Munich is not the most expensive big city in Germany, but also the one with the lowest unemployment figures. Of course, this is also related to the strong economy that Munich is home to. Countless successful companies are based in the state capital and ensure that prosperity is maintained in Munich by maintaining the productive core.
Siemens as part of the economy in Munich
Joe Kaeser is at the top of the list with Siemens as the largest industrial group in the city, with 370,000 employees worldwide, and the largest stock market value of 83 billion euros. The technology group has over 30 different locations in Munich alone. The global company is divided into its four business areas, such as energy, medical technology, industry, infrastructure and cities. Since its foundation in 1847, as a former institute for telegraph construction, Siemens is now represented in 190 countries around the world.
When the Second World War resulted in the loss of plants in the Soviet occupation zone and abroad, Bavaria was named as the company’s new headquarters. The previous headquarters in Berlin was no longer an option due to the uncertain political developments and its geographical uneconomical location. After the war, Siemens was realigned. The energy and power plant division proved to be a fast-growing business field. The core field of telecommunications became the leading provider worldwide due to the reconstruction of Germany. The immense technological structural change forced Siemens to give up a large part of its core areas.
The market leader in the armaments company product sector is KMW, founded in Kassel in 1882. The company has its origins in the Munich locomotive factory of Joseph Anton von Maffei, which was founded in 1838 and was very important for the economy in Munich. In the 1930s, the company developed its first military products. Today, KMW is synonymous with world-leading technologies for protected wheeled and tracked vehicles. More than 30 countries belong to the permanent customer base and rely on the performance and reliability of these unique systems. The product range extends from main battle tanks to artillery air defence systems, from comprehensive protection of drivers and truck cabins to rapid fire weapons.
Decades of experience and continuous research and development ensure that the name Krauss-Maffei-Wegmann guarantees quality and safety. But KMW also has to deal with criticism. Because KMW also knows that the golden age when East and West no longer have to worry about the costs of an arms race is over. The armed forces in Europe are becoming smaller. So is the market for battle tanks in the EU and NATO. At least that is to be hoped.
The Bayerische Motoren Werke AG
BMW has been producing vehicles and engines since 1922. With a turnover of 80.4 billion and around 116,000 employees, the BMW Group is one of the largest commercial enterprises in Germany. Since the 1960s, the name BMW has been synonymous with comfortable equipment paired with sporty standards, especially for the upper salary bracket of car buyers. However, BMW does not only stand for the sale of luxury sports cars, but also invests very successfully in research.
At the North American accident center, BMW engineers work together with trauma experts from the medical field. These teams produce biomechanical accident analyses that can better determine the causes of injuries from collisions. Between 20,000 and 34,000 BMW employees in Munich already work at the Group’s research and development center. In addition, there are supplier companies with about 10,000 other employees. The plan is to create up to 15,000 new jobs around the Research and Innovation Center (MIZ) in Milbertshofen by 2050 which is also very important for the economy in Munich.