According to a recent survey by the Federation of German Industries (BDI), around 68 percent of industrial companies plan to shift at least part of their production abroad over the coming years — a striking majority and a clear indicator of the pressure Germany as a business location is under. Around one in five companies already no longer manufactures within Germany today.
Companies cite several key drivers behind this trend: rising energy and production costs, increasing bureaucratic hurdles, and growing burdens from tariffs and trade conflicts, particularly with the United States and China. Energy-intensive sectors, mid-sized firms and suppliers are feeling the impact most acutely.
The potential consequences are severe: The relocation of production and jobs could trigger structural breaks in many regions of Germany. Supply chains may fragment, expertise may migrate abroad, and industrial sites could lose attractiveness — precisely at a time when technological innovation such as AI, digitalisation and green tech should be gaining momentum.
The message is unmistakable: Germany urgently needs measures to address its structural weaknesses — lower energy and operating costs, leaner administration and targeted incentives for domestic production. Without this, the country risks falling behind in costs, competitiveness and innovative strength.
SK
