Enormous scale of the German tech

Apart from the enormous scale of the
German tech industry, Dutch suppliers can
also benefit from developments in the supply
chain. Closer inspection of this dimension
reveals that a distinction has to be made
between the automotive chain, on the one
hand, and the electrical and mechanical
engineering industries, on the other. We will
first evaluate the automotive sector, which
has a relatively small number of large OEMs.
These companies rely on various large
tier-1 suppliers, which is part of the reason
why procurement costs are relatively high
in relation to turnover (69%).

The wage cost component (15%) is relatively small because
of the partial automation of the production
and assembly process, the large production
runs and the high level of outsourcing.