Knowledge Society

Because Germany has few natural resources, its economy has had to produce high quality, high technology products and services.

In politics, economics and the media the Germans stress time and again the importance of maintaining a knowledge society, of education as its key resource. Germany‘s high standard of living, its high level of social welfare services, can only be financed if it can continue to develop and market high margin goods and services. The Germans stress, therefore, the need to produce generations of scientists and engineers.

There is consensus across the country on this point. Every chancellor, state governor, head of a major German company stresses time and again how critical it is to stay on the cutting edge of science, engineering, technology. Germany sees itself as the land of ideas, recognizes that its future depends on it producing breakthrough ideas.

Good old watering can

Gardena is located in Ulm, Germany. With approximately 420 million Euros in yearly revenues it is Europe’s leading maker of gardening tools. Owned by the Swedish Husqvarna-Group, Gardena was founded in 1961 by Eberhard Kastner und Werner Kress.

One of Gardena’s products is the Micro-Drip-System. The Gardena website says: “Water your yard the intelligent way!” Watering manually is hard work and it leads to “uneven results.”

The Micro-Drip-System is a great relief, “because you only need to turn on the water (faucet, spigot) or to give the command into the system’s on-board computer.”

“The system does the rest of the work itself.” Instead of watering too much or too little, the grass and plants get just the amount they need as determined by sensors which measure humidity and rainfall.

Gardena tools are so intelligent that they can decide themselves how much water is necessary for even and uniform growth. This also saves water. 

Of course, the question remains if the proud homeowner would not prefer to demonstrate his or her gardening expertise by using the good old watering can.

Warranty, guaranty not the same

Two-year warranty: Set by law in Germany allowing customers to return a defective product. The seller is obligated to either repair or replace the product.

Garantie. Guaranty. The promise, security that something is correct, right, works; a promise by the maker of a product that it functions as advertized; a contractual promise.

Worst Case Scenario. An English phrase used in Germany. The German consumer expects a product to always work as advertised, last long, meet fully their expectations.

German consumers often confuse warranty and guaranty, believing that they can return the product for repair or replacement during the two-year period regardless of the cause of the defect. The law, however, requires the maker/seller of the product to repair or replace a product based only on defects at the time of purchase. Misuse of the product or normal wear and tear are not covered.

If for example a television does not work perfectly after a year, the German consumer typically will return it to the store and demand repair, replacement or their money back. The retailer, however, is permitted to repair the product as often as he chooses without obligation to return the purchase price. Nor is the retailer obligated to supply a replacement product during the time of repair.

The mere returning of a product angers the German consumer. They expect near 100% reliability. Good customer service – friendly, fast, uncomplicated – can help things, but is seldom seen by the German consumer as an excuse for a technical defect. If the problems reoccur, the German consumer will quickly switch to a competitive product. Good technical service is best when it‘s not needed.

Markenprodukte

Markenprodukte. Brand name products: Products which are immediately recognized as excellent based on the name of its producer; often products which are of average quality but remain in the minds of consumers due to constant advertising.

German companies have been exporting high quality products consistently since the end of the Second World War. Their products have gained an international reputation for being very good, often better than their competitors. The Germans view reliability as one of the key characteristics of a well-known brand.

Qualität ist, wenn der Kunde wiederkommt, nicht das Produkt. Quality is when the customer returns, not the product. This well-known saying indicates the importance quality plays in the German product philosophy. A product which does not function perfectly and therefore needs to be returned is an embarrassment to the producer.

Efficient products

Automobiles: Germans like to drive powerful, fast cars and are proud of their Autobahn with its lack of speed limits. At the same time they like to save money. This is reflected in their cars. Over the last twenty years the fuel efficiency of German cars has increased by 20%, while doubling their horsepower.

The VW Lupo 3L TDI is a case in point. It is the first mass produced car which can go 100 kilometers on 3 liters or less fuel, while maintaining the power of others compact cars.

The entire German car industry is constantly increasing the efficiency of its production methods. Most produce only 30-40% of the final product. The rest is developed and manufactured by a complex, sophisticated network of specialized suppliers, many of whom are located right next to their German customers.

Residential homes: Germans focus on building homes which maximize space. German houses tend to be small, certainly in comparison to homes in the U.S., which are twice the size.

German homes are built, and renovated, with an eye on energy conservation. Insulation and electricity efficiency are two of the key goals. And the German government supports these with generous subsidies via the KfW, Kreditanstalt für Wiederaufbau, the Bank for Reconstruction, founded in 1948.

This is especially the case with new construction and renovations, with the KfW offering ten different types of financial support linked to new efficiency technologies. All loans have borrowing rates guaranteed to be lower than the rate of inflation. In some situations, families receive cash payouts as subsidies.

Particularly popular, and subsidized by the government, are solar panels, which save electricity and reduce Germany‘s dependence on electricity produced by fossil fuels.

Water consumption: Since the 1980s ecological groups have been campaigning for less water use, in order to protect the environment and save money. Since then water conservation has become common in Germany. The manufacturers of showers, faucets, toilets, washers, dishwashers and other household appliances have developed and brought to market highly efficient products.

German households save so much water that waste water systems have difficulty keeping themselves clean due to too little waste water moving through the system. Local water works often need to flush through extra amounts of water in order to keep the system clean.

German house

Wirkung. Effect. Wirkungsgrad. Difference between output and input. Wirtschaftlichkeit. Difference between goals reached and resources used.

In most German buildings – residential or commercial – the lights in the hallways go off automatically after a short amount of time. Switches on the walls near the doors and in the middle of the hall allow one to turn the light back on. Germans refer to the lights being on as brennen, burning, as in a candle, oil lamp or burning fuel.

Germany, with 80 million inhabitants and large portions of its territory devoted to agriculture, is the size of the American state of Montana. Germans are well versed in maximizing the use of space. Rarely is there a house or apartment in a German city or town with an attic or basement which has not been renovated for use as an additional bedroom, study or storage space.

German supermarkets, too, are rather compact. As are the packaging of consumers items, often fit to the size of the content. No oversized breakfast cereal boxes or potato chip bags.

During the cold months down blankets at night keep old and young warm and comfortable while the heat is turned down or even off. Down blankets are expensive, but they last for many years.

When walking, cycling or driving by new house construction one can see stacks of insulation material waiting patiently to make their contribution to energy conservation, their necessity legislated by state and local building codes. In fact, the German government provides generous subsidies for renewable energy sources: wind, solar, biomass.

As for electricity-gulping air conditioning, you’ll find very few residential homes outfitted with it. The majority of office buildings allow you to simply open the windows. Hazy, hot and humid weather comes to the northern and middle European climate for only a few weeks a year. The nights always cool down, allowing for buildings to take in natural air conditioning.

Crisis and insecurity

The experiences during, between and after the two world wars continue to exert great influence on German thinking. During both wars the economy was geared fully towards producing armaments. There was little material, money and manpower to supply everyday consumer goods.

The years between the wars were filled with civil war type unrest, weak governments, and several phases of inflation including a dramatic hyper-inflation. The years after the Second World War were marked by hunger, lack of housing, severe winters, high unemployment and a fear of what the future would bring.

The entire West German economy had to be rebuilt. This was achieved surprisingly fast due to the generous and far-sighted help of the Western allies and on the production of high-quality technical products. After nearly thirty years of instability, unpredictability and hardship, there was a strong demand among the German people for reliable, durable, high quality products. The Germans wanted security and predictability.

The German product philosophy has not changed, even though there are few alive who experienced the war years. The experiences were so dramatic that they have been passed on to the younger generations. German products which carry the name Bosch, Siemens or Volkswagen speak to the experiences of both earlier and current generations.

TÜV

TÜV Technischer Überwachungsverein. The Institute for Technical Testing has locations across Germany (and in many countries), applies vigorous testing procedures to products of all kinds. A TÜV certificate is a sign of the highest quality.

Stiftung Warentest. The Foundation for Product Testing, similar to Consumer Reports in the U.S., is an independent, neutral organization which tests critically over 200 products each year. Its standards are among the highest internationally, including all requirements defined by law. The media covers many of the test results.

The quality of a product is its most important characteristic. The testing results produced by TÜV and Stiftung Warentest are considered by Germans to be 100% reliable. Each have been taken to court many times for the critical scores they have given products. Neither organization has lost a court case.

Prussian Reforms

Much of what is Germany has its roots in the Prussian reforms of the early 19th Century. Napoleon‘s rapid defeat of Prussia in 1806/07 led to a deep-dive analysis of what went wrong, of what required reform. The Germans radically changed their agricultural system, their business laws, their military training, and most importantly their system of education.

Public eduction for all was introduced. The universities adopted the Humboldt education philosophy, which stressed free and independent inquiry and teaching. Knowledge quickly became the foundation of a modern Prussian economy and state, in many ways for contemporary Germany.

The Prussian Reforms also addressed state institutions. A system of professional civil servants and a bureaucracy was instituted. Bureaucracy then stood for efficiency and professionalism. The tax laws were simplified and made transparent. The state should function more efficiently and become a motor for positive change.

Germany today remains a rather bureaucratic country, with its scores of civil servants, rules and laws. It is a country where one simply cannot do as one pleases. From the perspective of other societies this is a limitation on freedom. Germans, though, view it as a sign of security and stability. Doing things the right way, punctuality, reliability, predictability, following the rules, bureaucracy. Germany has a 200 year history of these. They are who the Germans are as a people.

Wunderwerk

“Buy yourself a flatscreen tv!” was the advice given by one German graduate student to the other, after the latter struggled to carry his old television – Röhrenfernseher or cathode ray tube television – up several flights of stairs to his new, smallish, apartment. The old tv is, indeed, just that. Twenty years. It belonged to his grandmother, then to his parents.

This Wunderwerk deutscher Ingenieurskunst – wonder work of German engineering – a term once used ironically by a tv repairman – was built by a renowned German electronics company. Siemens. It continues to work flawlessly.

When the Röhrenfernseher – literally tube far see-er – some day gives up the ghost, it will be replaced by a flatscreen tv. But because the age-old German belief in not throwing anything out which still works applies to this truly durable German household appliance, it could see a few more schweißtreibende Umzüge – sweat-inducing apartment moves.

Crazy Germans!

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