STIHL Chief says Germany lost 15% of industrial production over eight years

Hans Böge, chief executive of STIHL, warned that the German economy faces a severe crisis. He stated that industrial production fell by approximately 15 percent over the past eight years. Industrial employment is declining by roughly 15,000 jobs each month. Private net investment has dropped to almost zero. Companies are primarily replacing worn-out equipment rather than expanding capacity. Böge identified high energy costs, labor costs, and taxes as primary barriers. He argued that falling education standards also undermine the industrial base. He noted that even special depreciation packages introduced by the government have failed to stimulate investment. While geopolitical factors such as US tariffs and Chinese policy present external challenges, Böge emphasized that domestic structural issues are more critical. Recent reform plans for health insurance and pensions were announced earlier this year but do not constitute a full solution to these economic trends.