Germany’s Chamber of Industry and Commerce (DIHK) has cautioned that high energy prices are increasingly threatening to have negative consequences for Germany as a centre of industry in Europe.
Citing a survey of businesses, the DIHK said the trend of industrial companies moving out of the country is becoming ever more pronounced.
According to the survey, four out of 10 industrial companies are currently considering limiting their production in Germany or relocating it abroad entirely due to high energy costs.
A German News Service (GNS) report delivered by dpa, revealed that among larger industrial companies with more than 500 employees, over half are considering such a move, saying no fewer than 3,300 companies participated in the survey.
Deputy Managing Director of DIHK, Achim Dercks, noted that politicians have not yet succeeded in providing companies with prospects for a reliable and affordable energy supply, adding: “While many companies also saw opportunities in the (green) energy transition for their own business in the years before 2023, the risks clearly outweigh the opportunities in their view.”
The DIHK believes the growing plans to restrict and relocate production, coupled with actual relocations, show that the energy policy location conditions are now a clear competitive disadvantage for all companies in Germany.
This is particularly true for industrial companies with high electricity costs and for large companies, for example in mechanical engineering and the production of industrial goods.
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The DIHK called for taxes on electricity to be reduced. The permanent reduction in electricity tax for the manufacturing industry provided for in the government’s growth package should be extended to all sectors.
Meanwhile, German logistics and delivery giant DHL reported second quarter net profit of €744 million ($802 million), a decline of 23.9 percent from a year ago, as a sluggish global economy dampened demand.
Chief Financial Officer (CFO) of the company, Melanie Kreis said in a statement on Thursday that “Air and ocean freight volumes further improved in the second quarter from a low starting level. However, we are not observing a broad-based recovery of global trade yet.”
Operating profit was below the prior-year level at €1.35 billion compared to €1.7 billion, while second quarter revenue rose by 2.7 percent to €20.64 billion.
The DHL Group confirmed its forecast for fiscal 2024. It anticipates EBIT of between €6 billion and €6.6 billion.
For the medium-term forecast for 2026, the Group continues to expect an operating profit of between €7.5 billion and €8.5 billion.
“Thanks to our unique logistics portfolio we are well prepared for when global trade regains momentum,” Kreis said.
