Category Archives: Industry

Reasons of German economic success

      One of the programs that contribute to German success at being an economic hub in Europe
( especially in highly qualified industrial products ) is the combination or merge between theoretical studies and practical experiences of sudents in highschools before graduation.  They send students at the age of 15 or to 16 to practice what they are learning and get a real life experience and more into depth knowledge of their future career that they are studying or willing to study. For example, a student willing to study mechanical when at highschool mechanical  engineering is sent to a factory to work to get to know if he or she is fit to that job or not. If interested, he or she can receive pre -high school training before even going to college or university.In that manner, students will become more skilled at what they do and improve and increase German human capital which is important to sustainable development. This tradition goes back to more than a century ago in Germany, which inspires many other countries to adopt a similar training program for students. For sure, such a program has to be modified to suit that particular and specific needs and social customs  of each country.

      Germany  can be a reference and an inspiring example for industrial and overall economic success because
German products like cars, chemicals, electronics and utilities are well known for their high quality and greatly demanded overseas. Germany is the second largest world exporter of products and services after China.Many are the famous German companies operating globally like BMW ,Siemens and Faber Castle as only few examples out of many others. Moreover,  the German economy is the largest in the Europe with a GDP of 3,500 billion dollars recently, and greatest guarantee for the unified European currency called the Euro that was adopted  in 1999 for the first time. The European central Bank ( which enjoys relative independence, prints money and controls the financial issues of the EU ) is located in Germany as a sign of economic power of Germany in Eurpean Union and eventually in the world.

Another term that enhances German economic success is that almost 70 billion $ or 2.3 % of all German Gross domestic product
have been spent on research and development , which has been the fourth largest sum of funds in the world after USA, China and Japan in 2011 according to Wikipedia. German labor is innovative in general because it adopts and innovates new technologies.In addition, as far as 11% of German labor works in high technology , which is one the highest in the world according to some sources. This contributes to scientific , technological and thus economic development that attracts many highly skilled labor and highly educated people to stay and work in Germany which benefits from them in many ways.Due to well advanced infrastructure and contiuous structural reforms, this country creates a lot of job opportunities ,so many jobs have been created at all years even in 2008 & 2009. German unemployment rate was 5 % only in October 2014 which is one of the least unemployment rates in the world. Many reforms or corrective steps in the labor markets have been taken by Germany more than 10 years ago.Moreover,Germany like many developed countries has a unemployment ensurance that guarantees at least minimum standard of living. Generally speaking , many reasons make Germany a very brilliant star in the European Union and an economic heaven in the European and global atmosphere.

Industrial growth in the Arabic Gulf

   As emerging or rising nations, the Arabic Gulf countries like Kingdom of Saudi Arabia, United Arab Emirates,  Bahrain,  Qatar, Oman, and Kuwait have experienced industrial growth in general. According to statistics , the value of industrial investment increased in these  countries from 181 billion $ in 2009 to 369 billion $ in 2013. This industrial development was achieved thanks to the governments there providing adequate infrastructure such as developing enough electric power factories and building up large airports and harbors for example. Many industrial cities in that region have been established like Jubail industrial city in Saudi Arabia that has dozens of factories and industrial facilities. Another example is Dubai industrial city that has many manufacturing companies and enjoys many facilities like big office spaces , open storage yards and labour villages in Dubai in United Arab Emirates. Since all of the above mentioned countries have high income , high GDP, and great accumulated wealth from Petro dollars, they are offering huge amount of development funds and incentives for industry there to grow and prosper. The Gulf countries ( in South West Asia ) do have cooperation between private sector and public sector. Moreover,  highly skilled and experienced workers and engineers from all over the world are encouraged to work there due to high level of income and high wages, which are among the highest in the world. However, many locals or citizens in the wealthy Arab Gulf countries are sent for free at the expense of the state or government to study abroad in USA, Europe , Australia and Japan , so these students can gain the formal education to be a well qualified worker in the future once they return to their homeland. Another factor assisting industrial development in the Gulf is that some of the Gulf countries are now among the 40 highest spending countries on research and development.

Another important factor as well contributing to industrialisation is the abundance of natural gas and petroleum that is easy and cheap to extract and export. This region enjoys very important share in the oil industry and production despite the increasing production of crude oil worldwide.

   They are oil exporting countries, so they have accumulated 2,450 billion dollars in the years between 2003 to 2013. Petroleum is not only a great source of wealth and income to the Gulf countries,  but also natural resources or cheap fuel to generate energy used to mobilize industry. Crude oil can be used as a low cost and abundant raw material or primary material that can be processed intob petrochemical and chemical industry. Methane gas, ethane gas and  Amonia can be produced and processed from crude oil. In specific, Amonia plays a significant role in the production of agricultural fertilisers that can boost agricultural productivity. These agricultural fertilisers are exported to South Asia and East Asia where population mass is big and increasing agricultural productivity can truely benefit the economy there and feed the population.

   The fertiliser production capacity grew 4 percent in the Gulf where as the growth average in the world was 1.7 % in 2013. Thus , the Petrochemical and chemical industry is the second largest manufacturing sector of the whole industry  in the Gulf and so the Petrochemical industry is estimated to be around 97 billion $
Of industrial production per year.
In the coming future ,  the Gulf region can develop and play a growing importance in the world industry.

   They realize that they have to diversify their economies  because of the falling prices of oil due to the expanding supply of crude oil worldwide. Technological progress and development has increased the extraction and production of oil among which is the increase of one million barrels of oil from USA in one year only. Alternative renewable energy sources such as hydroelectric,  wind , solar, geothermal and bio fuels are increasing in a continuous manner and so can reduce the demand and hence the price of oil barrels year after year. In 2012 and 2013 , 19 % of energy consumed worldwide has been from renewable sources of energy. In that manner, the gulf region (which is rich in Petroleum and natural gas )has to rely on industrial,scientific  and technological development  step by step in order to remain rich and economically secure.

Man made diamonds

Synthetic diamonds are also called laboratory created diamonds or laboratory made diamonds. They can be of different colours like blue, green, yellow and others.These artificial diamonds are made from pure carbon put under high temperature and high pressure and many other methods. They found that diamonds are formed very deep under ground through high temperature and high pressure , and so in similar manner they can produce precious artificial diamonds that has some good properties as well like hardness, thermal conductivity and electric mobility.  According to a website under Wikipedia, 98 % of diamonds used in industry  is from synthetic diamonds because it is cheaper than natural diamonds. Some  methods are used to distinguish natural diamonds from synthetic ones. Synthetic diamonds are used in production of semiconductors , machine tools and  optical applications. Synthetic diamond industry which is progressing recently and costs less than real natural diamonds , can be used in making cheaper jewellery for customers who care for less prices rather than more expensive jewellery and real diamonds.

Sea Algae transformed to crude-oil

Sapphire Energy , one of the few other companies like, Pacific Northwest National Laboratory, claim to be able to transform Algae to Crude Oil in less than 60 minutes by processing the harvested Algae through ordinary refineries. Sapphire Energy has paid off 50 million $ of loans by selling green crude oil produced from Algae.

Sea Algae
Sea Algae
From Flickr, User: Daniel Ramirez

Algae can be considered a renewable source of energy and could contribute to reducing CO2 in the air and can provide, in the long run, a cheap source of renewable energy. It can be planted in areas not suitable for agriculture and grows in salty water.

With time, when the production of Biofuel produced from Algea (that is available everywhere ) expands and grows , it can reduce the price of petroleum and natural gas. In the future, due to many renewable resources energy ( biofuel produced from Algea is just one part of this huge potential of renewable resources ) , we can get huge benefits to world economy, living standards and environment.