Industrial companies envisioning significant workforce reductions, as shown in a recent survey - Industrial businesses consider shrinking their employee numbers
Lower Saxony's Metallurgy and Electronics Industry Faces Economic Challenges
A recent survey conducted by Lower Saxony Metals has revealed concerning trends in the region's metallurgy and electronics industry. The survey, which involved 520 industrial companies, suggests that the industry is facing a challenging economic outlook.
The automotive industry within Lower Saxony is experiencing a particularly severe shortage of orders, with 59% of companies in this sector reporting a shortage, an increase from 47% in June. Thirty-eight percent of automotive companies plan to cut jobs in the coming year, and the industry is particularly pessimistic about an economic recovery.
The survey results indicate a high level of job cuts planned in the metallurgy and electronics industry of Lower Saxony. In the entire industry, 45% of companies reported too few orders, and 28% of companies across the industry plan to cut jobs in the coming year. These figures highlight the need for measures to address the economic challenges facing the industry.
Volker Schmidt, CEO of Lower Saxony Metals, criticized rising social security contributions, lack of social state reforms, and non-competitive energy prices as contributing factors to the industry's struggles. He warned that if current conditions persist, investments in Germany may move elsewhere.
The wind industry in Niedersachsen is also likely to be affected by significant job cuts in the coming months, as concerns about layoffs have increased among union representatives. However, specific details about other industries in Niedersachsen are not provided in the current information.
The survey results suggest that Germany is experiencing the longest recession in its history, with nine consecutive quarters of recession. This ongoing economic struggle is particularly evident in Lower Saxony's metallurgy and electronics industry, where growing concerns are being voiced.
Schmidt highlighted the need for measures to support businesses and jobs in the industry, emphasizing the potential for significant job losses due to continued industry cuts, particularly in manufacturing, which is heavily dependent on the automotive industry.
In conclusion, the survey results underscore the urgent need for action to support Lower Saxony's metallurgy and electronics industry and safeguard jobs in the region. As the industry continues to struggle, it is crucial that appropriate measures are taken to ensure a sustainable economic recovery for Germany as a whole.
