Economic Development Futures Journal

Friday, July 16, 2004

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German Engineering Jobs Head Eastward

The flow of sophisticated engineering jobs into low-wage markets is reshaping economics around the world and countries like China and India are not merely taking away existing work from industrial nations but are also creating thousands of new jobs, media reports say."For years Germany, like many other countries, lost manufacturing jobs to China and other low-wage countries in Asia and Eastern Europe. But its engineering sector remained a safe haven, one of the few areas where the country could hold its own globally.
 
Now engineering jobs are beginning to move abroad as well," The Wall Street Journal reported yesterday."Highly paid German engineers proved their worth with a steady stream of innovations, including the world's fastest train, designed by Siemens and ThyssenKrupp AG," it said.The Journal says in a front page dispatch that the development of a flashy new Siemens mobile phone, nicknamed Leopard, not in Germany but by Chinese engineers in a white six-storey building in China by a 33-yer-old Chinese engineer, Li Tao, and a crew of other young Chinese engineers is ominous."Siemens' decision to turn East for engineering know-how represented a big gamble for a company that has relied on the ingenuity of its German engineers for more than 150 years. It also reflected one of Germany's biggest economic challenges ever: the erosion of its dominance in engineering, long the life-blood of the world's third largest industrialised economy and a source of national pride."
 
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