Location factors for the logistics sector

We have illustrated that the short-term cyclical outlook for the logistics sector in
Germany is muted. However, the sector is benefiting from many favourable
location factors, such as Germany’s position in the centre of Europe. German
companies stand to benefit from (even) closer ties with new EU countries and
other eastern European nations.

As could be expected, competitive and cost
pressure in the sector have also intensified in the wake of the EU’s eastward
expansion and the liberalisation of the European transport market.
In addition to its central location in Europe, Germany’s economic openness is
also having a positive effect on the logistics sector. Total imports and exports
account for a larger share of GDP in Germany than in any other major European
country (2015: 69.4%). Germany’s polycentric economic structure is another
positive location factor. 62 of the 100 wealthiest European regions are located in
Germany.

Compared to other major countries, such as France or the United
Kingdom, Germany has many economically strong regions that are closely
intertwined in terms of the division of labour. As a result, the second-tier
metropolitan regions (the group of the country’s largest cities excluding the
capital, such as the Ruhr metropolitan region, Hamburg, Munich, Stuttgart,
Frankfurt am Main, Cologne, Düsseldorf) play a more important role in the
overall economy than in France or the UK. These regions generate around 30%
of Germany’s GDP and are home to approximately one-quarter of the
population , resulting in increased demand for logistics services. Germany’s
degree of industrialisation is another key factor. Industry is one of the logistics
sector’s most important clients.

In Germany, the manufacturing sector
accounted for 22.8% of the country’s total gross value added in 2015 – seven
percentage points higher than the EU average