‘Made in Germany’ tag still best selling point

HAMBURG, Germany – There appears to be a growing sense of optimism that the German economy will finally make its move out of the doldrums of recent years, if the attendance in this year’s Hannover Fair is any indication. There are a thousand more exhibitors this year, with a strong participation from foreign companies trying to break into the German manufacturing market.

Over six thousand exhibitors, practically all of them selling to manufacturers rather than direct consumers, have covered every inch of 24 exhibition halls, all 205,100 square meters of space. Eleven separate but interrelated trade fairs constitute this year’s Hannover Fair to show what its organizers say is "the complete industrial wealth creation process, and across a abroad spectrum of industries."

Everything from factory automation to micro technology and energy and areas of interest to manufacturers are represented at the fair. The fact that about half the exhibitors are foreign, speaks loads about confidence returning to foreign vendors about the near term direction of the German economy. There is a sense of optimism, largely because German industry is well aware that "Made in Germany" remains their strongest selling point to the world market. They are hopeful the German economy will return to health shortly.

But is the German economy on its way out of intensive care? Don’t ask any one of Germany’s growing army of unemployed. The latest March statistics show a sharp increase in the number of unemployed to five million from the already worrisome four million. To be fair however, the large uptick could have been a result of a new rule requiring all Germans on welfare deemed capable of working to register as unemployed or lose his benefits. Statisticians say at least 380,000 new people were added to the jobless list by this new rule alone in the first three months of this year.

The present government is working hard to mitigate the negative political impact of an economy losing all those jobs. The prime minister has met with the opposition to reach a modus vivendi on job creation. A quick agreement has been reached to cut corporate income tax rate to 19 percent from 25 percent. But will that encourage companies to hire more people and cut the jobless rate?

Probably not... if what’s keeping German companies from hiring more is the combination of excessive job protection and sky high non-wage costs. That’s the much talked about social compact that pushed up the quality of life of ordinary German workers that helped produce prosperity in the days before globalization and outsourcing.

Many Germans don’t know what to feel about globalization. On the one hand, thanks to globalization, German companies are able to sell a lot of goods to the world market. The level of Germany’s exports has remained high through all their domestic problems with their economy. On the other hand, they could see jobs evaporate overseas because investors are protesting the high cost of hiring German labor by moving elsewhere. One university professor told our group of visiting journalists that even trained scientists have to go abroad to find jobs they cannot get at home. There are too many scientists, he said, and not enough openings in the academe or in business and industry.

And so it seems, globalization will be one big challenge for the Germans. From what I have seen in a week of going around the country, I have no doubt they will eventually get their act together and re-emerge as a world economic superpower. There is something in the character and the attitudes of today’s Germans that I feel, bodes well for them. Let me explain why I think so, with a story, more precisely, the story of how they renovated the Reichstag or parliament building.

When you see the Reichstag, a few steps from the old Berlin wall, you see a massive historic structure, not unlike Manila’s Post Office building beside the Pasig River. Built in 1894 by Kaiser Wilhelm I and finished some years later by Wilhelm II, the building was hardly populated by true representatives of the people as we understand the concept of parliaments today. The building had been abandoned for a long time until finally, a re-united Germany moved its capital back to Berlin from Bonn. It needed a massive remodeling. I already wrote about Sir Norman Foster, the Briton who designed the renovated Reichstag. Why should a foreigner work on a most symbolic and sensitive project? Simply because he won an international competition for the design. That tells me that today’s Germans value talent and when it really matters, they don’t mind working with a talented foreigner to get a work done and done well.

Walking through the Reichstag, it was plain to see the impressive accomplishment of the Briton. The Reichstag building looks old but commanding. It obviously looks like a historic relic from the outside. But from the inside, it looks totally modern and stylish. The only hint from the outside that there is something very modern and interesting inside, is its new see-through dome.

I thought Sir Norman captured the essence of the German spirit today – one that is determined never to forget the lessons of the past without losing its pride for their history as a people, outside of the dark years under the Nazis. On the other hand, by modernizing the building from the inside, the Germans are saying they are very much of this time and age and cutting edge too. The glass dome of Sir Norman was not only modern in looks but is said to actually be energy efficient as well.

In other words, the Germans showed they are not afraid to hire a foreigner if that foreigner happens to be the best for the job. That’s the kind of attitude that should help them tackle globalization with more ease and grace than the current debates on it would suggest. The new German spirit is not shackled by old style nationalism. The important thing is to get the job done by the best man for the job.

In true spirit of globalization, the Germans are not afraid to use imported components of their most symbolic building. I remember seeing the manufacturer’s name plate on the elevator in the Reichstag and it sounds more Japanese than German... as in Fuji.

Then, I wrote last week about Sir Norman’s comments about Germany’s current version of the eagle as its national symbol. He called it a fat hen and from what I was told, the attitude of most Germans was, Sir Norman may be wrong to say that but he was nevertheless entitled to his opinion. Such open mindedness and practical defense of a basic freedom is impressive in these days of narrow nationalism and religious intolerance and fundamentalism. If such criticism was made of by any foreigner of any of our national symbols, we would not only run him out of town, we would likely lynch him before he gets to run.

In other words, I found democracy thriving well in Germany today and given the Germans’ natural talents, historical successes and reputation for quality products, I think they will more than overcome their present difficulties quicker than even they might think possible. The "Made in Germany" tag is as valuable now as it had ever been in the past. That’s Germany’s best kept secret for recovery.

Now, here’s something from Dr. Ernie E

Party Pooper

A cocktail party is an affair where a mans gets stiff, a woman gets tight, and they return home to find that neither is either.

You don’t stop laughing because you grow old. You grow old because you stopped laughing.

Always laugh when you can. It is cheap medicine. – Lord Byron

"A cheerful heart is good medicine..." (Prov 17:22a)

"I realize that humor isn’t for everyone. It’s only for people who want to have fun, enjoy life, and feel alive." – Anne Wilson Schaef

To the world, you may be one person; but to one person, you may be the world!!

Boo Chanco’s e-mail address is [email protected]