ReleaseWire Connect

Higher rates of turnover and spikes in consumer demand have seen manufacturing organisations hiring at record rates in recent months. The necessity of building a resilient talent pipeline in order to keep filling roles in thriving businesses has become increasingly obvious. This has seen many manufacturing enterprises reportedly using many more diverse methods when it comes to recruitment, such as utilising text recruiting because around 70% of manufacturing job seekers said they prefer to receive a text during the hiring process. Also vital is making commitments to increased diversity, not just due to the benefits this can have in accessing a wider talent pool but also because 40% of manufacturing candidates have enquired about an employer's diversity efforts during a job interview. With around a third of the manufacturing workforce aged 55 or older there are clear incentives for manufacturing organisations in diversifying recruitment approaches in order to find the necessary talent to fill vacant roles.

Chip and component shortages for the auto industry have been big news for some time now. However, it's not just in the production of new cars where these issues are having an impact. Many production lines have been hit by these challenges - including the likes of Mercedes-Benz and Volkswagen - and the result has been far fewer cars coming off the assembly line. A consequence of this emerged earlier this year when prices in Germany's used car market jumped 27% from the year before. The auto market in Germany is the largest in Europe and generally reflective of wider trends. The average cost of a new car is now EUR 31,801, which is the highest on record. Although many manufacturers are not suffering extensively due to these supply chain problems (Mercedes saw an 8% bump in first quarter revenues this year), it is going to put a lot of pressure on consumers who are already struggling with inflation.

The container crisis has had a huge impact on supply chains, especially for large organisations like Lidl. Now, the retailer has taken steps to help ensure the security of its future deliveries by launching its own shipping line. According to a recent report, Lidl intends to buy its own container ships so that the retailer will no longer be subject to the delays and issues that have resulted from the container crisis worldwide. Lidl is the fifth largest retailer in the world and operates hypermarkets in Europe. The German discount retailer is now in talks with shipping companies where it will be able to use its own sea freight capabilities, when it has them. Once the new operation is established for Lidl, it will be used for transportation and delivery of goods, including cargo transportation and export cargo handling services. Lidl is the latest major player to take this step to secure its supply chain but is unlikely to be the last.

The German manufacturing sector has had a positive start to the year, according to the latest figures. There is clearly still pressure on supply chains but many manufacturers have reported that this has eased somewhat, with new orders and an uptick in output. A softening of cost inflation to a nine-month low has also made a big difference to the way that manufacturers in Germany now feel about the coming months. Confidence among goods producers has improved in terms of the year ahead and many are now much more positive. In January of this year manufacturing PMI ticked up for the first time in six months, registering a five-month high. While supply-side progress still remains slow - and cost pressures are still a problem - there is a lot for the German manufacturing sector to be positive about when it comes to growth momentum so far this year.

There is no doubt that the market for electric vehicles is getting increasingly competitive. High-profile manufacturer, Tesla. has come out swinging in terms of ensuring that it retains, and builds on, its market share. Just a few days after getting a permit from the authorities for its Gigafactory in Berlin, Tesla launched a recruitment campaign to find the staff for the huge production site. The Gigafactory has now opened, presumably focusing mostly on the Model Y electric SUV, which Tesla is aiming predominantly at the European market. The Gigafactory is Tesla's first location in Europe and the company describes it as "our most advanced, sustainable and efficient facility yet." The plans for the factory were first announced in 2019 so it has been a long time coming in Tesla terms. It can't come soon enough for the innovative car marker, as many other auto brands are investing in producing new models to try and gain electric vehicle market share, including Volkswagen and Honda.

Last year, supply chain start-ups attracted investment of more than $65 billion as retailers were forced to deal with a whole range of issues, from labour shortages to a lack of raw materials. This figure represents a huge rise on the $38.4 billion invested during 2020. This has resulted in a wave of innovation to industries such as fashion, as new ways to solve old problems, and break new ground in the process, now have to be found. Innovation in the fashion supply chain has covered many different areas of operations but in particular when it comes to shipping and warehouse automation. Technology has a huge role to play in this, from data and analytics through to the use of advanced tech like Artificial Intelligence. It's thanks to the investment made in the supply chain start-ups that are producing this innovation that industries such as fashion can move forward in a more efficient and sustainable way.

Negotiations are currently underway at Intel to expand the chip maker's European presence, including in Germany and Italy. The current Chief Executive Officer is laser-focused on trying to ensure that Intel gets back to its top spot in the chip-making world and these moves are a key part of that plan. An increase in research and development, as well as manufacturing is planned and it plans to open a research and design centre in France as part of this expansion and the main wafer fabrication plant will be built in Germany.

In keeping with many other nations around the world, the German government has now passed a new piece of legislation that is designed to increase transparency up and down the supply chain. The Supply Chain Act (also known as the German Act on Corporate Due Diligence in Supply Chains) will come into force in January next year. Its purpose is to introduce new due diligence obligations on businesses relating to both their direct and indirect suppliers. Those obligations are designed to improve the application of environmental standards and also to help protect human rights.

There has been no shortage of coverage of the supply chain problems that have affected global markets over the past year. However, despite these challenging conditions, German experts actually surpassed pre-pandemic levels towards the end of the year. In October last year, exports were 8.1% up on the same period in 2020 with Germany exporting €121.3 billion-worth of goods in the month. The data showed positive spikes with respect to exports to other EU countries, as well as exports to other locations outside the region, such as China.

Over the past decade the German economy has experienced an impressive boom thanks to the impact of globalisation. However, the pandemic has caused many issues, especially because German businesses now rely on a complex international network of supply chains. That network was once the momentum for growth but, over the past year or so, has proved to be a serious vulnerability. As a result, more than half of German companies doing business abroad are now struggling with supply chains or logistics problems.