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More German companies prefer to invest abroad – survey

Almost one-third of the country’s industrial firms are planning to relocate production overseas or cut domestic output, according to a commerce group

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More than half of German companies believe that the transition toward renewable energy and away from Russian gas will harm their businesses, according to a survey by the German Chamber of Commerce and Industry (DIHK).

The DIHK’s energy transition barometer survey issued on Tuesday showed that on a scale of minus 100 (‘very negative’) to plus 100 (‘very positive’), the barometer value is -27, the worst result since the survey was launched in 2012.

“The confidence of German business in energy policy has currently sunk to a low point,” said DIHK deputy managing director Achim Dercks. “Worries about their own competitiveness have never been greater.” 

The research also showed that the percentage of companies considering leaving the country is on the rise. Almost one-third of industrial companies are planning to relocate production abroad or to reduce it domestically, double the 16% figure from last year. Among those, 5.2% have already implemented measures to relocate or cut production, 10.5% have measures in progress, and 16% have plans in place.

“In view of the great importance of industry for Germany as a business location, these figures are alarming,” Dercks warned.

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Many German companies are strongly concerned about an inadequate energy supply, even in the medium and long term, he noted.

The commerce chamber polled more than 3,500 companies from all sectors and regions in Germany.

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