Nearly one-fifth of German industrial firms scaling back due to energy crisis
NEARLY a fifth of companies in the German industry sector have responded to the energy crisis by scaling back production, found the latest DIHK business survey of 24,000 companies on Tuesday (Nov 1).
In total, 14 per cent of all firms surveyed said they would reduce their production or offerings in the face of skyrocketing energy costs, with 17 per cent of industry-sector firms planning such a move.
Energy-intensive manufacturers were particularly affected, with 27 per cent of those in the chemical industry and 30 per cent in the glass, ceramic and stone processing industries saying they scaled down.
The survey also found that about every 12th industrial company – 8 per cent – plans to shift production due to the rising costs, particularly those that manufacture vehicles, at 17 per cent.
Nearly 60 per cent of companies overall said they wanted to pass on most of their increased energy costs to customers. That number jumps to over 70 per cent for industrial and construction firms.
The German government is scrambling to mitigate the effects of energy costs driven up by the war in Ukraine.
As part of a planned “brake” on gas prices proposed by an expert commission, which is expected to be adopted largely as is, companies that benefit must meet conditions such as staying in the country or preserving 90 per cent of the jobs they provide for a year. REUTERS
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