Four in Ten German Manufacturers Eye Move Abroad on Energy Costs

(Bloomberg) -- Four in ten German manufacturers are considering limiting production or relocating abroad amid uncertainty over the nation’s future energy supplies and crippling bureaucracy, according to a survey.

Energy-intensive firms and those with more than 500 employees are particularly prone to such considerations, according to a report by the Association of German Chambers of Industry and Commerce, with about half looking at curbing production or leaving Germany.

The survey results showed too much bureaucracy and a lack of information on future energy supplies were companies’ biggest concerns.

While German businesses have viewed plans for the energy transition with skepticism for quite some time, the crisis two years ago led to a substantial drop in sentiment. Two thirds of industrial firms now see their competitiveness threatened by high energy costs, the survey showed.

“Companies continue to see far more risks than opportunities for their own competitiveness,” said DIHK’s deputy managing director Achim Dercks. “The feedback shows that continuing as before is dangerous for Germany as a business location. Companies therefore expect a clear rethink of energy policy from politicians.”