Consequences for the economy: The metal and electrical industries in Bavaria face major challenges

Consequences for the economy: The metal and electrical industries in Bavaria face major challenges

According to a report by www.pnp.de,

The majority of the outstanding orders have been processed, but then things get tough. This is a summary of the situation of Bavaria's metal and electrical industry (M+E), the largest industry in the Free State with almost 900,000 employees. The winter economic survey found that companies are investing abroad while domestic investment is declining.

Business investment activity has a significant impact on the economy and the labor market. According to the survey, every second company invests primarily abroad, while only every seventh company invests domestically. This suggests an exodus of investment from the domestic market, which could mean long-term job losses and a deterioration in the economic situation. The industry expects continued stagnation in domestic production, which could lead to a decline in employment.

Bertram Brossardt, general manager of the Bavarian metal and electrical employers' associations, is calling on the federal government to create a reliable location policy in order to stimulate investment activity domestically. The policy is criticized because it creates uncertainty, particularly through a halted federal budget and a lack of reduction in bureaucracy. This leads to frustration and uncertainty in the economy.

The current business situation is assessed as negative and there are warnings about progressive deindustrialization. This could lead to an increase in unemployment if left unchecked. The situation is worrying as only 14 percent of the companies surveyed want to grow in the country.

Developments in the metal and electrical industry not only affect the industry itself, but also the entire economic sector. Urgent policy measures are needed to promote domestic investment and stop deindustrialization.