Benefits for freight forwarders and transport companies
Share of turnover and potential in the industrial sectors
Along with many other analyses, SCI Verkehr GmbH carried out a survey on this issue on behalf of the Ministry of Economics of Baden-Württemberg at the start of 2008.
View of a high-bay storage facility holding packages.
The survey results of SCI GmbH shown below remain valid. There are certain branches of the economy which make use of the services and transport offerings provided by the logistics sector. In Baden-Württemberg, there is a large amount of potential for working with these industries.
Baden-Württemberg is one of the core industrial states in Germany. In particular, Baden-Württemberg leads in the fields of automotive construction, mechanical engineering and electrical engineering. Furthermore, Baden-Württemberg is also strong in the fields of metal, chemicals/pharmaceuticals, the paper, publishing and printing industry and in the food industry.
Share of turnover in 2006 - Industrial sectors in Baden-Württemberg
| Industry | Share of turnover |
|---|---|
| Automotive construction | 29.0 % |
| Mechanical engineering | 20.0 % |
| Electrical industry | 13.8 % |
| Metals | 9.0 % |
| Chemical industry | 5.8 % |
| Paper, publishing and printing | 5.1 % |
| Food / tobacco industry | 5.0 % |
| Rubber / plastics | 3.8 % |
| Textiles / clothing | 1.8 % |
| Glass, ceramics, stone, earth | 1.4 % |
| Others | 5.5 % |
Potential of the mechanical engineering sector
The mechanical engineering sector employs around 265,000 workers, making it the largest industrial sector in Baden-Württemberg in terms of people employed. With a turnover of approximately €52 billion, Baden-Württemberg accounts for almost one third of the entire German mechanical engineering sector. The mechanical engineering industry is strongly characterized by its medium-sized and/or family-owned businesses. The mechanical engineering industry is also notable for its high level of exports. In addition, the principle of the division of labor is a very important factor in mechanical engineering. The provision of replacement parts necessitates comprehensive storage facilities. As a result, the logistics sector provides important support to the mechanical engineering industry. Whereas transport activities are largely subcontracted out to logistics companies and road haulage companies, companies often still keep their storage and goods management activities in-house. In the medium-term, the outsourcing of these activities provides a large potential for optimization both for the mechanical engineering industry and logistics service providers.
Potential of the automotive construction sector
Loading passenger cars into an aircraft on a conveyor
The official statistics for automotive construction in Baden-Württemberg list over 370 companies with roughly 240,000 workers and an annual turnover of over €74 billion. This is predominantly made up of the automotive industry and its suppliers. This sector is one of the key industries in the state of Baden-Württemberg and will remain so in the future. With over 100 years of automotive tradition in the state, a lively infrastructure has established itself consisting of more than 1000 automotive suppliers in a very wide range of sectors. The automotive manufacturing industry in Baden-Württemberg acts as a driver for innovation in a wide range of related sectors. One of these sectors is logistics sector. The automotive industry has acted as an important motor for innovation in this sector through its introduction of logistical concepts such as "Just in Time" and "Just in Sequence". The division of labor between suppliers and manufacturers is extremely advanced in this industry. As a result, the logistical requirements are particularly complicated. Furthermore, logistics companies in this industry are integrated in many of the value-adding stages - from the consolidation of parts through to pre-production of individual components. Commitment and innovative ideas can ensure a long-term partnership with this industry.
Potential of the electronics and electrical engineering industry
Along with mechanical engineering and automotive construction, the electrical engineering and electronics industry of Baden-Württemberg is one of the three largest industrial sectors of the state with 193,000 workers and a turnover of €37 billion. Baden-Württemberg accounts for a healthy fifth of the turnover of the entire German electrical engineering and electronics industry. Baden-Württemberg is one of the most important regional locations for the German electrical engineering industry. Due to its high level of exports and scattered structure of suppliers, the electrical engineering industry is also heavily dependent on logistical processes. All of the companies in this sector outsource logistical functions above and beyond their transport requirements.
Potential of the chemical industry
The products of the chemical industry are an essential part of our daily lives. Accordingly, the chemical industry is an important sector of the economy - as a manufacturer of raw materials or a supplier to many industrial sectors. With nearly 500 companies and around 100,000 workers employed, Baden-Württemberg is one of the leading regional locations for the chemical industry in Germany. With a share of overall turnover of roughly 10%, the chemical industry is one of the three largest sectors of manufacturing in Baden-Württemberg. Due to its raw material requirements and the structure of its end products (many liquid goods), the chemical industry is a particularly important partner of the inland shipping and railway industries. The logistics companies involved in this sector are generally highly specialized. The ratio of outsourcing in the chemical industry is high, not least because the chemical corporations have developed their logistics departments into logistics companies.
Potential of the pharmaceutical sector
View of a high-bay storage facility of DHL.
The pharmaceutical sector is the largest subsector within the chemical industry of Baden-Württemberg: 138 pharmaceutical manufacturers employing almost 40,000 workers make Baden-Württemberg the top location in Germany. The spectrum ranges from pharmaceutical research companies through to medium-sized pharmaceutical manufacturers and manufacturers of important generic drugs. One special area of pharmaceutical production in Baden-Württemberg is the production and distribution of pharmaceuticals for special therapeutic treatments e.g. homeopathy and pharmaceuticals with plant-based active substances. Baden-Württemberg is the leading location in Europe in this sector. The pharmaceutical industry is a particularly important customer for companies specialized in small-scale distribution.
Potential of the food industry
Another important industry, including the logistics sector, is the food industry. In this sector, Baden-Württemberg has 822 companies employing 63,000 people. Well-known brands such as "Ritter Sport" and "Hengstenberg" distribute their products far beyond Baden-Württemberg and require refined logistical systems. Baden-Württemberg leads the whole of Germany with its pasta industry. However, even the many small companies in the food industry which operate on a regional basis have demanding logistical requirements due to the perishable nature of their products. Many companies operating in the fresh food sector still perform their logistics services themselves. This is a potential market which could be exploited.