In the coming year, many companies will no longer be able to pay their electricity bills, says the boss of the automotive supplier Elringklinger and warns of a wave of bankruptcies. The manager has never experienced cost increases like the current one. But he also sees an advantage for his industry over others.
According to the German supplier industry, a wave of bankruptcies is threatening because of the rapidly increasing energy and material costs. “In the first half of 2023 we will see many insolvencies because companies can no longer pay their electricity bills,” said Stefan Wolf, head of the Elringklinger supplier group, in an interview with “Automobilwoche”. In the past 25 years he has never experienced such massive cost increases. In addition to energy price increases, the prices for plastic granulate or steel have increased drastically.
There is only limited compensation from customers, according to Wolf, who is also President of the Gesamtmetall employers’ association. “We’re trying to get compensation for the cost increases from the manufacturers. We’re quite successful at that, but of course not 100 percent. The costs are reflected directly in the result,” said Wolf.
In addition, the trade union demands for eight percent more wages for twelve months weighed on the industry, they were “out of the world”. Inflation is easier to manage with the already high wage level in the metal and electrical industry than with a much lower one, such as in nursing or retail. The manager emphasized that securing jobs must have priority.
