Ifo: Industrie bangt um Wettbewerbsfähigkeit: „Konkurrenzdruck hoch“

Munich's Ifo Institute revealed in July that over a quarter of German industrial firms are struggling to maintain their competitiveness in markets outside the European Union. Twenty-five point four percent of these companies reported such concerns, according to the institute's survey. Seventeen percent of respondents expressed that the competitiveness of German industrial products on the European market had worsened.

Klaus Wohlrabe, Ifo's survey chief, stated that "Germany's industry still cannot build a solid footing on international markets," emphasizing the "high level of competitive pressure outside Europe."

Just five point two percent anticipate improvements in competitiveness outside Europe, while six point three percent believe domestic competition remains a challenge. The automobile industry is particularly affected, with 43 percent of firms reporting a weakened competitive position in non-EU markets. Similarly, 29.1 percent of metal and metalworking companies, 26 percent in the chemical industry, and 25.5 percent in machinery manufacturing also face deteriorating competitiveness abroad. Even 24.5 percent of electrical equipment manufacturers feel their market position has weakened.

Moreover, many firms face competitive pressure within the EU as well. The automobile industry (24.8 percent) and the chemical industry (22.1 percent) frequently cite worsening competitive conditions. Ifo expert Klaus Wohlrabe noted that "the structural nature of Germany's industrial competitiveness issues means that only short-term economic improvements will have little impact." The beverage industry remains the sole exception, with firms optimistic about improving their competitive stance both inside and outside the EU.

Germany's manufacturing sector has shed 5.29 million jobs in the first half of the year, 144,100 or 2.7 percent fewer than a year prior, according to Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. The rapid intensification of competition with Chinese suppliers in domestic and foreign markets has been exacerbated by the "China shock."