industry

Die industrie

Manufacturing is easily the largest sector of the German economy.  Approximately 40% of the population is involved in manufacturing in one form or another.  The principal industries are the production of machine tools and parts, automotive production, electrical engineering, iron and steel, chemical production, and optical engineering.  Together, these industries account for no less than 30% of the German GDP.

Americans may find it surprising to know that German industry is led not by internationally famous corporations such as Siemens or Daimler-Chrysler; instead, small and medium-sized companies tend to lead the industrial sector.  These companies that are usually smaller than 500 employees are known as the Mittelstand and just as much a driving force in politics as they are in the economy.

The industrial sector of Germany, like in the United States, is largely dependent upon imported forms of energy.  About 40% of energy consumption comes from petroleum products, of which Germany has no large natural resources.  Most of Germany's petroleum products are imported from Norway.  Coal provides another 30% of energy and is supplied largely by the natural deposits found in the Ruhr Valley.  Nuclear energy, which provides 28% of electricity, is becoming increasingly controversial and will have limited growth in the future due to a large push by the Green Party to limit the threat of nuclear risks.