Metal and Electrical Industry Bleeds 6 Billion Euros, Loses 4K Jobs in Hesse 2024: A Wake-Up Call for Germany
Hesse's metal sector faces declining revenue and employment. - Hessen Metal Sector Experiences Revenue Decline and Job Losses
The metal and electrical industry in Hesse saw revenue drop by a staggering 6 billion euros last year, according to the Hessenmetall association. This debacle claimed 4,300 jobs as well, a stark reminder that high time we tackled these challenges head-on.
“We're fighting knees-deep in global markets wracked by cost-related competitive issues,” says Hessenmetall CEO Wolf Matthias Mang. Low investment rates in the domestic market, coupled with diminishing demand, are the primary drivers of this devastating trend.
The association reveals a 5% decrease in demand compared to the previous year. Without the protective buffer provided by defense goods' demand, the bleak order backlog could've been even more grim. Unfortunately, even contracts secured beforehand go unfulfilled more often than not, further jeopardizing jobs in the M&E sector. Since 2018, the industry has seen over 21,000 jobs vanish from large corporations.
In spite of these harrowing figures, around 198K employees continue to work in Hesse's M&E sector. Last year's revenue was 66 billion euros, a 9% decline from the prior year.
But, let's not blame unsteady international politics for our own shortcomings, urges Mang. With a fresh federal government taking the helm, we need immediate action to reinstate Germany's industrial strength.
Now, let's peer under the hood of Hesse's M&E sector’s woes. The sector faces both national and international challenges, such as skyrocketing energy costs, an unstable electricity supply, the integration of hydrogen economies, shaky investment confidence, unsustainable practices, and navigating complex regulatory landscapes.
Our redoubtable stars will keep shining in the German sky, so long as we seize the reigns and address these concerns promptly. We owe it to our workforce, our industry, and our country to ensure a sustainable future, where innovation arms our pioneers with the tools they need to fight the good fight in the face of adversity.
[1] Fact Sheet on Hesse's Metal and Electrical Industry: Navigating Transition Challenges[2] Hesse's Quest for Sustainable Innovation: Meeting Industry Needs[3] Hydrogen's Role in Germany's Energy Landscape: Opportunities, Challenges, and Perspectives[4] Mapping the Future Energy Mix: Germany's Path to Renewables and Beyond[5] A Reinvigorated Mitigations Strategy: Sustaining Germany's Industrial Competitiveness
- The community policy should address the lack of investment in the domestic market within the metal and electrical industry, a key issue contributing to the industry's current employment policy and revenue issues.
- The employment policy needs to focus on providing support to the manufacturing industry, especially in Hesse, considering the massive 6 billion euro revenue drop and the loss of 4,300 jobs in 2024, as revealed by Hessenmetall.
- The employment policy must prioritize the completion of ongoing contracts in the metal and electrical industry to reduce the backlog and prevent further job losses, as a significant number of contracts are currently going unfulfilled.
- Financial institutions should consider investing in the metal and electrical sector in Hesse, considering the industry's potential for growth and its role in the German economy, despite the recent challenges.
- The employment policy should emphasize the importance of sustainable practices and navigating complex regulatory landscapes in the metal and electrical industry, as addressing these challenges is essential for ensuring the industry's long-term success in a rapidly evolving global business environment.