The German medium-sized industry is currently facing significant challenges due to high energy costs, excessive bureaucracy, deteriorating infrastructure, and a severe shortage of skilled workers. ZINQ, an energy-intensive company specializing in zinc-based corrosion protection for steel, is no exception. In an interview with Lars Baumgürtel, the managing partner, the discussion revolves around the necessary economic policy decisions, ensuring a stable energy supply, promoting a competitive circular economy, and highlighting the importance of innovation for the future of the German industry.
Table of Contents: What awaits you in this article
The Economy as the Driving Force: Challenges and Solutions
Zwischen den Tauchvorgängen (Foto: Beushausen. ZINQ)
Lars Baumgürtel emphasizes the crucial role of the economy as the driving force behind society, which is currently facing significant challenges. To address these challenges, it is essential for the economy to actively engage in the debate and collaborate with politicians and European partners to develop a sustainable economic strategy. The middle-class sector is particularly important as it acts as a catalyst for innovation and value creation. By working together, we have the potential to successfully navigate through this period of transformation and enhance our competitiveness.
Importance of Diversification in Strengthening Germany’s Competitiveness
Mr. Baumgürtel emphasizes the importance of not focusing on individual industries. All sectors of the economy are closely interconnected and contribute to value creation. The energy sector, resource-intensive industries, services, and trade are equally important for a sustainable and competitive restructuring of our industry. The federal government must create framework conditions that promote entrepreneurial creativity, innovation, and investment. Only in this way can we stop the massive outflow of capital from Germany and strengthen our competitiveness.
Ensuring the Competitiveness of German Industry: Addressing Energy Costs
Lars Baumgürtel, geschäftsführender Gesellschafter der ZINQ Gruppe (Foto: BjörnBild. ZINQ)
In order to maintain the competitiveness of the German industry, it is crucial to reduce energy costs. This includes lowering the grid fees for electricity and eliminating additional burdens that distort competition. Freezing the CO2 price for natural gas would also ensure planning security. These measures are necessary to decrease energy costs and strengthen the competitiveness of the German industry.
Urgent need for an industrial strategy promoting investment and innovation while reducing bureaucracy and inefficient regulation
An industrial strategy that promotes investments and innovations while reducing unnecessary bureaucracy and inefficient regulations is urgently needed. This strategy should also provide solutions on how to supply the energy-intensive industry with cost-competitive CO2-neutral energy and establish a reliable raw material supply through a competitive circular economy. Decision-makers must address the complex interconnections and engage in a dialogue with entrepreneurs on an equal footing.
Importance of Transformation to a Climate-Neutral Industry for Competitiveness
The transition towards a carbon-neutral industry is crucial to maintain our competitiveness. Economic growth is the foundation for financing societal tasks, and to sustain and enhance this growth, increased investments in infrastructure and the promotion of economic transformation are necessary. The newly elected federal government has limited time to redirect and support the industrial transformation.
Excessive bureaucracy hampers sustainable transformation in German economy
Die Stahlbauteile für LKW-Auflieger glänzen nach dem Auftauchen (Foto: Carsten Paul. ZINQ)
The German economy is making significant progress in driving transformation, but it is hindered by excessive bureaucracy. Regulations at all levels and the multitude of reporting obligations make sustainable business practices more challenging. The bureaucratic burden diverts attention from the primary objective of transformation. It is crucial to adopt pragmatic approaches that are proportionate and do not encourage misallocation of resources. A new risk culture, both in companies and government agencies, is necessary to embrace mistakes and enable swift implementation.
Structural Problems: Volatile Renewable Energy and Lack of Synchronization
The German energy supply is facing structural challenges due to the volatile generation of electricity from renewable sources and the lack of synchronization between generation and consumption, leading to both excess and shortage of electricity. However, the industry requires a reliable energy supply. A well-balanced and cost-effective energy transition is crucial, requiring increased investments in infrastructure, intelligent load management, and improved location planning for energy generation in coordination with industrial consumers. Energy carrier coupling, particularly the enhanced use of green hydrogen, can contribute to making the energy system more stable and mitigate the costs of volatile electricity generation.
Promoting a Circular Economy: Key to a Successful Industrial Strategy
A successful industrial strategy should prioritize the development of a circular economy. While the German waste management strategy provides a framework, it focuses too heavily on quantitative targets for recycling and continues to rely on incineration and landfilling. A true circular economy requires a shift towards circular product design and the implementation of R-strategies such as repair, reuse, repurpose, refurbish, redesign, and replace. By prolonging product lifecycles and promoting resource reuse at the end of their life cycle, a circular economy can reach its full potential.
CO2-neutral energy sources in industry: The potential of energy coupling
Energy carrier coupling enables the use of CO2-neutral energy sources in energy-intensive applications, opening up new opportunities for a sustainable and competitive industry. To create a level playing field, policymakers should consider externalized costs. Additionally, it is important to collect, evaluate, and disclose data on the environmental impacts of products. Energy carrier coupling provides an economical alternative to natural gas, reducing volatile electricity costs and strengthening the industry’s competitiveness.
Meeting the challenges and seizing the opportunities in German industry
The German industry is currently facing significant challenges, including high energy costs, excessive bureaucracy, and a shortage of skilled workers. However, there are also opportunities for growth and development. To ensure the competitiveness of the German industry, it is crucial to implement a future-oriented economic strategy, reduce energy costs, streamline bureaucracy, promote a competitive circular economy, and leverage the potential of energy source coupling. It is essential for policymakers to prioritize the needs of small and medium-sized enterprises and family-owned businesses to maintain a sustainable and competitive industry in Germany and Europe, ultimately safeguarding crucial jobs.
