Opinion Poll - Around 20% of metal manufacturers consider moving their production elsewhere.
Disturbing statistics from the northern German metal and electrical sector: in a recent economic survey carried out by the employers' unions, nearly a fifth of businesses are planning to move some or all of their production overseas. Nordmetall's President, Folkmar Ukena, reported to the German Press Agency, "This is one of the highest rates ever reported in our economic surveys, showing that soaring labor and energy expenses, alongside the continued growth of bureaucratic hindrances, are driving companies away from the country, wiping out jobs and economic growth in the north."
The study involved 141 companies with approximately 95,000 employees from Hamburg, Schleswig-Holstein, Mecklenburg-Western Pomerania, northwestern Lower Saxony, and Bremen. Companies in automobile manufacturing, aerospace, and foundries are primarily considering these moves. The main reason for this is the challenging working environment. Specifically, 80% of the businesses stated that labor costs were unbearably high, 72% that energy costs were too high, and 70% that there was an overabundance of administrative burden. Additionally, 60% of all northern German metal and electrical firms identified labor shortage as a worsening economic factor, while 50% pointed to new laws and international politics.
"Almost three-quarters (71%) of company managers state that Germany's attractiveness as a business destination has further deteriorated in the last half-year," said Ukena. Just 22% of these businesses desired to increase investments over the previous year, while 31% wanted to reduce them, and 47% wanted to maintain the status quo. However, companies did notice some improvements in the availability of labor. A year and a half ago, 84% complained about poor or insufficient availability, but now, only 63% do. Additionally, the availability of apprentices dropped from 74% to 63%.
"The northern German metal and electrical industry also urgently requires lower energy prices and a bureaucratic relief offensive," Ukena added. Minimal progress is still being made in this area - be it in Brussels, Berlin, or the northern German state capitals. Superfluous written requirements should be removed, and the digitalization of offices for the immigration of skilled workers or the reduction of paperwork for new business start-ups should be enforced. "This is the only way we can continue being a powerful metal and electrical industry in the north," said Ukena.
While making these demands, Ukena also admonished IG Metall. "Any worker who takes to the streets on Labor Day with the slogan 'More pay, more free time, more security' during this crisis doesn't understand the real issues. Jobs and prosperity can only be sustained through more work, low labor expenses, and additional security. This way, we can prevent northern Germany from undergoing de-industrialization."
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Source: www.stern.de
