Industry in crisis: 10,000 jobs per month are lost!

Industry in crisis: 10,000 jobs per month are lost!

German industry has been in a constant downward trend in recent years. Loud n-tv Companies have been continuously losing jobs since 2018, with around 10,000 jobs being lost every month. High bureaucracy, energy and non-wage labor costs are cited as the main obstacles hindering the industry's recovery.

In the current podcast “Klima-Labor” with the experts Claudia Kemfert, Sabine Nallinger and Sepp Müller, the worrying situation in the industry is discussed. Nallinger warns that the situation is anything but rosy, and Müller emphasizes that uncompetitive energy prices and high non-wage labor costs are contributing significantly to the misery. A shocking 94% of energy-intensive companies are considering moving out of Germany.

The role of hydrogen

A central theme in the discussions is the need for green hydrogen, which should be produced using green electricity, in order to decarbonize the industry. The steel companies Salzgitter and Thyssenkrupp are pursuing different approaches to hydrogen use, but they agree that without a reliable hydrogen strategy, Germany's competitiveness will suffer. The Handelsblatt reports on the challenges that decarbonization brings with it in the industry. There was recently a round of auctions by the European Commission to promote hydrogen projects, in which 61 bids from eleven countries were submitted. Despite a drop in bids of over 50% compared to last year, it shows that the demand for green hydrogen could rise to up to 500 million tonnes annually by 2050.

The projects submitted offer an electrolyzer capacity of approximately 6.3 gigawatts and could produce more than 7.3 million tons of renewable hydrogen over ten years. However, in order to overcome the challenges, viable business models are required that secure the transport and purchase of green hydrogen.

Consequences for society

The discussions surrounding the loss of jobs and the challenges in industry raise an urgent question: How can the balance between climate protection and the preservation of jobs be maintained? Müller expresses concerns that increasing tensions could arise in society if the industry continues to slide. Kemfert also criticizes Germany's failure in electromobility and, although he recognizes potential in the automotive industry, sees an urgent need for action.

At the same time, the building sector in Germany is responsible for around 15 percent of CO₂ emissions, it is reported KPMG. A law to replace old heating systems with climate-friendly systems is intended to contribute to a drastic reduction in CO₂ emissions by 2030. This shows that not only industry, but also the building sector can be part of the solution to achieve climate goals.

In these turbulent times, it is clear: innovative approaches and cooperation are needed to successfully master the challenges of decarbonization and at the same time secure jobs.