BDI Report 2025
German industry between crisis and opportunities for action
German industry is in crisis. According to the Federation of German Industries (BDI), the business location is facing a dramatic low point. "The business location is in free fall, but the German government is not reacting decisively enough," says BDI President Peter Leibinger.
The figures speak for themselves: the BDI expects industrial production to fall by two percent in 2025. This means that production will fall for the fourth year in a row and shrink for the ninth quarter in a row.
"This is not an economic dip, but a structural decline," says Leibinger. Industrial production is still far below the peak of 2018, and German industry is continuously losing substance. In the third quarter, production fell again by 0.9% compared to the previous quarter and by 1.2% year-on-year.
Between global risks and national inaction
The structural problems come at a time of global uncertainty. Trade conflicts, protectionist tendencies, volatile energy prices and disrupted supply chains are putting companies under additional pressure. Energy-intensive sectors such as chemicals, steel and mechanical engineering are feeling the strain in particular.
Leibinger points to the responsibility of politicians: "Germany now needs a turnaround in economic policy with clear priorities for competitiveness and growth. Every month without decisive structural reforms costs further jobs and prosperity and massively restricts the state's future scope."
The message is clear: without targeted investments, a reduction in bureaucracy and measures to ease the burden, industry is at risk of losing further substance. The BDI is calling for investments to be given priority over consumer spending and for the special fund to be used transparently for additional investments.
Need for action as an opportunity for the industry?
Leibinger names specific levers in the current industry report: "Reducing bureaucracy remains an untapped growth driver. A noticeable reduction would be an economic stimulus program at zero cost. The relief cabinet was a good start. But now companies need far-reaching relief that they can really feel in their everyday lives. We have over 250 concrete proposals."
The urgency is obvious: those who act now can stabilize German industry, secure jobs and prepare the location for the future. Those who wait and see risk cementing the loss of substance and global competitive disadvantages in the long term.
The crisis in industry is more than just an economic challenge. It is a social one: Jobs, training paths and regional stability are closely linked to industrial performance. At the same time, it is clear that global competition is not waiting. Countries that are quicker to embrace digitalization, modern production technologies and sustainable energies are securing their market share.
Can Germany afford to hesitate? The situation is serious, but at the same time it offers the opportunity to set a new course so that the industry can gradually return to a more stable growth path.









