DIB Trend Survey 2015
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.
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.”
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.
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.
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 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.
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.
The clear majority (over 60 percent) of the respondent companies speak for Germany bringing the following in a more competitive shape in the international setting: tax law rules for venture capital, growth financing as well as fiscal incentives for research promotion. Eliminating further fiscal obstacles to innovation is also very important to the surveyed companies. This includes, inter alia, introducing the possibility of tax loss carryforwards without limitation in terms of time or amount.
Please note: In the download section at the top ot this page, you will find an overview of indicators for German (core) biotech companies 2014 according to the source biotechnologie.de. Additionaly, you will find the trend forecast for the complete German biotech sector for the overall year 2015.
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