At this point it seems inevitable that most of Europe is going to experience severe economic struggles.
Manufacturing in Germany is dying, making anything which is cost competitive is impossible and the measures trying to fix it are miniscule compared to the magnitude of the problem.
As the article goes into, Cherry had their lunch eaten because they barely made any attempt to innovate for decades. They coasted on their patents until they expired and then they were eaten alive, not just by cheaper alternatives, but by superior quality alternatives too. They were doomed regardless of where they were based.
> Manufacturing in Germany is dying
no surprise given the high taxes, extreme energy prices, massive bureaucracy, ridiculous regulations, work-hating employees and extremely business-hostile culture
Cost is not everything. Quality matters a lot.
If things are of higher quality, higher cost is acceptable to many.
As a trivial example, talking about a ca. 5 EUR purchase here, I bought a German-made pencil sharpener (Möbius-Ruppert nr. 0603 "Vertex").
It's basically a small metallic block (brass) with two holes with blades attached. It is surprisingly heavy and while it may sound strange, the sharpening result is simply excellent. (I bought some Japanese-made pencils to pair with it)
Chinese sharpeners can be had for under 0.5 EUR at best, they can be very cheap.
However, I had Chinese sharpeners and they actually were the reason I ended up buying a German one. Unless I lose the German sharpener, I will never need to buy another.
Deindustrialization isn't fun. Don't worry, some of us have been down that road.
Sincerely, the American Rust Belt
Just stop trading manufactured products with Asia.
Their people are still transitioning from agrarian hardship to urban factory life, and there seems to be a zeal that comes with this transition, a willingness to work hard for what here today would be considered little.
Good for them. But in Europe we had this transition already and we became disillusioned with the lifestyle tradeoffs.
Having our people do nothing productive while all of our life objects are made by others is not sustainable and it is awful for the morale of our peoples. It needs to be stopped.
Germany doesn’t compete in cheap manufacturing, they compete in highly precise manufacturing. There are bunch of things that are only manufactured in Germany. You don’t hear those companies that much because they are not public but they are well known by the people who work in specific industries. When you combine them, they are way bigger than the German companies you hear everyday which are laying off people or closing factories.
For some reason, every time Europe is mentioned, there is always a comment about how Europe is struggling but when you look at the quality of life, happiness or life expectancy, all those numbers are higher than the US. People should stop obsessing with GDP.