The energy crisis is becoming more and more of an acute burden, especially for family businesses. Six months ago, only 14 percent assumed that they might have to lay off staff – now it’s 25 percent. More than half want to postpone planned investments.
More and more companies in Germany are considering cutting jobs because of the high energy prices. According to the survey published by the Munich IFO Institute on behalf of the Foundation for Family Businesses, 25 percent are already planning this. Six months ago, the proportion was significantly lower at 14 percent. 57 percent of the 1060 companies surveyed – most of them family businesses – are preparing to postpone planned investments.
“For some time now we have been seeing a gradual shift in industrial value creation,” said Rainer Kirchdörfer, board member of the foundation. “We will only feel this as de-industrialization and loss of prosperity in years – but then irreversibly.” This fatal development in Germany is accelerating. Companies would scale back manufacturing or relocate production to areas where energy costs, taxes, and bureaucracy are lower. Politicians are trying to curb rising energy costs, which is right.
The necessary measures include using nuclear energy as an interim solution for a longer period of time. The expansion of renewable energies must also be accelerated and coal-fired power plants must remain in use. According to the survey, 17 percent of companies say they would give up energy-intensive business areas entirely. Six months ago, only 11 percent had this thought. Twice as many companies (13 percent) as in spring are considering stopping production.
Those who relocate business premises abroad are in the minority. But their number is increasing: Nine percent of companies are planning to do so. Half a year ago it was six percent. In the current year, companies are likely to account for an average of 8.2 percent of total sales on energy costs. According to the information, in 2021 it was only 5.1 percent. In order to at least partially absorb the burden, 90 percent of the companies surveyed stated that they would increase prices.
