Thursday, June 4, 2026

The Decline of Germany Connected To Deindustrialization?

 Deindustrialization in Germany didn't start in recent years....it probably goes back to 1990s, with each year....presenting a 'step'.

Defining it?  The decline in German manufacturing output, employment, and global competitiveness, particularly in energy-intensive sectors like chemicals, steel, glass, and autos......was more prevalent than a complete collapse of industry. 

This 'path' taken....while having deep roots....simply accelerated dramatically due to a combination of policy choices, geopolitical shocks, and structural pressures. And no....while some is just plain bad luck....some of the 'step's' were planned.

I would suggest that things took off around 2010-to-2015 with warning signs emerging.....rising competition from China.....slow digitalization.....high labor/regulatory costs, and infrastructure gaps. 

The Russian natural gas mess, and Covid?   They simply speeded-up the process.

Where things emerge in ten years (say 2035)?  Survival mode will kick in, and I predict around 500,000 to 1-million Germans a year will be exiting....to countries with less issues. 

The key point?  Within three-to-four years....one of the major car-brands of Germany will either shut-down, or exit Germany. At that point, the clock starts to tick.  Might be Opel....might be VW.....might even be Porsche.

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