📊 According to a new report by Deloitte and the Federation of German Industries (BDI), U.S. tariff hikes are putting the squeeze on Germany's manufacturing giants. In fact, nearly two in three companies have already relocated production abroad or are planning to do so soon! 🌍💼
Here are the key takeaways:
- 1 in 5 firms have already moved factories overseas — that's up 8 points in just two years.
- 43% plan to shift production abroad within the next 2–3 years, up from 33% in 2023.
- 30% aim to move product development abroad, while 35% expect to carry out research outside Germany.
Where are they heading? Europe is still a favorite, accounting for about 30% of planned moves. But Asia is on the rise: 16% are eyeing the Chinese mainland and another 19% are looking at other Asian markets. 🛫🌏
However, there’s a catch. Companies may achieve short-term cost advantages by producing elsewhere, but this does not necessarily make them more resilient, warns Juergen Sandau, a supply-chain expert at Deloitte. Disruptions and rising costs could quickly eat into those savings. 🚨🔧
The report also highlights the growing sting of protectionism on supply chains. Over half (53%) of respondents reported moderate increases in supply-chain costs, while 39% described the spike as severe or extremely severe. 💸
As U.S. tariffs reshape global trade routes, German industry faces tough choices: chase lower costs abroad or invest in resilience at home. Which path will they pick? 🤔✨
Reference(s):
U.S. tariff hikes deepen pressure on German industry, survey shows
cgtn.com
