Frankfurt am Main – Large parts of the industry are stuck in an economic slump. One ongoing problem is the lack of corporate strategies and investment in sustainable business areas. However, those who invest in domestic locations come out ahead. This is the finding of the latest survey conducted by IG Metall among its works council members.
Compared to fall 2024, economic prospects have stagnated: 45% of companies describe the outlook for the next three to six months as currently “good” to “very good” (2024: 43%). This contrasts with 47% reporting poor or very poor prospects (2024: 50%). Likewise, the level of short-time work remains unchanged: Nearly one in five companies (18%) must reduce working hours, at least partially, due to a slump in orders (2024: 20%). The mechanical engineering and steel sectors are particularly hard hit.
Christiane Benner, President of IG Metall, expressed concern: “Industry is currently moving toward recovery at a snail’s pace. Workers need quick and unambiguous signals from policymakers that the framework conditions are becoming clearer and better. Boost electric mobility; lower energy costs. Companies must get out of this slump and take action!”
The chairwoman further emphasizes that support measures must not be phased out: “Where short-time work helps, it must continue to be available. We need all the bridges we can get.”
Challenges: Lack of framework conditions, lack of corporate strategies
High energy prices continue to pose problems for companies: 43% see their competitiveness as strongly to very strongly threatened as a result, particularly in the steel industry (82%), metal production (66%), and automotive manufacturing (59%). Compounding this issue is U.S. tariff policy: 20% of companies are discussing relocating production to the U.S.; 8% are already making concrete plans to do so.
In half of all companies (49%), IG Metall works council members consider employment to be secure in the coming years. The situation is most stable in other vehicle manufacturing (71%; aerospace, trains, ships) and in the skilled trades (63%). Car manufacturers and suppliers, as well as the steel industry, are showing signs of uncertainty, with only 31% and 41%, respectively, reporting good job prospects.
The strategy and employee involvement of companies affected by economic change remain extremely lacking. Not even 45% of companies under pressure to adapt have a transformation strategy to move their locations forward. Only 38% discuss and develop issues related to innovation and the production of tomorrow with their works council.
“This makes me seriously angry! How little innovative spirit and self-respect can an entrepreneur or manager have that we haven’t seen any improvement here in years? No forward-looking strategy, no understanding of new business models? That’s disappointing. If more companies would involve their works councils appropriately, they wouldn’t have this problem in the first place!” the union leader said angrily.
Future-oriented sectors must be developed more vigorously
At least some companies have already identified sustainable business sectors as viable and profitable: One-third (31%) of companies already offer products and services aligned with a climate-neutral industry, and one-fifth (21%) plan to do so. Overall, 43% of companies investing in climate protection already view these investments as profitable, while another 44% expect to see profits from them at least in the medium term. This is already particularly profitable in the rail, shipping, and aerospace sectors (64%) and in electrical engineering (53%), and least so in the automotive industry (32%) and the steel sector (19%).
“We need to get into the fields of the future,” Christiane Benner emphasizes. “Where that’s happening, things are at least slowly moving in the right direction; we need to significantly step up our efforts. We also need to tap into new industries with full force: the circular economy, batteries, recycling, artificial intelligence—the opportunities are there!”
Current efforts are not yet sufficient to ensure sustainable employment: Only 47% of works council members estimate that their companies’ sustainable business segments will maintain or expand the number of jobs at their companies.
Background/Methodology:
The works council survey was conducted online between September 8 and 26, 2025. Employee representatives from across Germany in the sectors covered by IG Metall (e.g., mechanical engineering, automotive manufacturing, electrical engineering, skilled trades, and IT) participated. The survey represents 2,623 companies with a total of over 1.3 million employees.
Further information and press photos of Christiane Benner
