Frankfurt am Main – Companies in Germany are not investing enough in the future. This is the result of a current IG Metall survey among works councils from 2,596 companies. According to this, half of the companies (50%) tend to invest too little in the locations. In 20 percent of cases, works councils even complain about “significantly too little” investment. The survey represents companies from all IG Metall sectors with a total of over 1.48 million employees.
The risk of relocation is increasing: Instead of actively tackling the current challenges, companies are increasingly questioning locations and employment. 31 percent of works councils see a “high” or “rather high” risk of employment being relocated abroad – four percent more than in a survey in autumn 2023. In the area of vehicle construction, 59 percent see the risk as “high” or “rather high”.
With a view to the requirements of the energy and mobility transition as well as digitalization, the works councils in 36 percent of the companies currently see a need to at least partially adapt the existing business area. Companies need a clear strategic future direction. However, only less than half (48%) of the affected companies have a transformation strategy.
Christiane Benner, First Chairwoman of IG Metall, said: “Our survey results show light and shadow. Some companies are in a very robust position, some with record dividends. Investing domestically must be the order of the day. The employees need security and perspectives.”
The federal government’s most recent budget cuts also conflict with adequate planning security for the transformation. One in seven companies (14%) complain that this has a negative impact on the location, and in the trades even one in three (34%) complains. Although the traffic lights also provided relief in electricity prices for manufacturing companies last year, almost half (47%) of the companies affected by the increased energy prices rate these measures as insufficient. In the steel industry, this is even more than two thirds of the companies surveyed (68%).
The works council survey also confirms a further deterioration in the economy, but this is weaker than before in the course of 2023: In autumn 2023, 54 percent of works councils estimated that the prospects in companies for the next few months were still good or very good, but now the figure is 51 percent. Recently, consumption in particular has failed to support the economy. Benner: “If you want to effectively counteract the risk of recession, you need real wages to rise significantly again this year.”
The works councils are also concerned about a shortage of skilled and skilled workers. 82 percent of the companies surveyed are currently reporting at least partial difficulties in securing skilled workers. Nevertheless, the number of trainees is falling in 30 percent of companies and is only increasing in 14 percent of companies. Benner: “There is movement on the job and training market. It is now important that companies invest in the further training of employees: for their own company, for new business areas or for a neighboring company in the region. Why not think outside the box?” To do this, companies would also have to use the new funding opportunities for qualification from April 1st.
Christiane Benner demands reliable framework conditions from politicians: “Politicians must clearly commit to the industrial location. The government must now set the right course to avoid deindustrialization. Instead of a debt brake and austerity packages, we need an active industrial policy with ambitious public investments, including in infrastructure and education.” For more private investments in the future in German companies, IG Metall is also calling for targeted and conditional funding that provides investment incentives with job security, location guarantees, collective bargaining agreements and the like Link criteria to good work.
Editorial notes: The survey results can be found in PDF.Survey period: February 19 to March 8, 2024Companies involved: 2,596 (1.48 million employees)Sectors: all sectors of IG Metall, including 72% metal/electrical industry and 11% crafts