The German supplier industry is under massive pressure. The predominantly medium-sized companies in the ArGeZ sectors are experiencing severe job and production losses:
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Jobs: More than 22,000 jobs were cut in 2024, and in the first half of 2025 a further 31,500 jobs have already been lost.
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Production: Output fell by 5% in 2024, and by another 3.7% in the first half of 2025.
Many companies are relocating production abroad, closing plants, or filing for insolvency.
“Politicians must now initiate reforms, otherwise Germany will lose its unique supplier landscape,” says Christian Vietmeyer, spokesperson for the Supplier Industry Working Group.
Current Challenges
Supplier companies producing in Germany are hit particularly hard:
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Low capacity utilization
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Weak order books
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High costs and rising pressure from Asian competitors
The combination is eroding the competitiveness of Germany as a production location.
Political Demands
To safeguard the supplier industry, ArGeZ calls for urgent reforms to improve the framework conditions:
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Reduction of labor costs
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Lower energy prices
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Cutback of bureaucratic compliance costs
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Alignment of costs to European standards
Only by reducing these burdens can factories in Germany remain competitive with foreign suppliers and continue to invest.
The upcoming Auto Summit must therefore focus on:
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Preserving the breadth of the value chain
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Implementing measures to strengthen the competitiveness of SMEs in the supplier industry
Contact
Christian Vietmeyer
Spokesperson, Supplier Industry Working Group (ArGeZ)
cvietmeyer(at)wsm-net.de
About ArGeZ
The Supplier Industry Working Group (ArGeZ) represents around 9,000 supplier companies, primarily SMEs, with approximately one million employees and a turnover of €244 billion.
Supporting trade associations include:
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WirtschaftsVereinigung Metalle e.V., Berlin | www.wvmetalle.de
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Bundesverband der Deutschen Gießerei-Industrie e.V., Düsseldorf | www.bdguss.de
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Aluminium Deutschland e.V., Düsseldorf | www.aluminiumdeutschland.de
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Wirtschaftsverband der deutschen Kautschukindustrie e.V., Frankfurt a.M. | www.wdk.de
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Verband Technische Kunststoff-Produkte e.V., Frankfurt a.M. | www.tecpart.de
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Wirtschaftsverband Stahl- und Metallverarbeitung e.V., Düsseldorf/Hagen | www.wsm-net.de
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Industrieverband Veredlung-Garne-Gewebe-Technische Textilien, Frankfurt
Source: www.aluminiumdeutschland.de
