Allensbach Study: Majority in energy-intensive industry expect exodus / Companies see strategic options in Germany largely exhausted

• 56 percent of energy-intensive companies feel under strong or very strong pressure from non-European competitors
• 20 percent report difficulties in accessing credit – with immediate consequences for investment and employment
• 33 percent have already established production capacities outside Europe, with a further 11 percent planning to do so.

In recent years, companies have implemented extensive measures to reduce their energy costs. 93 percent are implementing energy efficiency programs. 86 percent have their own energy generation facilities, such as photovoltaics, wind power, or combined heat and power. And 68 percent have concluded long-term direct supply contracts with energy producers. Forty-one percent have established emissions trading management, while other companies are not planning to do so. At the same time, 83 percent report a deterioration in predictability, with 67 percent reporting a significant deterioration. In this group, 46 percent have already postponed investments.

“Companies have made very consistent use of traditional business levers: efficiency, self-generated electricity, long-term contracts, and cost control,” says Karsten Schulze, board member and partner at FTI-Andersch, FTI Consulting's consulting unit specializing in restructuring, business transformation, and transactions. "The Allensbach data clearly shows that these measures alone are no longer sufficient for many companies. A positive outlook: In our consulting practice, we are seeing many owners and managers who are now prepared to tackle even more significant transformations. The reality is that most companies have no other choice in the current situation."

One in five (22 percent) companies is currently relocating production steps abroad or planning to do so in the near future.

The study shows that structural adjustments have gained significant momentum. One in three companies (30 percent) is reducing or eliminating particularly energy-intensive products. One in five companies (22 percent) is relocating production steps abroad or making concrete preparations to do so. At the same time, many companies are developing a new location logic: a total of 33 percent have already established production capacities outside Europe, and another 11 percent are making concrete plans to do so – particularly in Asia.

“Product reductions or relocations are a conscious step toward making the company more robust – through a focused portfolio, lower energy risks, or a more flexible international production architecture,” says Karsten Schulze. "They are not a sign of resignation, but rather of a conscious realignment. It is crucial to actively shape such steps and not wait for conditions to improve on their own. Resilience can be built through location diversification and a clear prioritization of core products."

Competitive pressure from outside Europe, financing, and uncertainty are increasing the pressure to transform

More than half of energy-intensive companies (56 percent) report strong or very strong competitive pressure from non-European suppliers, who often benefit from lower energy prices, government subsidies, or less regulation. To remain competitive, 91 percent of companies are investing in automation and digitalization, two-thirds (66 percent) are relying on specialized engineering solutions, and 71 percent are using quality and origin strategies such as “Made in Europe.” A smaller proportion are also focusing on shorter development cycles: one in four (24 percent) are already using “fast engineering,” and another seven percent are planning to do so.

“It is noteworthy that the majority of these measures are no longer future plans, but have already been implemented,” says Karsten Schulze. "Under the existing conditions, this leaves only a few additional options for response. This makes it all the more important to set clear priorities and establish decision-making capabilities—while combining operational measures, technological levers, and strategic location issues. Companies that achieve this triad early on significantly increase their chances of staying on a stable course despite all the challenges."

In addition to competition and energy prices, other external factors are placing a noticeable strain on companies. Twenty percent report more difficult access to debt capital. Where this is the case, 77 percent are postponing investments and 47 percent have recently cut jobs or are now planning to do so. In addition, 83 percent see their ability to plan ahead as having deteriorated, the majority of them significantly. 43 percent of industrial companies are strongly or very strongly affected by increasing global protectionism.

“When energy-intensive production stages migrate abroad on a large scale, the architecture of supply chains inevitably shifts,” says Karsten Schulze. “This also affects companies that continue to produce in Germany: they have to adapt their procurement channels, risk architectures, and capacity planning. This creates new dependencies – but also new opportunities, for example through international partnerships or a stronger focus on higher-value, less energy-intensive stages of the value chain.”

Methodology

For the German Economic Pulse 2025 – State of German Industry, the Allensbach Institute for Public Opinion Research conducted a telephone survey of 169 German industrial companies on behalf of the management consultancy FTI-Andersch. The focus was on the energy-intensive industry (64 companies), mechanical and plant engineering (58), and automotive suppliers (47). The sample includes both medium-sized companies (67 with sales < €100 million) and corporations (102 with sales > €100 million). Around 80 percent of the interviews were conducted with board members or managing directors, the rest with budget-responsible heads of finance, strategy, and sales – the results thus reflect the assessments of top management.

About FTI-Andersch

FTI-Andersch is a management consultancy that supports its clients in the development and implementation of sustainable future, performance, and restructuring concepts. FTI-Andersch actively supports companies that are facing strategic, operational, or financial challenges and change processes – or that want to align their business model, organization, and processes for the future at an early stage. Its clients include, in particular, medium-sized companies and corporations that operate internationally. FTI-Andersch is part of the FTI Consulting Group (NYSE: FCN) with more than 7,900 employees worldwide.

www.fti-andersch.com