CAPTION: Südwestmetall association sees industry facing major challenges. (picture alliance/Rupert Oberhäuser)
The head of the Association of the Metal and Electrical Industry Baden-Wuerttemberg (Südwestmetall Verband), Joachim Schulz, is forecasting a difficult year for the industry in the south western German state. "The forecasts for 2024 are only slightly better, and the mood in many of our companies is rather depressed," Schulz told dpa in the state capital of Stuttgart. Urgent investments in future technologies and the promotion of innovation are now also being called into question due to austerity measures in the federal budget, he said. Should these fail to materialize, the latest forecasts even predict further stagnation or a renewed contraction - both for the economy as a whole and for the metal industry, according to Schulz.
"But I am an optimist and always hope that the forecasts will be exceeded in a positive way," said Schulz. At the end of October, 987,300 men and women were employed in the industry in south-west Germany. This is around 2 percent below the peak levels of 2019, but around 18 percent above 2010, according to the association. Schulz said he does not expect a major wave of insolvencies in the near future. In the industry, less than 1 percent of businesses are affected by the opening of insolvency proceedings each year.
The head of the association explained that the tension in the industry will remain high. The transformation of the automotive industry is in full swing, which is creating massive pressure for change. Digitalization and new technologies such as artificial intelligence meant technological leaps in which companies would have to make huge efforts to remain at the forefront internationally in the future. "Above all, all of this requires considerable investment,” he said. “However, these are made more difficult by the difficult underlying conditions here in Germany, such as high energy costs, too much bureaucracy, and an increasing shortage of skilled workers."
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