DIHK: German industrial companies increasingly considering moving production abroad

More and more German industrial companies are considering moving production abroad because of high energy prices and uncertainty over future energy supply security. This is according to a survey whose results were published by the Association of German Chambers of Industry and Commerce (DIHK).

According to the survey, 37 percent of German industrial companies are now considering reducing production or moving it abroad. Last year, the figure was just 32 percent, and the year before only 21 percent. Among industrial companies employing at least 500 people, the share considering cutting or relocating production rose to 51 percent, compared with 43 percent last year.

German industrial companies have come under pressure as a result of the sharp rise in energy prices following the start of Russia’s invasion of Ukraine. Energy prices in Germany have fallen since then, but remain higher than in other countries, Reuters reported.

„The German economy’s confidence in energy policy has been seriously damaged,“ said DIHK Deputy Chief Executive Achim Dercks.

„Politicians have so far failed to offer companies a path towards reliable and affordable energy supplies,“ he added.

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