1 Introduction : Perspectives on German Industry and Its Competitiveness

Many Germans look back to the 1970s as a highpoint in their nation’s industrial development. The hallmark “Made in Germany” then signaled not only well-made products, but also a highly efficient industrial system. German industry was recognized internationally as a model of high achievement; the country’s engineering, automotive and chemical industries were at the forefront of technology; and German products had an international reputation for quality and performance. At the time, customer demand for German products was so high that many manufacturers faced labor shortages as they tried to obtain workers to meet their order books.