WSM survey: steel and metal processors invest abroad

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According to a recent survey by the Steel and Metal Processing Trade Association, medium-sized industrial companies are increasingly investing in third countries. 30 percent of the money flows out of Germany, 24 percent outside the EU.

Graph on expansion investments in the metalworking industry
Encouragingly, companies are focusing more on expansion investments. Companies intend to invest almost 44 percent in expanding their capacities and just under ten percent in their energy efficiency (Chart: WSM).
[Translate to English:]
[Translate to English:] Erfreulich: Unternehmen setzen stärker auf Erweiterungsinvestitionen. Fast 44 Prozent der Investitionssummen wollen die Unternehmen in den Ausbau ihrer Kapazitäten und knapp zehn Prozent in ihre Energieeffizienz stecken (Grafik: WSM)

According to the WSM survey, medium-sized industrial companies in the steel and metal processing sector are planning to invest around one billion euros by 2027. This is an increase of 47 percent compared to the years 2016 to 2019. The bad news is that these companies are holding back almost the same amount. Around 200 companies took part in the survey conducted by the Steel and Metal Processing Trade Association (WSM). According to the WSM survey, 70 percent of the capital invested benefits Germany as a business location, while 30 percent flows out. Only about five percent ends up in the EU, with countries outside the European Union benefiting from more than 24 percent. "Politics must become active in order to keep industrial know-how and jobs in the country," therefore demands WSM CEO Christian Vietmeyer.

The plans of the more than 200 survey participants underpin that emigration and deindustrialization are real. "Our facts prove it: A lot of investment capital is leaving Germany because the location conditions are too bad," emphasizes Holger Ade, Head of Industrial and Energy Policy at WSM. Respondents cite the lack of skilled workers, high personnel costs and electricity costs as reasons for their investment decisions. Bureaucracy and legal framework conditions also burden them.

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