Survey: German Industry Grapples with Rising Costs, Energy Uncertainty

The survey, conducted by the German Chamber of Industry and Commerce (DIHK), involved around 3,300 companies and showed that 18 percent of all respondents are considering slashing output or moving their operations overseas, up from 11 percent in 2022.

This trend is particularly pronounced among industrial companies. In 2022, 21 percent of these companies reported such considerations, rising to 32 percent last year, and now to 37 percent.

Among energy-intensive companies, the proportion of those planning production restrictions or relocations has increased to 45 percent. For industrial companies with more than 500 employees, the figure rose to 51 percent.

According to the survey, excessive bureaucracy, slow approval processes, and the lack of predictability in energy policy are the main challenges facing these companies.

"The confidence of the German economy in energy policy has been severely damaged," DIHK Deputy Managing Director Achim Dercks said, adding that the government had not succeeded in offering companies a perspective on reliable and affordable energy supply.

"Companies continue to see significantly more risks than opportunities for their competitiveness. In view of the importance of industry as a key sector for the entire business location, these are clear alarm signals," he warned.

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