Part 6/9:
Europe’s energy crisis has hit Germany particularly hard. Energy inflation has driven up electricity and gas prices significantly, prompting many industries to cut back production. Some companies are suspending operations temporarily, while others are actively relocating to countries offering more affordable energy costs, such as Eastern European nations or other low-cost regions.
This exodus threatens to create a ripple effect: as German firms exit or reduce production, supply chains weaken, upstream suppliers increase prices or cut output, and downstream consumers face higher prices. The entire industrial ecosystem is under threat of contraction.