According to a survey, the high energy prices are forcing more and more companies in Germany to reduce their production or even to give up entire lines of business. A total of 16 percent of industrial companies felt compelled to take appropriate steps, the German Chamber of Industry and Commerce (DIHK) announced on Monday. In the case of energy-intensive companies, the proportion was twice as high at 32 percent.
“These are alarming numbers,” said DIHK President Peter Adrian. The persistently high energy prices are a burden for Germany as a business location.
According to the survey, a quarter of the companies particularly affected by the high energy prices have already reduced production or relocated production to other countries. Another quarter are currently taking these steps, the DIHK explained. Half of the affected companies are in the process of planning a reduction or relocation of production.
According to the DIHK survey, the situation for many companies could continue to deteriorate over the course of the year. In July 2022, many companies would still have to procure gas on the markets for the rest of the year. Only half of the industrial companies have already covered their entire gas requirements for 2022 through contracts, more than a third of the companies still have to buy more than 30 percent of their gas requirements.
“Due to the current situation on the energy markets, this results in a considerable cost and supply risk for the companies in the coming months,” warned Adrian. In addition, many companies are now realizing that they cannot pass all of the price increases on the energy markets on to their customers. The DIHK surveyed around 3,500 companies.