A current special survey by the ifo institute in Munich showed that German industry increased its competitiveness more than the EU as a whole. In particular in comparison with France and Italy German companies acquired a competitive edge. The ifo experts believe that one of the main reasons for this development may be the fact that German companies reduced costs over a much longer period of time and more consistently than companies in other European countries.
Thus, there were numerous relocations of wage-intensive activities to low-wage countries, in particular to China and Eastern Europe. Furthermore, in recent years there were relatively moderate price and wage increases in Germany which also contributed to reducing costs.
The fact that the production in Germany was adapted such as to come up with product ranges which are successful in the long run, provided German industrial companies with a competitive edge. In Italy, for instance, this adaptation took place much more slowly for example in the textile and footwear industry. As a consequence, Italy suffers much more than Germany from imports of prefabricated goods from low-wage countries.
Over recent years in Germany in particular vehicle manufacturing and the clothing industry have strengthened their respective competitive position most successfully. Through specialization, innovation as well as relocation to low-wage countries, German garment producers were able to conquer foreign markets.
On behalf of the European Commission there are 4 surveys each year in the EU member states (in January, April, July and October) in the course of which industrial companies are interviewed on how the competitiveness of their products changed. In Germany this survey is conducted by the ifo institute. 