According to a study by the Leibniz Institute for Economic Research at the University of Munich (Ifo Institute), German machinery and equipment makers are struggling to gain market share.
According to Nicolas Bunde, an industry expert at the institution, “German producers of machinery and equipment are experiencing fiercer competition, mainly from China, in sales areas outside the EU [European Union]. From minus 7.3 in April to minus 14.3 in August, the competitiveness survey score decreased.
According to an IFO announcement, this was the lowest level seen since data gathering for these statistics began in July 1994.
The value last reached this low point (minus 10.6) in January 2009, during the height of the financial crisis. Competitiveness dropped to a negative 8.5 points in the EU markets and a negative 4.1 points in the German home market.
The manufacturing of machinery and equipment is frequently constrained by a lack of qualified laborers and a scarcity of crucial intermediate goods, according to 40% of the enterprises questioned.
In the machinery and equipment industry, which in Germany is dominated by medium-sized businesses, the lack of competent people is a particular concern, according to Bunde.
The majority of workers in production are elderly, and their younger coworkers rarely enjoy working shifts. Rural areas are also home to equipment and manufacturing industries. In this situation, businesses must become even more appealing as employers if they hope to draw qualified candidates from the major cities.
A few businesses have already relocated their production overseas. Deindustrialization, however, cannot yet be discussed, the announcement continued.
