North Rhine-Westphalia’s Metal and Electrical Industry Looks to 2025 with Great Concern.
According to an unpublished survey by the Metall NRW Association, the majority of respondents expect a more pessimistic outlook for the coming months. Only 15% of the surveyed companies describe their current situation as “good”, down from 19% in the previous year. 48% of the companies are “unhappy” with the current situation, up from 38% the previous year.
The companies surveyed are even more pessimistic about the next six months, with 40% expecting a decline in business, and only 5% expecting an improvement. Many are planning to cut jobs, with 31% expecting a reduction in employment in the next six months, up from 19% the previous year.
Due to the uncertain situation, many companies are increasing short-time work: the proportion of companies with short-time work rose to 27% in the past six months, and is expected to increase to 39% in the next six months. More than every third metal and electrical company plans to put its workforce on short-time work and use the help of the job centers. The federal government has recently relaxed the rules: now a company can receive short-time work benefits for up to 24 months.
The President of Metall NRW, Arndt G. Kirchhoff, said: “The loss of trust in politics is considerable. The failed coalition government has either done nothing or made completely wrong economic and social policy decisions, despite all the warnings.” He sees the biggest problem as energy. “The energy theme remains the key question, whether Germany and thus North Rhine-Westphalia will remain an industrial nation” he warned. “Only if this is solved, I really see chances for a sustainable turnaround. Otherwise, there will be no more investment here – with the consequence of a far-reaching deindustrialization.”
Germany is at the top of the list in terms of strain from electricity costs and network charges, and the medium-term supply security is endangered. “That politics has thought of exit scenarios for many years, not of entry scenarios, has caused severe damage to the industrial nation” Kirchhoff explained.
The President is concerned that 44% of the companies want to slow down their investments at home. “This must shake the politics.” Otherwise, there will be massive wealth losses with consequences for the social systems. Looking at the federal election in February, he demanded: the strengthening of the economy is not the fulfillment of entrepreneurs’ wishes, but the basis for secure jobs. “It’s high time for something to happen” Kirchhoff said.