market capitalization

SAP was established in 1972 in Germany and is the largest software company in Europe. Siemens and Deutsche Telekom followed, each with market capitalizations of approximately 102 and 98 billion U.S. dollars respectively.

The main industrial areas are the Ruhr district in North Rhine-Westphalia, the traditional center of German coal, steel, and heavy industry; the concentration of industry around several large cities, such as Hanover, Munich, Frankfurt am Main, and Stuttgart; the chemical production areas that stretch mainly along the ...

Germany as an industrialised country – the main facts. In Germany, industry is the foundation for growth – much more so than in other countries Prosperity.

The important role of industry

In Germany the share of industry in gross value added is 26.6 per cent, making it the highest among the G7 countries. The strongest sectors are vehicle construction, electrical industry, engineering and chemical industry.

The German economy owes its competitiveness and global connections to great innovation and a strong export orientation. Export accounts for more than half of all turnover in industries such as the production of cars, machinery and equipment, as well as in the chemical industry and medical technology.

Germany is dominated by manufacturing industries including automotive, chemicals, metals such as iron and steel, electrical equipment, coal, ships, machine tools, high precision equipment, optics, pharmaceuticals, textiles, and plastic goods.