Medium-sized companies are increasingly planning to relocate production abroad
Quick Look
According to the KfW internationalization report, almost a third of German medium-sized industrial companies are planning to relocate their production abroad in the next five years, driven by Chinese competition and US tariffs, while foreign sales have been stagnating since 2022.
AI-generated summary
Why It Matters
The KfW Internationalization Report is based on a survey of 1700 companies in January, including 600 foreign-owned enterprises. It shows that as many as 8 per cent of the medium-sized industrial enterprises operating abroad have moved parts of their production abroad over the past five years.
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What to Watch
AI outlook — possibilities, not facts
The number of medium-sized industrial enterprises moving their production abroad will continue to rise over the next five years unless there are substantial improvements in locations.
Likely · Within years
Open Questions
- What specific sectors within SMEs are most affected by relocation plans?
- How do the plans differ between East and West German firms?
- What policy measures do the companies themselves propose to improve the site?




