SUMMARY. Leading markets and cutting-edge fields for the future of the region

Transcription

1 SUMMARY Economic Report Ruhr 2013 Leading markets and cutting-edge fields for the future of the region

2 2 The pathway to a new image for the In the years that followed the global financial crisis of 2008/2009, there were numerous reports highlighting a shift in company strategies within the manufacturing industry. Substantial or one-sided dependence on successful exports, traditional industry, handed-down supplier structures and closely interwoven economic ties turned out to be commercially perilous for many medium-sized companies during the crisis. With a decline in the previously stable sales markets, many manufacturing companies found themselves facing ruin. Slumps in turnover, short-time working and contingency cost programmes dominated the agendas at executive and management board meetings during this time. A key consequence of this commercial crisis was an acceleration in the drive for innovation. As a result of these efforts, demand for other products, services and new solutions became a driving force of innovation for many companies. However, anyone wishing to comprehend and make use of this demand for solutions and customer requirements needs to understand the economics underlying the motivations of these customers and the megatrends for social change, along with their consequences in terms of new sales strategies. how the companies in the Ruhr district are already focusing significantly on the leading markets of the future. Making the future visible A successful structural policy needs to react to these changes, especially in a conurbation such as the Metropole Ruhr. The question of the significance of megatrends and leading markets is also relevant to the projects and instruments of structural policy. European structural funds, cluster networks and industry networks generate economic effects in the region by actively supporting the development of new business models and market strategies. As a result, these tools need to focus on the trends and leading markets. This maxim has significantly influenced the Ruhr economic report. The future viability of a region cannot be understood based on a static performance measurement system which relates to the past. The reality of the changes tak-ing place on the market can only be understood by examining the dimensions of how companies and industries are breaking away from their traditional value chains to enter new fields of business and ever-developing value networks. In short: it s dynamics which count and not status! Megatrends shape company strategies A shift in business strategy towards megatrends has been evident since 2009 at the latest in companies such as Siemens, Bayer, Haniel, Hochtief, Evonik and ThyssenKrupp. A broad number of medium-sized and owner-managed companies have made customer proximity, trend analyses and market diversification a focal point of their drive for innovation. Global challenges such as shortages of resources, climate change, demographic shift, urbanisation of the population and a desire for individual mobility, safety and health have combined to create a completely new map in terms of the country s economy and society. Companies are investing in developing products and solutions in these areas. As a result, classic industries and value chains are starting to change. Companies are breaking away from the previous chains and entering new high-margin sectors. This reflects the transformation of economic structures currently taking place in the Ruhr district. The Ruhr economic report reveals The presentations made in the economic report Ruhr 2013 are based on the observation that the once close ties within the coal, iron and steel industry have broken down during the course of this structural change in the and the companies are now becoming more closely integrated within new value networks. Even more important than this breakdown is the fact that new companies and innovative new specialisms with new regional cores have emerged. These are only evident upon second glance rather than taking a superficial look at the statistics and their repeatedly adapted yet outdated delimitations. The words of English science fiction author William Gibson are relevant here: The future is already here it s just not very evenly distributed and therefore it is rarely visible or tangible. The economic report aims to bring visibility to new developments and the future. It forms an economic framework starting with the future markets and the demand resulting from ongoing changes in human requirements and the ever more pressing social problems. Various different

3 3 investigations, studies and interviews about the dominant trends have been analysed for this report and presented based on eight markets which, according to prevailing opinion, are among the biggest and most influential markets of the future. The following leading markets are dominant: Leading market resource efficiency Demand for resource-saving processes, products and technologies will increase across the world over the next 20 years. This includes the efficient use and recycling of primary energy, natural resources, water and refined raw materials. The desire to generate greater output and affluence from the use of resources is shaping the global increase in demand on this market. Leading market health The ageing and increasingly active population has been increasing demand for health services for many years. Over the next few years, this field will become a booming market of considerable magnitude in connection with new technologies and individual diagnostic procedures. Medical IT systems and new services for people will play a considerable role in this. Leading market urban development & living Urbanisation will become the key to a modern society. Demand for new forms of living for families, OAPs and single person households in harmony with nature and the living environment will be combined with the optimisation of energy and new technological assistance systems in buildings. Areas of the city and balance between residential and commercial areas are relevant to this market. Leading market mobility The growing demand for simple door-to-door mobility with a low CO2 output is pushing classic suppliers towards new mobility solutions, e.g. suppliers in the automobile industry, public transport, logistics companies, Deutsche Bahn AG, bike and motorbike manufacturers, the software industry and developers of new drive technology (electro-mobility). Leading market sustainable consumption Confidence in products and their method of manufacture is becoming ever more important to consumers when it comes to everyday commodities. The humane treatment of animals, carbon neutral manufacture, short transport routes, residue-free fresh end products, fair wages for good work and the quality of the substances and materials used are all key criteria which are having an increasing impact on purchase decisions. Leading market digital communications Technological advancement is accelerating the everyday use of digital and mobile end devices in our professional and private lives. At the same time as this merging of device technology is taking place, demand for new content in everyday communications is also on the increase. So-called content production is a significant driving force on this market. The networking effect leads to a significant increase in users and to renewed demand for software programmes. Leading market education & knowledge The development of the education market is propelled by two forces: on the one hand, people are investing more money in their own further education in and alongside their job. Education is becoming a form of social capital. On the other, companies and public institutions are pressing for more educational services from early childhood. This leads to more state, semi-public and private education offers on the market. Leading market leisure & events Entertainment is losing its passive nature. It is developing to become a means of active exchange between artists and spectators. The trend for a Mediterraneanisation of public life is continuing to grow uninterrupted. Demand for collective outdoor events and creative, trendy locations has been increasing for several years. Company performances for customers and employees are adding a fresh and developing dimension to this market. Supporting the industrial comeback of the Ruhr economy When it comes to the future economic image of the Ruhr district, the industrial basis comes into play, i.e. the materials industry, the industrial process industry and the services closely linked with production. Even though the industrial core of the does not have the same exceptional significance as in the past compared with other

4 4 metropolises or less densely populated regions in North Rhine-Westphalia, it never-theless remains central to the economic dynamic of the Ruhr district. This is reflected by the fact that industrial activities and entrepreneurial services continue to be dynamic forces within the individual leading markets of the. The analysis of the leading markets was correlated with the statistical investigation of the impact of the Ruhr economy s turnover and employment in the region. The value networks relevant to the individual leading markets formed the basis for these analyses and were comprehensively defined, insofar as this was possible. In addition to the relevant core areas, related companies from the industrial subcontractor and upstream supplier sector, relevant related services and the engineering industry were also taken into account. The individual leading markets and their specific value networks are sche-matically represented in the graph on page eight. The report contains the results for all eight leading markets and for the industrial core and entrepreneurial services investing indirectly in these leading markets. They represent around 84% of employment subject to social security contributions in the. This is somewhat more than for the country as a whole (80.4%) and the state of North Rhine-Westphalia (81.5%). An overall analysis of the leading markets clearly reveals that the growth achieved and future dynamics of the Ruhr economy are significantly fuelled by the industrial core services and related services. This is reflected in the leading market of health as well as the mobility, urban development & living and resource efficiency markets. Here, mechanical engineers, materials producers, IT service providers, logistics experts and engineers are the driving forces behind the growth on the Ruhr. The positive effects of industrial development on the future viability of the should accelerate further over the next few years through joint collaboration. The new structural change requires new cooperations The economic report Ruhr 2013 reveals that the new structural transformation has already begun. Trends for social change will drastically affect the markets, entrepreneurial activity and competition in the regions. Resilience will be a key factor in success for both managers and employees. In this way, this transformation will become a significant cutting-edge field of the future for the region. The has proven its robustness and resilience in the past following structural changes in the coal and steel industry. However, the new structural transformation cannot be achieved using the same tools as the old structural transformation. Joint solutions for the future are required to bring about sustainable changes in production and consumption which extend far beyond the boundaries of the individual sectors. The change in energy policy will impact on the new role of the region in Europe as will the demographic shift and answers to the education question. In other words: this structural change can only be achieved with integrated concepts and the utilisation of the region s broad-ranging expertise. To ensure that our companies, our expertise and the region s employees can benefit from the dynamic of the leading markets presented here, cooperations and projects need to be further reinforced and redevised. We need a new culture of open cooperation to achieve creative solutions for the region. Promotion of the economy in the districts and the districtfree cities of the are already setting the tone. They have documented and presented a joint perspective on the future on the in the economic report Ruhr Analysis of the leading markets and cuttingedge fields of the future have made the future of the Ruhr economy visible, with all of the region s partners continuing to work together. Industry is a driving force for modern service products The manufacturing industry has lost significant ground in the Ruhr district in the late nineties. Deindustrialisation as part of the decline of the coal, iron and steel industry has had a substantial impact on the employment market in the. A lack of value creation in industry has also slowed the development of business-related services. The economic report Ruhr 2013 describes the turnaround in this development which has taken place over the last few years. It highlights the fact that links between the local manufacturing economy and the need for new services and products

5 5 represent the pathway to renewed sustainable growth in the. Industry and the manufacturing industry are the driving forces behind our economic development. Technical solutions from the electronics industry are needed to ensure efficient use of resources in production and in the building management sector. Microtechnologies and new transmission technologies combined with new preventative health services are the driving force behind the health industry. Urban development and living will be transformed into concepts for entire areas of the city using new construction materials, machines and intelligent concepts. Combined with innovative craftsmanship, high quality IT service providers, logistics and engineering of-fices, an exceptional, sustainable and efficient economy can be created for transforming urban living in the. Cutting-edge fields of the future reveal the economic talent of the A host of new business-related development services have established themselves in the area around the region s numerous research institutes. Employment has risen sharply over the last few years at test laboratories, wholesalers, technical traders, health services, engineering offices, cultural service providers, planning and consultation companies and extramural research institutes. They form the nucleus of the future growth and cutting-edge industries. This nucleus specifically combines industry, research and new services. Analysis of the new leading markets has led to the identification of 19 cutting-edge fields of the future in the. These fields will play a leading role in the economic promotion work. The aim is not to replicate these fields of the future 15 times over to establish them equally in all of the cities and districts in the same form. It is not necessary for everyone to do everything. Instead, the key aspect is for the broad range of opportunities in these future fields to be acknowledged and utilised in day-to-day work. We want to achieve visible progress for the economic structure of the entire Metropole Ruhr by working on these cutting-edge fields of the future. The setting of different priorities will play a key role in this. A new urban economy the motto for the future of the Business developers in the are focusing on the motto of a new urban economy for the future of the Ruhr economic metropolis. This includes developing and offering a value network covering industrial companies, service providers, infrastructure facilities, products and services for the sustainable development of metropolises and megacities. The new urban economy focuses on achieving greater affluence in the big cities with reduced use of resources by implementing an efficiency revolution in manufacturing. This perspective of new urban development does not require a renunciation of power, energy, consumption or mobility but instead involves increasing efficiency in producing the fundamental aspects of our lifestyles. Chem-ical companies, metal processing plants, energy suppliers, construction companies, craftworkers, IT service providers, logistics experts and retailers in the region have frequently made this motto the focal point of their everyday economic performance. Focusing on the motto of a new urban economy presents the advantage that solutions can be developed to meet the challenges specific to the region. At the same time, the world s megacities are facing similar chal-lenges and in future will therefore represent sales markets for the products and services of our local companies. The business developers of the will continue to work on the motto of a new urban economy over the next few years as part of new collaborations and labour divisions within the defined fields of the future. The Ruhr economic report will now be published annually to provide information on the developments taking place in the. Note on methodological approach: Data on employment statistics (Federal Employment Agency) and turnover tax statistics (Federal Statistical Office, IT.NRW) form the basis for these quantitative leading market descriptions. An additional methodology report documents the precise methodological approach adopted in relation to the data used and the selected leading market demarcations.

6 6 The leading markets at a glance - graph HEALTH social sector trade sport care EDUCATION & KNOWLEDGE further education educational organisations pre-school education, schools, universities, research food body care laboratories medical technology inpatient and outpatient care, insurance, administration, pharmaceuticals transportation, transport infrastructure, mobility management, logistics trade workshops agencies laboratory, engineering and oil tyres measurement services MOBILITY SUSTAINABLE CONSUMPTION trade negotiation, wholesale, retail machines and processes substances and materials INDUSTRIAL CORE & BUSINESS SERVICES business-related services IT hardware, telecommunications services, data processing services and software trade repairs infrastructure DIGITAL COMMUNICATIONS raw materials extraction and processing trade and maintenance RESOURCE EFFICIENCY machines and materials laboratory, engineering and measurement services power generation, power distribution, water management, environmental management, recycling cultural sector, audiovisual media, events, leisure, tourism, sport sport equipment and musical instruments leisure and cultural institutions Handel und Wartung trade publishing LEISURE & EVENTS construction industry for housing market, finishing trade for housing market, furnishings substances and materials architecture and engineering trade renta administration URBAN DEVELOPMENT & LIVING

7 7 The leading markets at a glance - figures industrail core & business services health urban development & living mobility sustainable consumption resource efficiency leisure & events education & knowledge digital communications Employees subject to social insurance contributions June Share of economy as a whole 3,9 % 3,5 % 4,8 % 4,5 % 4,7 % 2,9 % 3,6 % 3,6 % 6,7 % 7,6 % 7,8 % 6,0 % 5,0 % 5,7 % 6,3 % 11,2 % 11,6 % 11,6 % 10,0 % 9,6 % 11,7 % 18,4 % 19,0 % 16,6 % 16,9 % 15,5 % 15,3 %

8 8 Initiator: Contractor: Wirtschaftsförderung metropoleruhr GmbH Ruhrstraße Mülheim an der Ruhr Institut Arbeit und Technik (IAT) Munscheidstraße Gelsenkirchen Design: FREIWILD Kommunikation This is a summary of the Economic Report Ruhr The full report can be ordered from Wirtschaftsförderung metropoleruhr GmbH ( to info@business. metropoleruhr.de) and is also available for download under metropoleruhr.de/fileadmin/user_upload/wmr.de/tmp/projekte/wirtschaftsbericht_ruhr/wirtschaftsbericht_ruhr_2013.pdf As of December

9 business.metropoleruhr.de 9