German sector is less focused on SMEs
In contrast to the UK, the German sector is less focused on
SMEs, since it generates higher sales per company.
However, lar-
ger does not necessarily mean more successful, particularly in the
technology sector. The sector structure, in conjunction with a weak
British pound, indicates that companies with production sites in
the Ukwill have a competitive advantage at home and abroad in
the near future. Combined with a good offer in segments where
demand is currently high – such as measurement and control sys- tems – they should be well placed – although uncertainty will have
a detrimental effect.
For producers from Germany, the impetus created by the
weakness of the euro compared to various currencies has slack-
ened. This applies particularly to the British pound. Products from
Germany are becoming more expensive in the UK. And the Ukis
as important as a sales market for German exporters of IT equip-
ment, electronic and optical products as France. In 2015, goods
worth EUR 6.2bn were sold to the UK, which corresponds to a
proportion of 6. 4% of global sector exports. Sales in the largest
export category – IT equipment and peripheral devices – are
likely to be negatively affected to an above-average extent by the
shift in the exchange rate. For strong price competition prevails
here too.
Exports of control, measurement, navigation and simi-
lar instruments are likely to be less affected, since these products
are in increasing demand as a result of digitalisation and automa-
tion. Sales to, and competition with British companies have not
become any easier after the Brexit vote.
EU Forecast
euf:ba18.c:13/nws-01