Stihl Contemplates Leaving Germany's Shores
Stihl, a renowned chainsaw manufacturer based in Baden-Württemberg, Germany, is putting the government on notice. If improvements in the country's location conditions aren't seen by 2030, the company might choose to invest elsewhere. Their initial plan involved constructing a new plant in Ludwigsburg, but escalating costs, excessive bureaucracy, and high labor expenses have given them pause.
In the view of Supervisory Board Chairman Nikolas Stihl, Germany has taken a significant hit in competitiveness, urging for immediate change. It's a pressing issue, and if not addressed, Germany could be in a precarious position, according to Stihl.
Switzerland is a potential alternative location, despite its higher wages. The lower labor cost might come as a surprise, owing to the country's longer working hours and less burdensome bureaucracy. Stihl already has a 50-year history of producing chainsaws in Switzerland.
Despite the trend towards battery-powered tools, Stihl remains optimistic about gasoline-powered chainsaws. They're investing in the development of eco-friendly fuels, aiming to curb CO2 emissions.
The sources provided do mention broader challenges facing the automotive sector, potentially impacting other industries as well, with traditional manufacturers like Stihl reporting sales decreases and workforce reductions[1]. However, they do not specifically address Stihl's concerns in Germany or the locations it's considering for investment due to these challenges. Additional sources or Stihl's official communications would provide more insight into their competitiveness and investment strategies[2].
The economic challenges faced by traditional manufacturers like Stihl in Germany could lead to a shift in investment locations, as indicated by their consideration of Switzerland. If the current economic conditions in Germany do not improve, it might negatively impact Stihl's growth prospects.
