German industrial exports are likely to lag behind the development of world trade this year. The industry association BDI expects exports to grow by around 2 percent, while global trade is expected to increase by 2.5 percent. You lose market share.

“Germany’s competitiveness is dwindling,” BDI President Siegfried Russwurm warned at the start of the Hanover Fair. The BDI called for less bureaucracy from the federal government, like the mechanical engineering sector and the electrical and digital industry.

“German companies think twice about where to invest”

Russwurm assumes a gradual recovery after the Corona crisis and an easing of the delivery problems. But politicians must do more to ensure that Germany’s position does not deteriorate. Climate protection and digitization require better framework conditions for innovations. “We need a reduction in bureaucracy, noticeable tax cuts and a reliable and affordable energy supply.” Above all, permanently too high electricity costs are critical. “It is now the case that German companies are thinking three times about where to invest.”

After the turn of the year, the BDI had expected export growth of just over one percent. In 2022, the increase was almost three percent. The association expects production to increase by around one percent.

“I am confident that the industrial nation of Germany will manage the transformation in the next few years,” said Russwurm. “But the competition is fierce.” There are significant investments outside of Germany. “It’s not a threatening gesture. It’s a reality.”

Mechanical engineering association expects production to fall

The mechanical engineering association VDMA confirmed that it expects a drop in production of around two percent if price developments are taken into account. However, there can be no talk of de-industrialization, said association president Karl Haeusgen. In 2022, a real increase of half a percent was achieved.

Haeusgen also referred to the fierce international competition. “Germany and Europe have to work harder in global competition in order to be able to keep up with other regions of the world,” he said. “We must not rest on the laurels of yesterday.” Points of criticism are, for example, energy that is too expensive, tax policy, too little flexibility in working time regulations and too little targeted research funding.

The electrical and digital industry meanwhile expects better business again after problems caused by a lack of chips, interrupted supply chains and fluctuations in demand during the Corona period. Including the price development, an increase in production of one to two percent is realistic this year, said the President of the ZVEI trade association, Gunther Kegel. So far, the industry had assumed stagnation.

Chancellor Olaf Scholz had already emphasized on Sunday evening that the fair was about central issues for a planned “industrial awakening” in Germany. All necessary investments must be made so that Germany remains a leading industrial nation.

The Hannover Messe was completely canceled due to the 2020 pandemic. In the past two years, it was only available as a digital and reduced edition. A core topic this time is climate protection and the more efficient use of energy.