Northern German Metal Industry Faces Deepening Crisis

A significant number of companies plan to relocate production abroad amid declining orders and high operational costs.

A recent survey reveals that 22% of northern German metal and electronics companies are considering moving production overseas, the highest rate recorded in such surveys.
Nearly 40% of businesses report a shortage of orders, leading to a utilization rate of 82%, the third lowest in 18 years.
The attractiveness of Germany as a business location has decreased for over two-thirds of companies due to high labor, material, and energy costs.
Energy-intensive sectors like foundries and metal manufacturers are particularly affected, with many rating their business situation as unsatisfactory.
Ongoing wage negotiations highlight the need for structural solutions, with calls for government action on tax reforms and energy cost reductions.