Business: Electrical industry also expects 2025 decline in production

Dlees in the German electrical and digital industry in 2025: The ZVEI industry association expects a minus of two percent in the price-adjusted production of electrical and electronic goods in Germany.

“Germany’s industrial location is over-regulated and too expensive. It hinders entrepreneurial initiative and has lost international competitiveness,” says Zvei President Gunther Kegel.

Too many regulations, too high taxes

Too much bureaucracy brakes innovations that corporate tax pollution must be “reduced to an internationally competitive level”, the ZVEI demands. Electricity prices are also too high: the electricity tax must be reduced to the European minimum rate for all consumer groups – private households, trade, trade and services.

Last year there was plenty of dampers for Germany’s electric and digital manufacturers:

Less manufactured: The price -adjusted production broke up by more than nine percent from January to November for the same period last year. The balance sheet is even worse than the production forecast corrected downwards in October made it possible. For the whole year 2024, after ZVEI capital, sales of around 223 billion euros-after EUR 238 billion a year before, will be sold abroad: electrical exports gave up four percent from January to November 2024. All important sales markets turned into the minus, including the two largest markets of China and the USA. Fewer employees: Most recently, a good 892,000 people worked in the industry in Germany and thus two percent less than a year earlier.

Hope for the new federal government

“In order to avoid another recession year, the upcoming federal government urgently has to act,” warns Zvei President Kegel. “We need an efficiency – not only technologically, but in particular politically and regulatory: less bureaucracy, more freedom for entrepreneurship, more space for innovations.”

Press releases ZVEI ZVEI production forecast 15.10.2024