Ifo: German machine manufacturers are losing competitiveness

The German Institute for Economic Research (Ifo) has published the results of the German Business Survey on the competitiveness of German machinery and equipment manufacturers.

Consequently, the competitiveness survey score, which was -7.3 points in April, decreased to -14.3 points in July.

Thus, the poll score in question fell to the lowest level since records began in July 1994. The poll score fell to a similarly low level, minus 10.6 points, during the January global financial crisis. of 2009.

According to the survey data, the competitiveness of German machinery and equipment manufacturers on the EU markets decreased to -8.5 points, while on the German market it decreased to -4.1 points.

LABOR SHORTS AND INTERMEDIATE PRODUCTS

Meanwhile, 40 per cent of surveyed machinery and equipment manufacturers in Germany stated that shortages of skilled workers and important intermediate products often limit their production.

“In sales markets outside the EU, German machine and equipment manufacturers face tougher competition, especially from China,” said Nicolas Bunde, Ifo specialist for machine and equipment manufacturers. he used the phrase.

Bunde stated that the shortage of skilled workers in the production of machinery and equipment, dominated by SMEs in the country, is a particularly big problem, saying: “It is the duty of policy makers and society to improve this situation.” he made the assessment of it.

Nicolas Bunde underlined that rising energy and raw material costs have long been a handicap for Germany as a business location.

On the other hand, the ifo report states that those who work in the production of machinery and equipment in Germany, while younger and older workers rarely prefer to work in shifts: “In addition, manufacturers of machinery and equipment are located in rural areas . Companies here have to make more attractive offers as employers if they want to attract suitable staff from big cities.” expressions were used.

In the Ifo report it stands out that the manufacturers of machinery and equipment face the difficulty of adding to the sale price the growing costs of energy and raw materials: “Some companies moved their production abroad.” However, it is too early to talk about deindustrialization in Germany. German machinery and equipment manufacturers are becoming highly specialized service providers.” the evaluation was carried out. (AA)