In 2021 alone, Germany exported products worth $2.02 trillion. Among the country’s largest exported goods are machinery products. Not only so, but Germany holds 10.44% of the global market share in the sector (Atlas of Economic Complexity and find Germany). This remarkable export performance reflects the nation’s robust machinery sector and diverse industries.
The history of Germany’s machinery sector can be traced back to the Industrial Revolution. Although Germany lagged behind many countries in Europe, it quickly caught up as it was rich in natural resources such as coal and iron. These discoveries were transformative as they were used in infrastructure and construction to industrialize the country and shifted Germans away from an agrarian society. Furthermore, as Germans migrated to cities for work and railways connected different regions and industries, the country saw a huge economic boom and innovation. For example, Germany became the leading producer of steel in Europe less than a decade after steel mills were introduced in the country. Meanwhile, the railways allowed for trade in Europe. Overall, the effects of the Industrial Revolution contributed to a middle-class group and laid the groundwork for the modern machinery sector.
Germany’s prominence in the export economy can be attributed to many factors. First, Germany’s participation in the EU since 1958 allowed for a common currency and a smoother trade. Second, European trade agreements formed economic interdependence as a form of preventative measures against another war supported German’s economic growth and diplomatic relationships. Finally, the diversification of its machinery portfolio to include automobiles, electronics, household appliances, and more has allowed the country to tap into different markets and reach an international audience. The strong focus on machinery exports also contributes to Germany’s trade surplus and global demand for its goods. Jobs in the manufacturing industry continue to be a significant source of employment for people, and the country provides vocational education to train skilled workers. It is needless to say that the machinery sector has been Germany’s catalyst for recovery and is constantly adapting to the changing global dynamics.
