As of: March 12, 2024, 5:24 p.m
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Sparks are flying in a northern German factory: more and more industrial companies are increasingly investing their money abroad - and avoiding investments within the Federal Republic.
© Klaus-Dietmar Gabbert / dpa
German companies are increasingly investing abroad - and thus saving money and effort at home.
The Chamber of Commerce and Industry sees this as an alarming signal.
Berlin - German industry is increasingly investing abroad purely for cost reasons.
“This is an alarming signal and shows that Germany needs to become more attractive again as a production location,” said the German Chamber of Commerce and Industry (DIHK) on Tuesday in Berlin, referring to a survey of around 1,900 companies.
35 percent of companies with investment plans abroad cited cost savings as their main motivation.
“The last time there was such a high value was in 2008,” said Ilja Nothnagel, member of the DIHK executive board.
For smaller companies with fewer than 200 employees, the proportion is somewhat higher.
“Unfortunately, this is a reaction to the deteriorating economic policy conditions in the country.” Germany has structural problems that the government needs to address.
Manageable investment budgets
But foreign business is often not booming either.
The investment budgets are manageable.
Overall, according to the survey, only 42 percent of companies want to invest abroad, slightly more than in the previous year, but rather below average in a long-term comparison.
Caution is also apparent when expanding existing foreign investments.
Only 30 (previous year: 31) percent are planning to increase the corresponding budgets.
On the other hand, 23 (previous year: 18) percent planned cuts.
DIHK economic expert Jupp Zenzen said that manufacturers of intermediate products and from the energy-intensive industry in particular would invest differently for cost reasons.
There are clearly above-average values in the basic materials and rubber industries, for example.
Foreign investments have actually always benefited Germany as a location, says Nothnagel.
“But the tide is turning: more and more companies are now investing abroad because Germany is too expensive and complicated for them.
They are leaving at the expense of Germany as a location.”
Asia is becoming more important
The Asia-Pacific region - excluding China - continues to gain in importance.
The same applies to Turkey and the Eastern and Southeastern European areas outside the EU.
In North America and China, engagement remains almost unchanged compared to the previous year.
Although the euro zone remains the most important target region for German companies, it is losing some of its importance.
According to the DIHK, in the USA the main role is not played by the huge subsidy program for more climate protection, but rather by the large market coupled with planning security and consumers who are keen to buy.
Both Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) recently described Germany as no longer competitive.
The main reasons are high energy costs, excessive bureaucracy and slow planning and approval procedures.
However, the traffic light parties SPD, Greens and FDP have different ideas about how best to respond to the misery.
(Reuters, lf)