German industry faces exodus over soaring energy costs
The German Chamber of Industry and Commerce reports that high prices and the inability to plan energy supplies are increasingly becoming obstacles to production and investments for companies in Germany. The organization also notes a growing migration trend among industrial enterprises.
10:59 AM EDT, August 4, 2024
Four of ten industrial enterprises are considering reducing their production in Germany or moving it abroad due to the energy situation. More than half of the industrial enterprises employing over 500 employees are already considering this, reports the German Chamber of Industry and Commerce.
German companies are thinking about relocation
The trust of the German economy in energy policy is severely damaged, comments Achim Dercks, deputy director of the German Chamber.
He added that politicians have not yet shown companies a perspective of reliable and affordable energy supplies.
The number of industrial companies considering restricting production or relocating abroad is steadily increasing: from 21% in 2022 to 32% in 2023 and 37% currently. The trend is above average for industrial enterprises with high electricity costs (2022: 25%; 2023: 38%; 2024: 45%), according to data from the German Chamber.
Dercks points out that opinions show that continuing business operations this way is dangerous for Germany as a business location. Therefore, companies expect politicians to significantly rethink energy policy towards a credible perspective with less detailed control.
