SMEs shift investments abroad
The German Association of the Automotive Industry (VDA) conducted a survey of SMEs from May 15 to 23, 2023. 128 automotive suppliers and manufacturers of trailers, bodies and buses were surveyed. Based on these results, the VDA publishes statements on the current situation and prospects of the automotive industry in Germany.
The survey shows that 27 percent of the companies surveyed are planning to relocate investments abroad. Of these, 43 percent would like to move to another EU country and 30 percent to North America. No company wants to increase its investments in Germany.
VDA President Hildegard Müller emphasizes, “The current results show once again how important an ambitious program is for competitiveness and location. The competition does not sleep.” She believes Germany needs a determined and courageous industrial policy that enables new things instead of preventing them.
High electricity prices prevent competitiveness
According to the results of the VDA survey, the proportion of companies suffering from a shortage of skilled workers and employees is 85 percent. 72 percent of companies feel burdened by bureaucracy. These percentages have increased compared to the last survey in February 2022.
The number of companies suffering from high electricity prices has decreased compared to the last survey, but is still very high at 74 percent. According to the VDA, only 59 percent are still challenged by gas prices.
Müller points out that German industry needs internationally competitive energy prices in order to be successful in global competition. 70 percent view the industrial electricity price currently under discussion as positive.
So far, a bridge electricity price is planned, but only for energy-intensive companies. According to the VDA, this should also apply to industrial SMEs.
Arndt G. Kirchhoff, Chairman of the Advisory Board of the Kirchhoff Group, VDA Vice President and Chairman of the VDA SME Circle, says: “Companies […] have taken a whole bundle of measures to increase their resilience.” Now, he says, it is also important for policymakers to ensure change.
Source: www.kloepfel-consulting.com