German industry loses significant ground in international competition, according to its own assessment, a survey by the Ifo Institute for Economic Research revealed on Monday. Twenty-four percent of the companies in January considered their competitiveness against non-EU countries to be low, the institute said.
Even the competition within the EU is becoming harder, according to the survey, with 21 percent of the companies agreeing. Almost no company saw its position against global competition improving.
“A decline in international competitiveness of this magnitude in such a short time has not been observed by us before” said Klaus Wohlrabe, head of the Ifo surveys. “The challenges for the industry to maintain its position in the global competition are enormous.” The loss of international competitiveness affects all areas of the industry.
The automotive industry, which has been losing ground for around two years, is particularly affected. The metal and chemical industries also remain under pressure. In contrast, the beverage industry appears more stable, with its position in the international competition having changed little in recent times.
“The new federal government must urgently reduce bureaucracy, accelerate approval procedures and relieve companies of tax burdens to strengthen competitiveness again. Targeted measures against the shortage of skilled workers are also essential. Now, decisive reforms are needed to prevent the German industry from falling further behind in the global competition” Wohlrabe said.