10,000 bakeries in Germany suffer from an unprecedented lack of energy.
Due to the sharp increase in the cost of electricity and gas required for heating ovens and setting up bread dough production machines, almost 10,000 bread producers in Germany are facing problems that have never been seen since World War II.
The British weekly Economist quoted the Association of German Industry (BDI) as reporting that, currently, the biggest challenge facing the German industrial sector is the increase in energy costs.
“The very essence of our industry is under threat,” said Siegfried Rossorm, president of the German Industry Association. He added, this situation is “poison” for many businesses.
According to the announcement of this association, the price of electricity for next year has increased 15 times and the price of gas has increased 10 times. German industry, which was forced to reduce production capacities in July, has reportedly consumed 21% less gas than the same period in 2021.
According to the study of the consulting company FTI Andersch, smaller companies are more in trouble than large companies; About 25% of companies with fewer than 1,000 employees have had to cancel or reduce their orders or are planning to do so, compared to 11% of companies with more than 1,000 employees. .
Due to the sharp increase in the cost of electricity and gas required for heating ovens and setting up bread dough production machines, almost 10,000 bread producers in Germany are facing problems that have never been seen in Germany after the World War.
A survey by the German Industry Association of 600 small companies found that one in 10 had stopped or reduced production due to high input costs. This is while 9 out of 10 companies have declared that the increase in energy costs and primary raw materials is a big challenge for them.
According to this report, one out of every five companies is considering transferring part or all of its production to another country. Larger companies that use energy-intensive production capacity, such as chemical or steel producers, may move abroad because they have to compete with their competitors in other countries where energy costs are lower. to compete
If energy costs remain high for some time, more than 3 percent of Germany’s energy companies will move abroad, according to Holger Schmieding, chief economist at Berenberg Private Bank.
At the same time, Christian Swing, the CEO of Deutsche Bank, as the country’s largest bank, warned that Germany, as the economic engine of Europe, will face negative economic growth.
According to this German official, the disruption in the supply cycle of goods in the world, along with the lack of labor and the lack of gas and electricity, followed by the rising cost of living, are the main reasons for record inflation in the euro area.
Due to technical problems, Russia has recently reduced gas delivery to Europe through the Nord Stream 1 pipeline, and in the latest action, it has also stopped the remaining 20% of the shipment.
The Nord Stream 1 pipeline passes under the Baltic Sea to supply gas to Germany and other countries; The pipeline was also operating at only 20 percent of its capacity before a three-day shutdown this week for maintenance.
