The Deteriorating Conditions in Lower Franconian Metal and Electrical Industry: Companies Consider Relocation

The metal and electrical industry is a mainstay of the Lower Franconian economy. But it is crumbling: because the situation is deteriorating, more and more companies apparently want to relocate at least parts of their operations.

This emerges from the economic report of the industry association bayme/vbm, which has now been presented in Würzburg. According to this, 65 percent of the companies surveyed state that their site conditions have deteriorated. Expensive energy, high labor costs, increasing bureaucracy and the ubiquitous shortage of skilled workers all contribute to this.

“The framework conditions are getting worse and are a real risk for our location,” Lohr entrepreneur Ingrid Hunger is quoted as saying in a bayme/vbm message. She is the association’s chairwoman for Main-Spessart.

According to Hunger, nine percent of those companies for which the local conditions have deteriorated have “outsourced parts of the added value abroad”. Another 46 percent “are also planning to relocate”. According to Hunger, nine out of ten companies in the region are already reducing their domestic investments. “This development must be stopped,” demanded the Lohrerin.

For 60 percent of the companies, business is “still running smoothly”

Of course, the economic report also has positive news. The earnings situation in the metal and electronics sector continues to be good. Although 12 percent of companies fear a downward slide for 2023, according to the survey, business is “still going well” for 60 percent.

In the course of the year there will be an additional 1,000 employees in the metal and electrical companies in Lower Franconia, according to Hunger, despite the shortage of skilled workers and the sluggish economy. According to bayme/vbm, 92,000 people will be employed in this sector in Lower Franconia by the end of the year.

A look at the willingness of companies to spend money on investments also shows that the signs are generally negative. According to the association, 39 percent of the companies surveyed want to shut down here. The report goes on to say that anyone who is still investing will do so primarily for replacement purchases – i.e. not for additional machines.

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