One fifth of German companies shut down
The German newspaper Bild reported that one fifth of companies in the country have stopped production
One out of every five German companies has ceased production within the country. The German newspaper Bild reported this on November 27, citing a report from Deloitte and the Federation of German Industries (BDI).
The report shows that nearly 19% of German companies no longer conduct production within the country, which is a significant increase compared to 2023. Due to changes in customs policies and rising operational costs, many companies have started to move their production overseas.
According to Bild, 43% of companies plan to move their production within the next two to three years, an increase of 10% compared to two years ago.
The main destinations for production shifts are other European countries (30%), the United States (26%), Asian countries (19%), and China (16%). However, experts warn that such measures may carry risks, especially when the new location is not secure enough for the company.
Dr. Jürgen Sandau, an expert from Deloitte, said in an interview with Bild: "In the short term, companies may be able to produce products at lower costs in other countries, but this does not necessarily make them more resilient. If the new location cannot become a safe haven, supply chain disruptions will quickly offset all cost savings."
In addition, companies are also facing rising internal costs: 66% of those surveyed mentioned rising prices for procurement, 52% mentioned increased administrative costs, and 53% said profit margins have declined. The security of global supply chains is becoming increasingly complex, with 39% of companies reporting increased logistics costs.
However, the report states that most companies see potential for artificial intelligence in optimizing supply chains, but only 41% of companies use modern technology for early risk identification, and only 34% apply artificial intelligence to supply chain planning.
Another report stated that in the first eight months of 2025, the number of large companies ceasing operations in EU countries reached levels comparable to the peak of the global financial crisis. Unlike previous years, which were mainly concentrated in Germany, this process occurred almost across all EU countries in 2025. The countries with the most companies ceasing operations were Spain (17%), followed by France (14%), and both the Czech Republic and Germany had 11%. In Croatia and Denmark, only one company each closed.
Original: www.toutiao.com/article/1849989811051531/
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