Biotechnology Industry

is Expecting Further Growth


According to the latest trend survey among member companies of the German Association of Biotechnology Industries (Deutsche Industrievereinigung Biotechnologie - DIB), biotechnology companies in Germany are anticipating a slight turnover growth for the 2nd half 2015. This forecast applies however only for industrial and medical biotechnology because plant biotechnology was forced abroad for political reasons.


DIB forecast for industrial and medical biotech industry in Germany: 84 percent of the companies think that business will improve in the months to come. Nearly 20 percent are expecting business to remain at the current good level.





BASF DIB forecast for industrial and medical biotech industry in Germany: 84 percent of the companies think that business will improve in the months to come. Nearly 20 percent are expecting business to remain at the current good level.


Image: © Pressefoto BASF   



Biotechnology companies in Germany are anticipating a slight turnover growth for the 2nd half 2015. This is the outcome of the latest trend survey among the member companies of the German Association of Biotechnology Industries (Deutsche Industrievereinigung Biotechnologie - DIB). 84 percent of the respon-dent companies think that business will improve in the months to come. Nearly 20 percent are expecting business to remain at the current good level. None of the surveyed companies fears a drop in business.


DIB chairman Dr Matthias Braun: "Today, biotechnology is widely used in industrial processes and in the manufacture of new medicines. Therefore, the DIB forecast applies for industrial and medical biotechnology. By contrast, there is no value creation in plant biotechnology in Germany, because such value creation was forced abroad for political reasons."


Turnover

Over 80 percent of the surveyed biotech companies state that their company sales have risen since the beginning of 2015, as compared with the previous year - with foreign business developing somewhat more favourably than domestic business. In the present year, 16 percent of companies keep recording unchanged good business.


Research

Biotechnology is a research-intensive industry. In 2015, just under 68 percent of the respondent companies are planning to further expand their research and development activities. 23 percent intend to keep their R&D budgets constant, while only 9 percent are planning reductions.


Investment

Over 60 percent of the surveyed biotechnology companies want to intensify their investment activities in 2015 by investing in more or larger projects. Roughly one third of companies aim to keep their investment budgets constant in the ongoing year. Only 4 percent are planning to cut back on their investment budgets.


Employment

Employment in the biotech industry has risen somewhat since early 2015. According to the DIB trend survey, 55 percent of the respondent companies have increased their staff. The employment situation has remained unchanged in 45 percent of the companies since the start of 2015. Based on figures by the industry service biotechnology.de, in the year 2014 core biotech companies and the biotechnology arms of large chemical and pharmaceutical enterprises had 37,130 staff in Germany.


Shortage of qualified staff

Now as in the past, almost 70 percent of the surveyed companies have no problems in hiring qualified staff. In some individual cases, it is difficult for biotech companies to find suitable laboratory personnel and technicians (17 percent) or scientists (ca. 15 percent). But a shortage of qualified staff is no overall issue in biotechnology. However, the situation has become slightly less favourable than in the previous year.


Funding

Adequate funding of fixed assets and research and development is essential for innovations in biotechnology. Roughly 80 percent of the surveyed biotech companies state that it is not difficult for them to find own and outside capital. Only some companies mention problems in this respect.



Source: VCI


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