Regional Economic

Further starting points for the promotion of regional economic relations

First of all, the change in the economic structure favors smaller-scale economic relations. Since only minor neighborhood externalities emanate from modern industries, there is again a mixture of residential and working places, which took place during the old industrial one

Production mode were separated. Agglomeration disadvantages in the past will give rise to agglomeration advantages that favor regional economic cycles.

Due to corporate strategies, there are opportunities for the regionalization of economic cycles. This is how multinational companies want to settle in the regions where the customers and the competition are or potential suppliers. This is especially true for the automotive industry, which has a regional focus near the transport district Pforzheim has. The efforts go to the settlement of suppliers on the premises of the car companies, which would be from the procurement side, the supply links are becoming smaller. However, in the case of the automotive industry as well as many other industries, the sales side is predominantly supplied on a large scale. Mainly small-scale industries are sawmills, suppliers of jewelry industry, precision engineering, semi-finished products.

The medium-sized companies are found together to cooperate, to jointly develop a product that is marketed nationwide.

This causes regional at least on the procurement and production side business cycles. In this context, companies are considering how freight traffic can be optimized. Still these activities are further supported by the “Capacities Exchange” of the Chamber of Industry and Commerce, an Internet platform with which companies can use machines that are underutilized with each other.

In addition, there is the regional marketing of agricultural products and foodstuffs, where consumers’ preferences for products from the region are most evident.

In the food sector, there is a state initiative in the form of a quality label Baden-W├╝rttemberg, which is also broken down to the individual regions.

Also building materials as well as windows and doors would be suitable for regional business cycles. Here consumers must be made even more aware, instead of in the hardware store at the craftsman or producer on site shopping. In the furniture industry, however, is for the larger producers the supraregional paragraph indispensable to in the unit cost degression too come.

In the case of drinks transport, the tendency is for regional sales for Europe-wide sales. With the mineral wells fall however still 80 to 90% of sales to the region (including Greater Stuttgart and

Northern Black Forest). The company benefits from the fact that mineral springs in the northern Black Forest, which have a good reputation, are not far away from the Stuttgart sales market. The situation is similar with sweet drinks (Sodas), where transport costs are too important

to be able to market it nationally. The other beverage sector, however, is hardly regionalisierbar. In the case of beer, the concentration process is decisive and large-scale breweries can compensate for transport costs through lower production costs. In the traffic district Pforzheim there are not a major brewery, in Stuttgart there is a concentration on a supplier that supplies mainly Baden-W├╝rttemberg.