STIHL's Hartmut Schultze calls for immediate German economic reforms to stop industrial decline
STIHL's chief executive argues Germany has lost 15% of its industrial production over eight years and warns that current government plans are insufficient to fix the crisis.
Hartmut Schultze, head of STIHL, stated that Germany faces a severe economic downturn marked by an 18-month period where industrial output remained unchanged, followed by a loss of approximately 15 percent in production over the past eight years. Monthly job losses in the manufacturing sector have consistently reached around 15,000 positions. Schultze reported that private net investment has nearly hit zero, with firms mostly replacing depreciating equipment rather than expanding capacity. He attributed high costs and regulatory burdens as primary drivers preventing new investments, noting that a special depreciation package introduced by the government in mid-2025 failed to alter company behavior. Although external pressures from tariffs and geopolitical tensions exist, Schultze emphasized domestic factors such as elevated energy prices, labor costs, taxes, and declining education standards are responsible. Recent reform proposals covering statutory health insurance, pensions, and taxes were announced earlier this year but were deemed inadequate by the chief executive to resolve these structural issues.
