GER - ArGeZ: The medium-sized supplier industry needs buying impulses

In Germany, the sales of the medium-sized supplier industry slumped dramatically at the beginning of the pandemic and are hardly recovering. State financial aid and reduced work hours were and are important instruments for maintaining the predominantly medium-sized supplier companies.

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But it is crucial to consolidate the sales figures. The German federal government has taken a step in the right direction with the economic stimulus package and wanted to provide purchasing incentives for automobiles by lowering VAT. Unfortunately, the sales figures did not react accordingly. Without significant and rapid increases in sales figures, however, the industries will not be able to get out of the crisis. Small and medium-sized enterprises will be threatened in their existence and will be forced to cut jobs.

"If production is not used to capacity again soon, very drastic cost-cutting measures must also be taken to the detriment of the workforce in the supplier industry," said Christian Vietmeyer, spokesman for the supplier industry working group.

The demands of some prime ministers for a swift expansion of purchase incentives are therefore correct. Only a sustainably efficient supplier industry is able to align and transform mobility to the new challenges. This also includes the latest combustion technologies, which are also used in hybrid e-vehicles. These can contribute to a significant improvement in emissions and get the supply chains going again. Only a strong domestic supplier industry guarantees maximum security of supply with a minimal CO2 footprint thanks to short transport routes. With demand stimulated in this way, it is possible to continue investing large sums in the research and transformation of new technologies and at the same time to maintain the infrastructure of medium-sized suppliers necessary for Germany as a location.

Source: ArGez