Insights

German manufacturers are now focussing on their supply chains in China. Supplier development programmes, which are common in Germany, are becoming more prominent in the Chinese market. Companies react to increasing production costs, greater competitive pressure and price cuts, which are demanded from the Chinese government. German industry sees tremendous scope for improvement at their suppliers: Productivity in Chinese factories can be increased by more than a third, whilst scrap and lead times can be halved – which will allow to achieve high cost savings. This is the outcome of a market analysis by Staufen, a consultancy company.

The “Year of Innovation 2015” proclaimed by Germany and China is in danger of failing. 62 per cent of German business representatives still lack confidence to undertake future development work with Chinese partners. By way of comparison: Not even one in ten cite such a lack of confidence with respect to partners from the European Union. That was revealed by a study conducted by management consultancy firm Staufen and Chinaforum Bayern e.V. For the “China Poll”, 150 companies in Germany were interviewed.

While World Cup euphoria is likely to drown international criticism of Brazil in the weeks to come, industrial companies in the country itself are not given any respite. Subsidiaries of Western parent companies also feel the pressure: the domestic economy, isolated by politics, is limping, investments in machine parks are delayed, personnel costs are going through the roof. As a consequence, companies’ productivity is on a sharp decline.

According to a study by the “brand eins” business magazine, Staufen AG is one of the best consultancies in Germany in the industries and areas that it deals with. For example, Staufen AG with its base in Köngen near Stuttgart was ranked second in the “Mechanical and Plant Engineering” sector. In operations management, Staufen AG was also ranked among the top two.

For more than 60 percent of young Brazilians, opportunities for professional advancement are the most important criterion in their choice of employer. In China, too, almost one in two adults (48 percent) attach greatest importance to lucrative career opportunities. But the situation is quite different in security-focused Germany: Only a quarter named career opportunities as the most important selection criterion in their search for an employer.