Germany as a business location in danger: industrial migration has begun!

Germany is facing an intense economic crisis, compounded by a combination of high energy costs, bureaucratic hurdles and a lack of investment. These factors significantly reduce the attractiveness of the location, which leads many companies to relocate their production facilities abroad. According to a report by Mercury the traffic light coalition (SPD, Greens, FDP) has failed in relation to the economic problems. Dirk Jandura, President of the Federal Association of Wholesale, Foreign Trade and Services (BGA), said that this exodus has already begun and described the situation as a bankrupt declaration for Germany as a business location.

Energy-intensive industries such as mechanical engineering, chemicals and metal are particularly affected. Companies like BASF have already started shifting billions in investments to China instead of investing in Germany. Loud Investment Week The middle class is increasingly under pressure and is fighting for survival. Marie-Christine Ostermann, president of an association for family entrepreneurs, warns of an increase in the number of businesses leaving the country if an economic turnaround is not initiated quickly.

Causes of migration

High electricity and gas prices are considered the biggest obstacles to competitiveness, as energy-intensive industries in Germany have to pay top prices. Peter Adrian, President of the German Chamber of Commerce and Industry (DIHK), speaks of a loss of trust among companies in Germany. DIHK also reports a decline in investments, which are around six percentage points below the pre-Corona level. A third of companies plan to reduce their investments.

The bureaucracy and the multitude of regulatory requirements place additional strain on companies. The digital association Bitkom is calling for targeted political support measures to address these challenges, including reducing bureaucracy and a digitalization offensive. The shortage of skilled workers, particularly in the IT sector, is also seen as a serious problem that further limits the competitiveness of German companies.