Frankfurt am Main – Chronic reluctance to invest in the machinery and plant engineering sector is increasingly putting the competitiveness of Germany’s largest employer under pressure. This is shown by the “Trendmelder 2025,” a recent industry-wide survey of works councils conducted by IG Metall. “By putting the brakes on investment, corporate executives are jeopardizing the future viability of one of Germany’s core industries. This could cost thousands of jobs and, in the long term, endanger Germany’s status as an industrial hub,” warns Jürgen Kerner, Second Chairman of IG Metall. “Companies must now stop playing defense and rethink their approach, significantly expanding investments—especially in research and development—to enable urgently needed innovations. It is high time to change course.” To achieve this, the political framework must be established swiftly in Berlin.
Clear Warning Signs: Lack of Investment Leads to Loss of Competitiveness
Only just over half of the works council members surveyed (53 percent) consider the industry’s competitiveness in general to be good or very good. Significantly more than one-third of works council members (37 percent) no longer agree with the statement that the products are competitive. “For a technology industry that relies heavily on exports, this is an extremely alarming development that we will not accept,” said Jürgen Kerner.
From IG Metall’s perspective, this trend is a direct consequence of insufficient investment in recent years. It is all the more alarming that a reversal of this trend remains out of sight: The expected growth in investment, as well as investment in research and development, remains at a low level of 14 percent. Fifty-two percent of companies plan to keep investment at its current low level, while 34 percent even anticipate a further reduction.
Companies’ Strategy Is Harmful to the Industry’s Competitiveness
From IG Metall’s perspective, the measures companies are taking instead are not suitable for driving the industry forward. Thirty-six percent of respondents state that relocations are underway, planned, or have already been carried out in the past 12 months. In addition, 62 percent of companies are facing restructuring or reorganization, are already undergoing such processes, or have completed them in the past 12 months. 29 percent of works councils expect the number of employees to decline over the next 12 months. Among temporary workers, as many as 34 percent anticipate a decline, while 26 percent of temporary agency workers expect a reduction. “These ongoing trends are jeopardizing the very foundation of Germany as an industrial hub in favor of short-term cost optimization by companies,” warns Kerner. “The mechanical and plant engineering sector must launch an investment offensive.”
Policymakers Must Create a Reliable Framework for Investment
In addition to companies, IG Metall believes policymakers have a responsibility: From the perspective of a clear majority (61 percent), excessively high and unreliable energy prices stand in the way of improved competitiveness. 47 percent believe that speeding up planning and approval procedures would improve competitiveness. If red tape were reduced, 64 percent expect competitiveness to improve. Jürgen Kerner: “The Union under Friedrich Merz has a responsibility to quickly form a stable government and address these issues immediately. Companies and workers now need clear signals and a reliable framework for investment in Germany. The new federal government must provide attractive incentives for private investment and invest heavily in infrastructure itself.”
The Trendmelder is an annual survey of works council members in the machinery and plant engineering sector conducted by IG Metall since 2017. It captures their perspective on the industry. This year, it was expanded to include questions on competitiveness. More than 630 works council members participated in the latest survey.
Survey results: Trendmelder 2025
