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Economic Recovery in Germany Marked with Fierce Rise in Inflation and a Stronger Green Transition


Economic Recovery in Germany Marked with Fierce Rise in Inflation and a Stronger Green Transition

When examining a recovery for the German economy as the world rebounds from the events of 2020, it’s important to realize that many sectors will continue to struggle throughout this year. Although the response from the government was fast and strong at the start of the pandemic, three main challenges remain top of mind for Germany this year throughout the recovery process as businesses adapt to a withdrawal of government support and the economy reopens. Many of them took up debt last year and are more vulnerable than before the start of the pandemic. In addition, supply bottlenecks across several sectors will affect exports, and lastly, they will face rising inflation, which is forecast to rise to 4% later this year.

At the onset of the pandemic, the German government provided an immediate response to support businesses, which led to a sense of stability for most of 2020 and the beginning of 2021. Now, as vaccinations progress and cases go down, the government will evaluate its existing stimulus measures and begin to pull back on fiscal support. The German government’s generous support has already provided for approximately $400 billion in direct support (11% of GDP), higher than most countries in Western Europe. Much of what happens next will be decided during the September parliamentary elections but in the meantime, businesses are preparing to say goodbye to the generous financial aid provided.

One government support staying in place is the suspension of the Debt Brake Rule. This rule – which limits the federal deficit to 0.35% of economic output per year, by adding an investment rule to secure enough public money for climate protection, infrastructure, health care and education– has recently been officially suspended for 2022. Not only does this temporary suspension this rule ease the burden on German businesses and the wider economy, but helps transatlantic relations with the U.S., which has been running a trade deficit with Germany. The suspension of the rule has and will continue to help with the U. S’s high current account deficit with Germany, however, it is only predicted to be suspended through 2022.

Businesses globally are struggling with some of the worst supply chain issues to date. This is hitting German sectors particularly hard, as there is a national shortage of shipping containers and semiconductor chips. Supply chain issues are expected to be mainly short-term for the manufacturing industry, especially the automotive industry, and opportunity lies ahead in the medium-to-long term as demand grows for German exports in China and the U.S. The need to spend more on sustainability is the broad consensus among the German population and the main political parties and it is predicted the green party will be a strong contender in the September election. Demand for electric cars is growing, and the Germany car industry was able to play into this trend pretty well, helped by their strong financial position.

There are business opportunities in Germany for companies providing products or services for digitalization and sustainability, as Germany is striving to catch up in the digitalization process.

In general, the German economy is in good shape. While many businesses adapt as the stimulus pulls back, a few sectors will be struggling – such as textile and retail, where margins were already thin prior to the pandemic. The metal and steel industries are generally in good condition, with some upset from strong competition and small profit margins.

Keeping in mind that despite stimulus and support, businesses operating in Germany will have to protect their trade receivables in anticipation of the economic changes this year will bring.


Theo Smid is a Senior Economist for Atradius based in the Netherlands.

data center

Data Center Server Market is Projected to Reach 100 Billion by 2027

According to a recent study from market research firm Global Market Insights, Growing demand for high-performance servers worldwide is expected to boost the data center server market size in the coming years. There has been a high demand for advanced data center infrastructure solutions in recent years across many industries. Driven by increasing demand, numerous data center business operators are expanding their presence into untapped regions. Industries across the Asia Pacific and North America are increasingly relying on cloud data centers. As per a report published by Global Market Insights, the global data center server market is expected to exceed USD 100 billion by 2027.

Key players functioning in the data center server market are focusing on launching new innovative solutions to strengthen their market position. They are also offering supporting software solutions for remote monitoring of servers. For instance, Chinese technology major, Lenovo Ltd. offers servers that provide easy setup, firmware, and remote server management with the latest Intel Active Management Technology.

Notably, the recent adoption of digitalization in healthcare has also played a major role in surging the demand for data center servers. Healthcare organizations are gradually accepting online methods of payment like the adoption of POS terminals for contactless transactions. To employ an integrated platform that controls payment transactions, the healthcare sector is edging towards the use of cloud POS software solutions across premises.

Elaborated below are some of the key trends driving data center server market expansion:

1) Rising demand for tower servers

Tower servers are witnessing a high demand as they deliver versatile storage configurations and powerful performance in a small footprint for SMBs to big institutions. These servers have the capacity for high optimization and customization, hence allowing firms to adopt a server configuration that fits to their requirements. Compared to other servers, tower servers ensure quiet operations. The agility and scalability provided by tower servers can propel their demand by expanding and emerging businesses.

2) Increasing adoption in the healthcare sector

Several healthcare organizations are using POS terminals to allow contactless transactions and accept digital payments during the pandemic. They are adopting cloud POS software solutions to employ an integrated platform that controls payment transactions throughout the whole premise. The industry is also using technologies like telemedicine and video conferencing, in order to enable remote consultations. The growing presence of digitalization is likely to fuel the demand for data center infrastructure solutions for efficiently managing data.

3) Presence of key automotive manufacturers in Europe

The promising manufacturing sector along with the rising adoption of advanced digital technologies is expected to boost the demand for data center servers for networking and data storage. Major automotive manufacturers such as Mercedes-Benz and BMW AG are using sophisticated technologies including IoT and machine learning, in their production centers to accelerate productivity. A surge in data traffic could drive the demand for advanced IT infrastructures which can efficiently help transfer and store vast volumes of data.

Key Companies covered in the data center server market are Acnodes, AsusTek Computer Inc., ATOS SE, Cepoint Networks LLC, Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., IBM Corporation, Inspur Group, Intel Corporation, Lenovo Group Ltd., NEC Corporation, Nvidia Corporation, Oracle Corporation, Panaro Tech Private Ltd., Premio Inc., Super Micro Computer Inc.


yard management

The Importance of Digitizing Yard Management

The COVID-19 pandemic has changed the way in which businesses operate. With the new regulations taking place, constant changes of guidance from various governments, and overall instability, companies have figured the significance of effective yard management systems

A yard management system (YMS) is a special type of software developed to track the progress of trucks and trailers belonging to a yard of a warehouse, manufacturing facility, distribution center, or other buildings. The significance of such a system is clear – it shows real-time information which is very helpful in managing the yard. 

Company employees see real-time data about trucks and trailers and they effectively move trailers from staging to docks. As a result, the company is more effective, all orders are completed right on time, and the overall effectiveness is increased. And of course, setting up such a system saves the expenses on maintaining the yards. 

Even without the pandemic, the yard management system would have a great impact on the effectiveness and cost-efficiency of a business. Digitalizing the yard operations each year saves the expenses on transportation and capacity. Overall, the impact of digitizing yard management is significant, and here is why.

Benefits of Yard Management Digitalization

Even though the recent data shows that most companies invest from 0% to 5% of their budget into digitization and automation, there are still businesses willing to digitize their yards. Digitalization may improve efficiency, improve security, and greatly reduce transportation costs. Here are some key advantages of digitizing yard management:

-Digitalization has great potential to remove human error in transportation.

-Digitalization gives aid to shippers by optimizing not only the time but also resource consumption and labor.

-Significant decrease in package time, allowing clients to receive their purchases a lot quicker – and that is good for business. When the most famous e-commerce companies deliver their packages within days, it is hard to be competitive when delivering orders within weeks.

-It makes a company more competitive due to the spread of digitalization. Nowadays, most competitive companies have at least basic automation.

-Reduces operating costs.

The most advanced systems will even notify the managers about the most trending products to be almost out of stock. Thus, whenever managers receive such messages, they can order more trending products so when the clients order them, they won’t have to wait for months. 

Moreover, huge companies’ logistics executives are seeking methods of optimizing automatically the flow of products into and out of the available facilities (warehouses). They seek ways of effectively managing yard capacities, yard service providers, trailer pool availability, transportation contracts, etc. A lot of things can be improved by simply choosing the right maintenance system.

Overall, a digital yard system is more beneficial than standard paperwork. PINC – a digital yard solutions provider, takes a deeper look at how this can benefit operations in a recent series of articles and webinars. Instead of using tons of company’s resources on managing which isn’t as effective, a company is spending on fixing the most common issues thus enabling more efficient workflow. The digital yard system solves many problems as stated below.


An effective yard operation is when everything is done on time. That’s why visibility is so important. Instead of creating bottlenecks and moving trucks in or out without any purpose, the company manages all yard operations effectively due to visibility provided by YMS.

Wise Planning

Wise planning isn’t possible without visibility. Before the trucks arrive, you see what exactly is coming at you thus giving time to plan before the truck arrives. As a result, a company’s executive sets appointments, work schedules, organizes yard moves, etc. When the truck arrives, the workflow is organized effectively and there is no waiting time.


The speed is related to visibility. When you see what is inside the containers, when they arrive, etc., you can manage effectively. Productivity is largely improved since the employees move everything effectively.

Labor Forecasting

If you visit a traditional yard (the one managed by a manual system with all the paperwork), you will see trucks waiting for their turn to be unloaded or uploaded. That is due to the waiting time since the manager has to manually find a place for a container, or where the truck should be loaded with goods. A YMS system is a lot more effective since managers direct trucks to sections where they should upload or unload goods prior to their arrival.

Improved Communication

YMS allows managers to set the software so it will automatically notify customers, drivers, yard managers about the goods that are in or out, or goods that are on their way. In fact, all the supply chain will have access to the yard through real-time data supply. 

Loss/Theft Prevention and Security Improvement

YMS offers a way to save money on security improvements since it tracks all the goods the moment they have arrived in the yard. A lot of things can go missing or be stolen if the yard is managed manually, but it is nearly impossible with YMS.

Reputation Improvement

Effective yard management directly affects your reputation. When all the packages are delivered when customers expect them, without any delays, your company is seen as a reliable option. Most customers also prefer to track their purchases, and YMS can help with that.

Cost Saving

The visibility and overall management improvement directly impact the expenses of a company. It reduces fuel costs, labor, retention costs, and minimizes the amount of freight on the shelves instead of trucks. Companies that have implemented YMS make fewer errors, they don’t need that many trailers to host goods, impact the costs on expired inventory, etc.

Better Work Environment

YMS greatly reduces every hostlers’ anxiety during work. Instead of having tedious paperwork, hostlers use easy to use tablets. With the help of these tablets, they effectively manage the yard and it takes less time and effort. Thus, no depression, anxiety, and it immensely reduces the stress of everyday work. 


Even without the need of implementing optimizations due to the pandemic, digital yard management has a great impact on the cost-effectiveness and overall progress of the company. It makes everyone’s life easier and YMS reduces the cost of transportation and yard management. 


Since her teen years, Bethany Watson was always interested in writing and esports, so she decided to merge these two passions by choosing the career of a journalist who mostly writes about trends in eSports. She regularly contributes to the major media publications in the niche and serves as an editor for