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German Industry Body Warns of De‑Industrialization as Insolvencies Reach 12‑Year High

DIHK blames surging energy, labor costs, high taxes, heavy bureaucracy.

Overview

  • DIHK chief Helena Melnikov says many Mittelstand manufacturers are shifting production abroad or closing sites.
  • Since 2019, roughly 400,000 industrial jobs have been lost, according to the chamber’s analysis.
  • More than 1,600 industrial firms went insolvent in 2025, the highest tally in twelve years and a warning for Germany’s industrial base.
  • A survey of about 23,000 companies shows only 15% see improvement, with one third planning to cut investment and one quarter preparing job reductions.
  • DIHK forecasts just 0.7% growth in 2026 and says ECB rate cuts to near 2% will not revive investment without domestic reforms on costs, taxes, and bureaucracy.