17. March 2016
Bavaria as industry location: An international comparison - Resources
Many highly-developed economies are currently experiencing deindustrialization. In Bavaria, the industry has continued to gain importance over the past years. Over one quarter of the total economic added value is generated by the manufacturing sector, giving Bavaria the fourth-highest share of industry worldwide. This success is owed to the performance and efficiency of Bavarian companies as well as to the quality of Bavaria as an industry location.
A study conducted by IW Consult GmbH on behalf of The Bavarian Industry Association (vbw) compared the quality of 45 countries in terms of what they have to offer as a location for industrial businesses. Bavaria came in an overall second place. The USA reached seventh place. The study identified six categories that inform the investment decisions of industrial businesses: state, infrastructure, knowledge, resources, costs, market.
Resources: USA in second place, Bavaria in tenth
The category “resources” assesses the endowment with natural resources, energy efficiency and capital market performance of a country. Being rich in raw materials, the USA came in second place in this category, right behind Australia. Bavaria reached tenth place, mainly thanks to its high-performing capital market. Capital market performance was also one of Americas’ strengths in this category. Germany came in two places behind Bavaria as it ranked worse in the subcategory “energy efficiency”. China, Bavaria’s main competitor, only ranked thirtieth due to its weakness in capital market performance.
In upcoming issues we will provide details about results in further sub-categories.
Click here to read the complete study (German only).