Economic success for local authorities

Logistics are also important at a local level

The economic success of towns/cities and communities, rural districts and entire regions of Baden-Württemberg is to some extent dependent on the logistical infrastructure available locally. This is a result of the causes and effects listed below:

A pillar of the economy

Many decision-makers in the political arena of Baden-Württemberg are aware of the importance of logistics to other industries and in terms of safeguarding jobs. If a locality is equipped with an efficient basic logistical infrastructure, this has a positive effect on economic development in the entire region and state. Logistics is thus an important pillar of the economy and an important competitive factor.

Strategic locational advantage

In the logistics sector, a certain proximity to the market and to customers is always essential. As a result, the logistics industry has the strategic advantage in terms of location-related political decision-making that logistical activities are either very difficult or impossible to outsource to a foreign country - in contrast to industrial activities. When a manufacturing company decides to outsource logistical activities to a local logistics service provider, this secures both the local production jobs and the jobs at the logistics service provider on a long-term basis.
With its important service-related and integrating functions, the logistics sector has become an important factor in the overall attractiveness of a location, is of decisive importance for the competitiveness of the regional economy across all industries and offers an increasing number of jobs. The jobs available in the industry cover all areas, from manual workers through to university graduates.
Without a sophisticated logistics sector, industry, commerce, the service-based economy and public administration could not operate properly.

Keeping manufacturing jobs in the region

The mechanical engineering, automotive and chemical industries are very strong in Baden-Württemberg and these industries are especially dependent on logistical processes. These industries, in particular, have developed global delivery and procurement structures over the past decades. The far-reaching production structures of industry in Baden-Württemberg could not be maintained without logistics. As a service sector supporting industry and commerce, logistics is and remains of particular importance to Baden-Württemberg.
Accordingly, logistics is an important economic factor in the state. Baden-Württemberg can only maintain its position as one of the world's leading exporters if the right logistical infrastructure is in place.

Opportunities for growth at an established site

Logistics can also help an industrial company to expand at an established site by allowing the company's logistics requirements to be outsourced to an external logistics center from an " old " industrial production site. There are a wide range of options for implementing this type of change - ranging from an in-house managed logistics center through to complete outsourcing to an external company. Logistics facilities thus make an active contribution to keeping these companies in a particular region.

Sharing in value creation

The communities and regions of Baden-Württemberg are able to share in the success of the economy when distribution and logistics centers catering for supraregional, German or even Europe-wide activities are located in the area. This means that the value added by the logistics process to the products passing through the logistical chain can be retained and consolidated within the state. Overall, this contributes to improving the general economic strength of the regions of Baden-Württemberg.

Outsourcing potential for the logistics sector

In general, specialized logistics service providers are increasingly being used by industrial and commercial companies to handle procurement, transport and logistics tasks.

"Outsourcing of services 2007" study by Chamber of Commerce (IHK)

There is still a large potential for outsourcing, especially with respect to sophisticated services encompassing more than simple transport.

The "Outsourcing of services 2007" study by the Chamber of Commerce of Baden-Württemberg (IHK) obtained the following results:

The potential for outsourcing growth is expected to increase for sophisticated services.

The study also found that regional suppliers of logistical services are always preferred when there is a need for sophisticated services with high quality requirements and where specific expertise and a high level of cooperation/intensive partnership is required.

The service "Transport and logistics" in its many different facets is carried out in partnership with an external service provider by 55% of the companies surveyed. 24% indicated that they have handed over full responsibility for this area to a service provider and 21% of the companies surveyed in this study perform all of their logistical activities in-house.

The nationwide study "Top 100 in logistics" also found that Baden-Württemberg has an above average potential for the outsourcing of services in logistics sector. There is a potential for rationalization of the freight forwarding sector, which is characterized by medium-sized and family-owned businesses, and also development opportunities for medium-sized transport and haulage companies.

Companies have to take advantage of this growth in the market. Companies can share in the ongoing boom in outsourcing if they supply professional and highly-specialized services. This conclusion is also supported by a study conducted by the IKB-Bank that was released in December 2007. The most important message of the study was that specialized medium-sized businesses have good prospects - providers of value added services are much less likely to go bankrupt than companies which offer transport services only.