Surging Energy Costs Put German Industry ‘Really in Danger’

March 13, 2026 - 03:09

The German industrial sector, still grappling with the economic aftershocks of the 2022 energy crisis, faces renewed pressure as global instability sends costs climbing once more. Industry leaders warn that the nation's manufacturing base is "really in danger" from sustained high prices.

Four years after the Russian invasion of Ukraine triggered a historic surge in energy costs, ongoing geopolitical tensions, including conflict in the Middle East, are creating fresh volatility. This new challenge directly undermines efforts to stabilize and revive factory output across Europe's largest economy. The persistent high cost of power and natural gas is squeezing profit margins, forcing difficult decisions on production levels and future investments.

For energy-intensive industries like chemicals, glass, and steel, the situation is particularly acute. Many companies had hoped for a period of stability to recover lost competitiveness. Instead, they are confronted with a prolonged period of uncertainty that complicates long-term planning and risks driving production—and jobs—to regions with cheaper, more reliable energy supplies. The call for accelerated domestic renewable energy expansion and more robust infrastructure is growing louder, as businesses seek a durable solution to secure their operational future.