vbw – Bavarian Industry Association
2024
In 2023, German companies obtained 53 percent of their intermediate products from EU countries. With a share of nine percent, China remains the most important single procurement market for German industrial companies. However, companies are increasingly aware of the risks associated with over-dependence on individual supplier countries. In addition to efficiency, the resilience of supply chains is therefore becoming increasingly important. By tapping into new procurement markets, companies can minimize the risks in their supply chains.
On behalf of the Bavarian Business Association (vbw), we analyzed potential new procurement markets for German and Bavarian key industries. This provided an update to the previous study from 2023.
The analysis of the global supply of intermediate products shows that there are alternative supplier countries beyond the current German procurement markets in almost all intermediate product categories.
The East Asian region is particularly promising:
Results for the North American procurement markets:
As for the Asian emerging markets,
The current German procurement markets differ considerably in some cases for the individual product groups. Even within a product group, there are very different procurement structures in the individual product categories. This also applies to the potential alternative supplier countries: the countries have often specialized in the production of certain intermediate products, so there is no “single” potential market for a product group.
The study provides fact sheets for nine product groups that offer an initial overview of the new procurement markets that could be available for the individual product categories.
The analysis of the procurement markets focuses on nine product groups that are part of the industrial core of Germany and Bavaria. These industries obtain the majority of their intermediate inputs from abroad and then process them further. Specifically, these are:
For each product group, we use foreign trade data analysis to quantify where the current and where the currently underdeveloped procurement markets are in the individual product categories. In addition, we have used a traffic light system to assess the extent to which these procurement markets pose a geopolitical risk and how good market access is for German companies.
Study (vbw website, in German)
Summary of the previous study (in German)
Project team: Philipp Kreuzer, Johann Weiß
Last update: 29.11.2024
Senior Project Manager
Project Manager
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