According to a new study, labor productivity in mechanical engineering is now below the pre-crisis level of 2009.
"From 2011 to 2015 there was even an absolute decline in labor productivity," states a study conducted by the Mannheim Centre for European Economic Research (ZEW) and the Karlsruhe Fraunhofer Institute for Systems and Innovation Research (ISI). The results of the study were published in the Düsseldorf-based Rheinische Post on Monday.
The fact that digitalization in production does not contribute to productivity gains could contribute to the negative trend. The latest concepts of the digital factory also lead to lower efficiency gains than in other industries. Finally, the increasing share of services and internationalization could be an obstacle to productivity growth.
According to the report, labor productivity in mechanical engineering was still 23 percent above the industrial average in 2000, but by 2015 it was 10 percent below the average for German industry. Competitors from the Netherlands, Austria and Sweden had in the meantime outpaced the German mechanical engineering industry.
The German Engineering Federation (VDMA) told the “Rheinische Post” that there was now a need for action. Productivity gains are "an essential determining factor for sustainable success." This would require investments in technology and new business models. Politicians must also ensure "a good infrastructure and nationwide access to a fast Internet.”
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