A growing sense of unease is gripping German industry, with a significant portion of key sectors questioning their long-term viability, according to a recent Allensbach Institute survey commissioned by restructuring consultancy FTI-Andersch. The findings, reported by “Handelsblatt”, paint a stark picture of declining confidence and potential exodus from the German market.
The automotive supplier sector is particularly discouraged, with 60% of companies reportedly abandoning efforts to secure contracts with burgeoning Chinese automakers, despite their increasing global significance. This reflects a broader concern across the manufacturing landscape, as 51% of machinery manufacturers express apprehension about losing their technological advantage to foreign competitors in the coming years.
Perhaps most alarmingly, a resounding 94% of companies in energy-intensive industries, including chemicals and steel production, fear the prospect of production shifting away from Germany due to crippling energy costs and regulatory burdens. This sentiment underscores a systemic challenge threatening the foundations of Germany’s industrial heartland.
While the government recently unveiled initial measures impacting social welfare programs and infrastructure, the business community remains largely unconvinced by Chancellor Friedrich Merz’s promised “autumn of reforms”. A worrying 51% of surveyed companies predict continued stagnation or even a deterioration of their business performance over the next twelve months, deeply questioning the effectiveness of current government policy and raising serious concerns about Germany’s economic trajectory. The survey highlights a critical need for bolder, more decisive action to safeguard German industry’s future competitiveness on the global stage and its reliance on piecemeal reforms is increasingly viewed as insufficient to address the looming crisis.