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Still in Europe’s driving-seat


When Germany sneezes, the rest of Europe catches a cold. But the supreme EU industrial power is in robust long-term health, as many freight operators will testify.


The powerhouse falters


By its own supremely high standards, Germany’s economy has put in a poor performance in


the last few Figures published in late months.


Manufacturing has been struggling of late, with industrial production falling away in the early months of the year and orders also declining. The country’s gross domestic


product (GDP) reduced in the third quarter of 2018 by 0.2% and was static subsequently.


June suggested that the country’s manufacturing sector had weakened recently and economists have still not ruled- out a full-blown recession – bad news, not only for Germany itself, but the rest of Europe too. The European Commission


in its economic report described Germany’s performance in late 2018 as “a near recession” although it did see a “tangible”


The German car industry goes global


Germany’s car industry is becoming steadily more global, says Sandro Knecht, chief commercial offi cer, Imperial Logistics International, one of the country’s largest operators in the sector. Automotive manufacturing in many countries, including


Germany, is becoming more diversifi ed in terms of sourcing of components. Knecht, says: “Sometimes this


is because a manufacturer has, for example, a central engine plant serving several of its production lines across Europe. But it can also be because the car


rebound during the fi rst quarter of this year. However, it too warned that prospects for the rest of the year look less bright and the forecast for quarterly real GDP growth has been revised down compared to spring. In particular, the second quarter seems to have seen a decline in economic activity. However, these fi gures need to


be put into perspective. The jobs and employment market is still


builder draws in components


such as road wheels, dashboards and transmissions from external suppliers based around the world. This means we are shipping components (mostly by road) both ways between Germany and the UK and Poland, and between Holland and the UK and Germany; and providing or managing warehousing at a number of locations, where stock can be held, order-picked or sequenced, and despatched.”


one of the strongest in the world. And it should also be noted that the services sector has been doing rather better than manufacturing, which has indeed been going through a diffi cult period lately. One reason for the sector’s


relatively weak showing is the wider world and European economy. German manufacturing lives by its exports, and if the rest of the world is struggling economically, the country’s manufacturing exporters will suff er too. The recent troubles of the


Imperial Logistics has three


automotive logistics locations in the UK where it handles warehousing, sequencing and other added-value services – as well as basing vehicles there. It is also the largest automotive


logistics operator in Germany, with 2,800 staff based at


14


locations, working for a number of major vehicle manufacturers and components suppliers. Its


current services include collections and deliveries


car industry are also worrying, given its importance to the entire economy, with the ‘Dieselgate’ scandal and uncertainty over the future of internal combustion engine versus battery electric vehicles – and the high cost of changing over production lines to the new technology. President Trump’s threatened


tariff s, while now unlikely to aff ect


Europe directly, have


however done little to lighten the mood music for global trade. As


the European Commission pointed out, German exporters


between component suppliers and


car assembly plants,


spare parts warehousing and preparation for international shipping and hazardous materials warehousing, packing and shipping. Knecht says the company’s


strategy is to expand organically as well as by acquisition: “In our German automotive business, this means winning new customers; increasing the scope of our service provision for


are concerned that any escalation in protectionism would weigh on business confi dence across the globe and dampen global investment demand. Brexit, too, is a source of


concern, given the size of the UK market – and, to some extent, its importance as a supplier of


components to German


manufacturers. However, fears of a No Deal Brexit did lead to a short-term surge in exports from Germany to the UK as businesses built up stocks in anticipation of problems ahead.


existing customers; and opening up at new locations where customers require our support or where we can further leverage our capabilities. Two recent examples of this


are the opening of the new packaging facility for Volkswagen Group at


JadeWeser deepsea


port and the imminent opening of a new special materials warehouse for another car maker in Bavaria.” At present,


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