Family-Owned Companies -Mittelstand- in Germany Are Facing Trouble in Major Export Markets
Many family-owned companies in Germany are facing trading problems as a result of the economic decline in India and China. A lot of further concerns are based on possibilities – what effect will there be if Great Britain leaves the EU if there are problems with Russia.
Many family-owned companies in Germany are facing trading problems as a result of the economic decline in India and China. A lot of further concerns are based on possibilities – what effect will there be if Great Britain leaves the EU if there are problems with Russia. The Mittelstand* is bracing itself for orders that don’t arrive or ones that get cancelled.
The issues do not affect Daimler, BASF or other large corporations as they can see further ahead and are still investing in the future. The problem is that the Mittelstand* makes up 98% of the companies exporting and they are affected by fears for the future and the drop in the commodities and stock market. There are reports that growth may dip below the forecasted 1.7%.
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Mahr CEO Stephan Gais claims that issues with Russia and fear of terrorist attacks are causing problems along with domestic investment delays. He feels 5% growth is realistic but does not plan on growth investment. An LFO Economic Institute survey showed that last year showed a major loss of confidence.
Expectations for the future is below zero and according to Klaus Borger of KfW Bank, it is news reports rather than actual economical events and trends. Micro—cap companies are also showing caution but blue-chip businesses are not so concerned Daimler, for instance, is investing in a future of electric cars.
Borger also believes that there is not a recession looming. Employment and wages are high and asylum seekers accommodated. However, Mario Ohoven – BVMW Mittelstand President wants more government investment and support.
*Mittelstand commonly refers to small and medium-sized enterprises in German-speaking countries, especially in Germany, Austria and Switzerland.
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Helena Marsh
Helena Marsh is the Editor-in-Chief at TrendinTech, where she leads editorial strategy and oversees coverage across artificial intelligence, cybersecurity and enterprise technology. With more than a decade in technology journalism on both sides of the Atlantic, she previously served as a senior editor at Wired UK and covered the technology sector for The Guardian, following the rise of the big platforms, the Cambridge Analytica scandal and the regulatory push from Brussels and Washington. Helena holds an MA in Journalism from City, University of London and is a regular speaker at Web Summit in Lisbon and CES in Las Vegas. She believes technology reporting should be rigorous and plainly written, so readers understand what actually changes for them rather than what a company's announcement promises.
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