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German Manufacturers Step Up Plans to Move Production Abroad, Survey Finds

Cost pressures plus protectionism are driving a pivot to Europe and the United States.

Overview

  • Forty‑three percent of firms plan to relocate production within two to three years, up from 33% in the prior survey.
  • Nineteen percent say they no longer produce in Germany, indicating the shift is already underway.
  • Top destinations include other European countries (30%) and the United States (26%), with additional moves to other Asian locations (19%), China (16%) and India (14%).
  • The shift extends beyond factories, with 30% planning to move development and 35% research to foreign sites.
  • Executives cite rising costs and trade barriers; multiple outlets report 68% link planned relocations to tariffs, and BDI and Deloitte urge faster government action and targeted investment.