Can Expensive Oil Germany Really Help?

Vorwerk Chief starts debate on relocation of production abroad Bonn/Wuppertal at first glance seems the statement implausible and cynical. Expensive oil can help Germany”, said Peter Oberegger, Chief of the Wuppertal of company Vorwerk. Some people will rub their puzzled eyes. Because higher gasoline prices mean that inflation leaves nothing of wage increases to people. “Oberegger but further thought and says: even the high labour costs in Germany no longer outweigh the costs for the logistics, when a product must be returned from Asia to Europe.” Thus, high energy prices could lead to a renaissance of the business location Germany. It is true that the increased fuel prices an important competitive advantage of Asian countries at least in the short term is eliminated.

However, I see the situation is less optimistic than Mr Oberegger. Finally, a couple of additional factors in the calculus must be considered. Rising Energy costs curb the consumer demand of citizens and lead to inflationary trends in connection with higher food prices. We are also dependent on that our products to other countries are shipped, driven or flown as a so-called export world champion of”, so Marc Emde of KCP executives in Cologne. The Vorwerk Chief expresses for the business location Germany, finds the consent of Edmonds, who, however, warns: indeed we have much better trained professionals than in Asia or Eastern Europe in some areas.

But here, too, I see dangers. In certain sectors, such as engineers, we already suffering a lack of suitable candidates”, so the staff expert. Therefore his company opened a representative office in Cracow sometime ago, directly in the Polish market to operate and Polish engineers with good English to German companies give… . The Vorwerk Chief of recent can feel confirmed Economic news. The Steiff company wants to be henceforth no longer produce his stuffed animals in China, because there quality problems have occurred. Who goes only for cost reasons abroad and not sufficiently prepared this step will come back eventually frustrated”, said Edmonds. Nevertheless, Germany will lose annually up to 74,000 jobs through relocation. You should not demonize also this, so the Chief of KCP. Our country is a big winner of the globalization. Insular national economies have no future. The return of Teddy bears to Germany is so far no indication that this example will make school now en masse.” By Alexander Walker