Competition is intense
The competition for business from German Original Equipment Manufacturers (OEMs) is intense. German companies that used
to supply only components are moving up in the value chain and increasingly becoming module builders, and ultimately even
system suppliers. This is the role with the greatest added value for a supplier and the position in the chain that a large proportion
of Dutch suppliers aspire to. There is also heavy competition from other neighbouring countries in southern Germany,
More than 40% of Swiss exports to Germany go to Baden-Württemberg, and Bavaria accounts for more than 40% of Austrian exports
to Germany. Besides the shorter distances to southern Germany, these countries have the further advantage of being German-
speaking. The ability to speak German is essential for conducting business successfully with the German tech industry.