Germany seems to be losing its attractiveness as a business location for companies. As the German Chamber of Industry and Commerce (DIHK) reports, citing a survey among companies, the Energy Transition Barometer, The companies cited high electricity prices and bureaucracy as reasons for this.
Large industrial companies in particular are considering moving abroad
According to the study, 37 percent of companies can imagine limiting their production in Germany or relocating it abroad. A year ago, the figure was 31 percent. Among larger industrial companies with more than 500 employees, more than half are now considering it. According to the DIHK, around 3,300 companies took part in the survey.
Jürgen Kerner, second chairman of IG Metall, told the German Press Agency: “The DIHK study shows once again what has long been obvious: electricity prices in Germany are a problem for jobs in industry.”
German energy policy a “competitive disadvantage”
Politicians have so far failed to show companies a perspective for a reliable and affordable energy supply, said DIHK Deputy General Manager Achim Dercks. “While in the years before 2023 many companies also saw opportunities in the energy transition for their own operations, in their view the risks have recently clearly outweighed the benefits.” High energy prices are increasingly becoming an obstacle to production and investment. In particular, this would affect companies with high electricity requirements, such as mechanical engineering companies and companies that produce industrial goods.
The increasing number of plans to limit and relocate production and actual relocations show that the energy policy conditions for all companies in Germany are now a clear competitive disadvantage, according to the DIHK. Companies are relocating production to France and other European countries as well as to the USA and China, said Dercks.
