Part 3/9:
Alarmingly, signs are emerging that Germany may be approaching a phase of de-industrialization. The country's manufacturing output has been declining, primarily due to soaring energy costs and rising production expenses. As energy prices—especially for electricity and gas—continue to skyrocket, many companies are unable to sustain operations domestically and are considering relocating abroad.
A recent survey by the BDI (German Industry Association) highlighted that nearly 10% of medium-sized firms have had to cut or interrupt production, with over 90% citing energy and raw material costs as existential threats. One in five companies are contemplating transferring all or part of their production to countries with lower costs, accentuating fears of a shrinking industrial base.