The industry report gives a detailed overview of Bavarian industry, its development as well as the sectoral, size-specific and area profile. Beside information about the manufacturing industry, the documentation contains analyses on the 24 largest branches of industry in Bavaria as well as the construction industry, further individual interpretations of industry in the Bavarian administrative regions and the innovation activities of Bavarian industry.
Beside general information on the structural importance of the manufacturing industry in Bavaria, the industry report contains, for all branches and administrative regions, descriptive presentations and interpretations of selected economic data, providing an extensive overview of the major developments in Bavarian industry for the year 2004.
The data for the analysis of the industry branches and the administrative regions predominantly derive from the monthly and annual statistical reports on the Bavarian Manufacturing Industry in 2004 (and 2005), as well as on the Production of the Bavarian Manufacturing Industry in 2004 (and 2005) of the Bavarian State Office of Statistics and Data Processing. For the examination of innovation activities of Bavarian companies, the data from the Ifo Innovation Survey are used. The Ifo Institute has conducted a standardised, annual survey of innovation activities of enterprises in Germany and their determining factors since 1979.
After a restrained start into the year 2004, the economic situation of the Bavarian manufacturing industry gradually gained momentum. As was already indicated in the business expectations of the Ifo Business Climate for Bavaria in mid-2004, the economic pick-up levelled off in the beginning of 2005, but has been gaining momentum again since mid-2005. Positive economic impulses still result from the prosperous export business but also gradually from an incipient pick-up on the domestic market.
The total revenue of the Bavarian manufacturing industry increased by 7.6% (Germany 5.6%), whereas the number of employees decreased by 1.4% (Germany -1.9%). Based on an increased worldwide demand for commodities, the positive revenue and employment trend in petroleum processing and metal industry lay above average. In addition the road vehicle, the rubber and plastic industry and food and beverages were among the few industries in 2004 where also the employment trend markedly gained momentum beside a strong development in revenue. At the lower end of the employment development scale in the year 2004 there were again the clothing and textile industry as well as the ceramics industry besides the railed vehicle industry, whose results strongly suffered from the intense competition with low-wage countries and from measures of reorganisation.
During the first months of the current year the companies of the Bavarian manufacturing industry were able to further increase their revenues, the growth rates nevertheless lay noticeably below the level of the previous year. The cumulative total revenue of the first half of the year 2005 topped the respective value for the same period of the previous year by 3.2%, which constitutes a significant cool down of the economic situation in the manufacturing industry. Ongoing positive impulses however came in particular from the engineering sector, the chemicals industry, metal production and machining as well as from the rubber and plastic industry. The high gains in revenue in 2004 also had no impact on the employment side in the year 2005 thus far. The number of employees in the manufacturing industry decreased by 1.1% until the end of June. Nevertheless, from the second half of the year 2005 the economic situation of the Bavarian manufacturing industry should gradually gain momentum again, measured in terms of revenue development. That is what the Ifo Business Climate results indicate for Bavaria.
Industriebericht Bayern 2005; publisher: Bavarian Ministry of State for the Economy, Infrastructure, Traffic and Technology
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