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A recent report reveals a concerning trend in Germany's business landscape, with 176,000 companies shuttered in 2023 alone. The industrial sector and construction industry are particularly hard hit, showing the highest closure rates since 2004. This data, compiled by the Leibniz Centre for European Economic Research (ZEW) and Creditreform Economic Research, highlights a significant threat to Germany’s economic core.
Empty storefronts in city centers signal a broader issue as closures extend beyond retail and hospitality. Industrial and construction sectors have seen a marked increase in shutdowns since 2021, with a 2.3% rise in total closures from 2022.
Creditreform's Patrik-Ludwig Hantzsch warns that the impact on Germany's industrial backbone is severe. The construction industry saw a 2.4% increase in closures, totaling 20,000 businesses, while the manufacturing sector experienced an 8.7% rise, leading to 11,000 closures—the highest since 2004.
The crisis extends to innovation-driven industries, with sectors like chemical and pharmaceutical manufacturing, machinery, and technology services witnessing a 12.3% spike in closures. In contrast, traditional sectors like furniture manufacturing report fewer shutdowns.
The driving forces behind this trend include high energy and investment costs, disrupted supply chains, labor shortages, and political instability. These factors create a challenging environment for businesses, potentially leading to a silent but impactful deindustrialization.
This is bad really bad
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116 sats \ 2 replies \ @TomK OP 8 Jun
And it's just the beginning. Wait what happens when the labour market collapses
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42 sats \ 1 reply \ @gmd 9 Jun
Do you live in Germany? Do you have an escape plan?
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I fled the country years ago. I live alternately in Spain and in Greece on Crete
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108 sats \ 1 reply \ @SatsMate 8 Jun
With Germany leaving the German mark in the early 2000s, I think it wasn't a wise decision. The European Union makes adjustments to monetary policy unilaterally and by them not having full control - they fall victim to what the other member countries decide.
This is an oversimplified line of thought, but I do think many countries should have thought twice before losing power with their own National Central Banks.
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the introduction of the euro also served the geopolitical purpose of politically containing Germany, which was extremely strongly positioned with the mark. it must be said that this was clearly successful!
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These are worst stats for any country. In fact Germany is witnessing a massive deindustrialization and it will cost the country dearly.
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Buisiness closures....just like during the pandemic. Small businesses are needed to fill in the gaps.
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42 sats \ 0 replies \ @fiksn 8 Jun
Play stupid games, win stupid prizes
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See? It's not all negativity, there IS one indicator raising regarding german industry :D
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