Facts/Figures and Industry-Structure

Industry and Market Overview

With one of the lowest unemployment rates and an export rate of 55.9 % the German state of Rheinland-Pfalz is one of the most dynamic economies of Germany. Chemicals, automotive, metal production and metals products, mechanical engineering and also food and beverage manufacturing sectors are the pillars of the state’s economy. The state has developed several industrial clusters among which the most prominent are Commercial Vehicle Cluster, Metal and Ceramic Cluster and the most exciting up-coming sector is the one of renewable energies and energy efficiency.


Economic structure in manufacturing sector of the Federal States, 2017 share of gross value added in current prices in %

State

in %

Baden-Württemberg

39

Rheinland-Pfalz

35

Saarland

35

Bavaria

34

Thuringia

34

Lower Saxony

33

Saxony-Anhalt

32

Saxony

31

Germany

31

Bremen

29

North Rhine-Westfalia

27

Brandenburg

27

Hesse

26

Schleswig-Holstein

24

Mecklenburg-West Pomerania

22

Hamburg

18

Berlin

15

Source: The Regional Accounts (VGRdL), 2018

 
   

Export ratios of the Federal States 2017 (except city states; companies with more than 50 employees)

State

in %

Baden-Württemberg

57.0

Rheinland-Pfalz

55.9

Bavaria

54.7

Hesse

54.4

Saarland

52.2

Germany

50.1

Lower Saxony

48.3

North Rhine-Westfalia

46.3

Schleswig-Holstein

40.5

Saxony

39.8

Mecklenburg-West Pomerania

35.7

Thuringia

34.6

Saxony-Anhalt

31.0

Brandenburg

29.9

Source: Federal Statistical Office Germany, 2018

 

Structure of the Industrial Sector in Rheinland-Pfalz 2017

In terms of turnover and employment, the chemical and pharmaceutical industry is the most significant branch of the Rheinland-Pfalz industrial sector. With an annual turnover over 34 bn EUR in 2017, the branch accounts almost 37 % of the total turnover of the state and with almost 59,000 employees for 22% of all the employed people in the manufacturing sectors. 

In second place among the highest-turnover branches of industry ranks automobile construction, which achieved a turnover of more than 14 bn EUR in 2017 and employed almost 27,000 people in the same period. The development of this branch of industry in Rheinland-Pfalz is supported by the Rheinland-Pfalz Automotive Suppliers Initiative (www.auto-rlp.de) and the Commercial Vehicle Cluster (www.cvc-suedwest.com). 

In 2017 mechanical engineering occupied third place in terms of turnover with more than 10.6 bn EUR and second place in terms of the number of employees with more than 41,000 people.


Ten largest sectors of manufacturing industries by employment 2017 for companies with 20 and more employees

Sector

Number

Chemicals and pharmaceuticals

58,838

Mechanical engineering

41,117

Metal production, metal products

38,149

Automotive

26,695

Rubber and plastic products

24,166

Food and beverages

24,819

Glass, ceramics, and mineral processing

16,326

Office and EDP equipment, optics, electrical equipment

16,106

Paper, publishing and printing

13,662

Furniture and other goods

7,920

Source: State Statistical Office Rheinland-Pfalz, 2018

 

Ten largest sectors of manufacturing industries by sales 2017 for companies with 20 and more employees

Sector

in € million

Chemicals and pharmaceuticals

34,539

Automotive

13,770

Mechanical engineering

10,630

Metal production, metal products

8,807

Food and beverages

7,854

Rubber and plastic products

5,613

Paper, publishing and printing

4,325

Glass, ceramics, and mineral processing

3,612

Office and EDP equipment, optics, electrical equipment

3,033

Furniture and other goods

1,313

Source: State Statistical Office Rheinland-Pfalz, 2018

 

At Home in Rheinland-Pfalz: Global Players and Hidden Champions

In the heart of Europe, in Rheinland-Pfalz, they make their home: powerfully active, world-renowned companies on the one hand, and traditional, medium-sized firms on the other — the Hidden Champions. Globally active businesses with their headquarters in Rheinland-Pfalz include BASF in Ludwigshafen, Boehringer Ingelheim on the Rhine, and Schott in Mainz. But other firms operating on a global scale also feel at home here in Rheinland-Pfalz for example Mercedes Benz with its commercial vehicle plant in Wörth and Abbott Laboratories in Ludwigshafen.

Hidden Champions such as Wirtgen, a manufacturer of road construction machinery, are also based in Rheinland-Pfalz, as are the high-tech bicycle manufacturer Canyon; the wine-logistics company Hillebrand, which is recording dream growth rates with the export boom in German wines; the family company Schiffer, with the well-known Dr. Best toothbrushes; or the brand Griesson - de Beukelaer.


This mix of companies is the key to the state's success. With an export ratio of 55.9 percent, the Rheinland-Pfalz economy traditionally occupies a leading position in Germany. Not least to thank for this are the state's small and medium-sized companies, which operate successfully on the worldwide markets. The radius of action of the Rheinland-Pfalz economy of course includes neighboring European countries such as France, as well as the United States. In recent years, trade has rapidly developed with Central and Eastern Europe, as well as with South and East Asia in the form of India and China.


A selection of the largest employers in Rheinland-Pfalz

A SELECTION OF THE LARGEST EMPLOYERS IN RHEINLAND-PFALZ

 

Company

Location

BASF SE

Ludwigshafen

Daimler AG Mercedes Benz Werk Wörth

Wörth/Germersheim

Boehringer Ingelheim GmbH

Ingelheim

Debeka Gruppe

Koblenz

Schott AG

Mainz

ZDF Zweites Deutsches Fernsehen

Mainz

TRW Automotive GmbH

Koblenz

Adam Opel AG, Werk Kaiserslautern

Kaiserslautern

Adient Components Ltd. & Co. KG (former Johnson Controls)

Kaiserslautern

KSB Aktiengesellschaft

Frankenthal

AbbVie Deutschland GmbH & Co. KG

Ludwigshafen

Borg Warner Turbo Systems GmbH

Kirchheimbolanden

Stabilus GmbH

Koblenz

Michelin Reifenwerke AG & Co. KGaA

Bad Kreuznach/Trier

United Internet AG

Montabaur

Wirtgen Group

Windhagen

Schütz GmbH & Co. KGaA

Selters

BOMAG GmbH

Boppard

RENOLIT SE

Worms, Frankenthal

Juwi-Gruppe

Wörrstadt

ThyssenKrupp Rasselstein GmbH

Andernach

Lohmann GmbH & Co. KG

Neuwied

Bitburger Braugruppe GmbH

Bitburg

Papier-Mettler KG

Morbach

GRIESSON de Beukelaer GmbH & Co. KG

Polch

Faurecia Innenraum Systeme GmbH

Hagenbach

Klöckner Pentaplast GmbH & Co. KG

Montabaur

Source: Own Research (Date: 2017)

 

Modern plastics and pesticides from BASF, drugs for respiratory and metabolic diseases from Boehringer Ingelheim — these are just two examples from an impressive portfolio of the two worldwide companies with their headquarters in Rheinland-Pfalz. The chemical and pharmaceutical industry looks back on a successful tradition spanning more than a century. 

Here, chemistry adds up! Compared to the German chemical industry, the chemical industry in Rheinland-Pfalz has an above-average headcount per company and excellent turnover. Thus, the sales of 7,250 euros per capita was generated in 2017, a total of over 29.5 billion.

In Ludwigshafen, BASF operates one of the world’s largest contiguous chemicals sites. The pharmaceutical industry in Rheinland-Pfalz is flourishing. After all, Boehringer Ingelheim is the largest German research-based pharmaceutical company. And Abbott in Ludwigshafen underlines the quality of this industry in the business location that is Rhineland-Palatinate.

However, it is not only the large "model companies" in the chemical industry that embody the spirit of research and innovation in the state. Many small and medium-sized enterprises ensure that an export ratio of 69 percent is achieved in this industry with 47,000 employees. 

The future industry of biotechnology, closely linked to chemistry and pharmaceuticals, is undergoing rapid development in the state. In the Mainz area in particular, young, innovative biotech companies and spin-offs from Mainz University are benefiting from the infrastructure of technology centers and the excellent scientific environment as a source of ideas and a catalyst for progress.

Particularly worthy of mention is the Rheinland-Pfalz Cluster for Individualized ImmuneIntervention (CI3). This network pools the state’s outstanding expertise in the areas of pharmaceuticals, therapeutic approaches and diagnosis within the field of individualized immune intervention with the goal of becoming an international leader in this sector.

Renewable energies and energy efficiency are growing in significance. Expertise of this kind is at home in Rheinland-Pfalz, where environmental technologies are playing an ever-greater role. The spectrum of companies that compete in domestic and international markets is as wide as it is innovative. Their business is built on waste management and recycling, remediation, emission controls, energy generation and management, product-integrated environmental technology, and water and effluent treatment.

Rheinland-Pfalz is committed to intelligent, resource-conserving material-flow recycling, energy efficiency, and renewable energies. Technical environmental projects are conducted in close cooperation with IfaS, the Institute for applied material-flow management on the Birkenfeld Campus of Trier University of Applied Science — a site unlike any other operated by a German university. Students are enrolled in an interdisciplinary curriculum at this unique “Zero Emission University” — a name reflecting the ecological building layout, a CO2-neutral supply of heat and energy, and modern building and systems engineering.

Speaking of zero emissions: Weilerbach, located in the Palatinate region, is known as zero-emission village. The community has been successful in supplying virtually CO2-neutral renewable energy to its 14,700 residents. Morbach, another town, has been no less innovative in securing its energy requirements, by linking wind turbines, biogas, and photovoltaic installations with regional agriculture and forestry resources as well as industry. You’re welcome to visit and see how.

Recycling seeks to recover used materials. Companies highly specialized in glass, plastic, and metal recycling have been part of the Rheinland-Pfalz establishment for years. Theo Steil GmbH, for instance, operates one of Germany’s most modern steel and metal recycling plants in the harbor of Trier.

In the northern area of Rheinland-Pfalz, metals, ceramics and plastics are the stuff the future is made of. This area is developing into the leading innovation region in these industry branches. In particular the refractory industry, in the field of ceramics, offers huge development potential and plays a central role in, for example, steel production, the cement industry, the glass industry, and waste incineration.

In Höhr-Grenzhausen, there is located the European Center for Refractories. Together with the Research Institute of Inorganic Materials - Glass / Ceramics and the University of Applied Sciences Koblenz, field of study: Materials Technology - Glass and Ceramics, they all build a forward-looking competence center in the northern part of the State. Today, Rheinland-Pfalz presents itself as an innovative location of modern materials and surface technology.

With the Ceran® glass-ceramic cooktop panels developed by Schott, cooking was revolutionized across the globe, and glass-ceramic materials were applied to an entirely new use. At Schott in Mainz, glass-ceramics are also produced for many other promising areas of application that are interesting from a technical viewpoint, such as for mirror carriers in astronomy. The main mirrors for the Very Large Telescope in Chile are made of Zerodur® glass-ceramics. With a diameter of 8.2 m and weighing 23 metric tons, these are the largest glass-ceramic monoliths ever produced. 

At the world-renowned precious-stones site "World Center of Coloured Stones" at Idar-Oberstein, raw products from South America, Africa, Asia, and Australia are processed. Idar-Oberstein is the only center in the world in which all types of precious stones are polished and treated. The location stands out with its high level of technical and scientific knowhow, supported by businesses, world-leading research institutes, technical colleges, associations, and, last but not least, the German Precious Stone Museum. The German Diamond and Gemstone Laboratories at Idar-Oberstein (DEL) produce expert reports for customers across the globe.

The cockpit from Wörth (Mercedes-Benz), the seats from Rockenhausen, and the catalytic converter from Edenkoben: This is vehicle production, Rheinland-Pfalz style. More than 100 companies develop, optimize, and manufacture components ranging from brake pads to hydraulic shock absorbers and engine parts to sheet metal. From Rheinland-Pfalz, these products are shipped to locations across the globe. 

Over the last few decades, the automobile and commercial-vehicles industry has shaped the state's economic development like almost no other sector. After the chemicals industry, it is the most important industrial sector in Rheinland-Pfalz. 

To apply and develop our innovative expertise in all areas of commercial-vehicle production to an even higher level: That is the task of the Commercial Vehicle Cluster (CVC). There are now 85 partner organizations from the fields of economics, science, and management engaged in the CVC. A great deal of this involves the University of Kaiserslautern. The initiative's goal is clearly formulated: to gain a European pole position for Southwest Germany's commercial-vehicle industry – for the good of all and for the optimum development of, in particular, medium-sized supply businesses in Rheinland-Pfalz. 

This goal is supported by the key topic "Digital Commercial-Vehicle Technology Innovation Cluster", which the two Rheinland-Pfalz Fraunhofer Institutes are cultivating in cooperation with companies from the region. The goal of the Fraunhofer Innovation Cluster "Digital Commercial-Vehicle Technology (DNT)" is to reinforce research and development expertise for the use of information technology in the commercial-vehicles sector.

The healthcare industry is one of the most important sectors of our economy and will be one of the essential drivers of growth for the future. Three sources of impetus — advances in medical technology, increased health awareness, and increased life expectancy — have established new values and priorities that translate into considerable potential for new offers, products, and services in the healthcare industry.

With the opening up of new healthcare markets and the development of new products, services, and technical innovations, the healthcare industry provides an important contribution to the modernization and renewal of the economic structure of the state of Rheinland-Pfalz. The health of the state’s citizens is increasingly becoming a beneficial factor of this location. Investments in the preservation and promotion of good health secure not only the economic productivity but also the social welfare of our state.

Already now, the healthcare industry forms a supporting pillar for Rheinland-Pfalz's current strength and future development. Every eighth euro is earned in this sector and one in seven persons employed in this state works in this sector. The gross value added of the healthcare industry amounted to a total of 14.1 billion euros in 2015. Thus, in Rheinland-Pfalz this sector occupies the seventh place among all Federal States with a share of total value added of 12 percent.

The promotion of cross-sector and cross-industry cooperation and networking of cooperation partners is intended to bring about the development of new products and innovative services that contribute to strengthening value added and employment, as well as ensuring that the high level of medical care is maintained. The signs continue to point to growth: An increase by a further 12.1 percent is expected in gross value added and by 18.8 percent in employment by 2020.

Overall these are excellent conditions for the successful promotion of the future healthcare-industry market, with its huge potential for innovation, growth and employment in Rheinland-Pfalz.