Germany's manufacturing sector ended 2024 on a dismal note, with the Purchasing Managers' Index (PMI) falling to 42.5 in December, down from 43 in both October and November, signaling a potentially rocky start to 2025.
A reading above 50 percent indicates expansion, while a reading below 50 percent reflects contraction.
The latest numbers released Thursday show a particular downturn in the manufacture of "intermediate goods". These are unfinished products that are to be used in supply chains around the world.
There's also a big issue with unemployment in Germany's manufacturing industry. Unemployment in the sector stands at 6.1 percent, which is almost double what it was before the pandemic. Meanwhile, manufacturing jobs have decreased month on month for the last 18 months.
Heavy manufacturing, in things like steel making, has been hit hard by high energy prices in the country. Berlin has not replaced the cheap Russian gas that fueled that sector with an affordable alternative.
In addition, European manufacturers, including those in Germany, are expressing concerns over the return of U.S. President-elect Donald Trump to the White House. His extensive statements regarding the potential imposition of tariffs have raised alarm.
The German Economic Institute has indicated that should President-elect Trump follow through on his threats, Germany's GDP could be reduced by 1.5 percent over the course of his four-year term.
Germany's manufacturing sector sees disappointing end to 2024
China is accelerating the commercialization of marine scientific and technological achievements and fostering new quality productive forces by boosting support for small and medium-sized enterprises (SMEs) in the marine sector, with a focus on investment and financing to drive industry growth.
The development of marine industries is marked by substantial investments, high risks, and slow returns. However, with strong national support, some companies, such as Zhejiang Startest Marine Science and Technology Co., Ltd. in east China, have achieved notable success.
The company is a national high-tech enterprise specializing in the independent research and development of underwater sonar detection equipment and underwater information data systems.
It now holds more than 210 intellectual property rights for its designs.
"We are now fully capable of replacing similar foreign imported products with our own ones, thereby overcoming the bottleneck in production caused by foreign product embargoes," said Su Xiaoyang, president of Zhejiang Startest Marine Science and Technology Co., Ltd.
While some marine SMEs, such as Shenzhen HiCloud Data Center Technology Co., Ltd., China's first underwater data center equipment and service provider, have mastered core technologies, a gap remains compared to international standards. As a result, continuous investment is necessary for them to overcome critical technological challenges.
"The Underwater Data Center Pilot Project is a new infrastructure initiative requiring a significant initial investment and scale effects. However, both users and investors in the market still lack a comprehensive understanding of the project's strategic significance, including the technical risks associated with emerging technologies," said Pu Ding, general manager of the Underwater Data Center Pilot Project in Hainan under Shenzhen HiCloud Data Center Technology Co., Ltd.
To address the challenges faced by marine SMEs in securing investment and financing, the Ministry of Natural Resources (MNR), along with the Shenzhen Stock Exchange, has organized a series of roadshows since 2016. Over 200 marine SMEs and innovation teams have participated, securing more than 3 billion yuan (around 409.8 million U.S. dollars) in financing.
In addition to these efforts, the MNR, in collaboration with the Shanghai Stock Exchange, launched China Ocean Economy Stock Price Index in 2024, covering 20 marine and related industries.
"This is the first domestic comprehensive index in the marine sector, covering all the markets of Shanghai, Shenzhen, Beijing, and Hong Kong. It provides timely insights into the operational performance of listed companies in the marine industry and plays an important role in promoting the efficient allocation of financial capital to the marine real economy," said Feng Lei, deputy director of the Ocean Strategic Planning and Economic Department under the Ministry of Natural Resources.
Small marine firms accelerate commercialization of sci-tech achievements under greater policy support
