"It is concerning that high energy costs are now not only burdening ongoing business operations but also preventing future investments," said Peter Adrian, president of the DIHK.
Nearly 20% indicated they are either planning to reduce output in Germany or move manufacturing overseas, or have already taken such steps.
In 2026, the Energy Transition Barometer, which measures the energy shift's impact on competitiveness, dropped to -11.5, a three-point decrease from the previous year and the first such fall since 2023. The index spans from -100 (extremely negative) to +100 (extremely positive).
These findings highlight a deepening challenge for Germany's industrial sector, which has historically depended on affordable energy. The combination of geopolitical shocks and the domestic push toward renewables has created a particularly tough environment for manufacturers. If the trend of firms considering capacity cuts or relocation accelerates, it could erode the country's industrial base over time. The barometer's decline, the first in three years, signals that companies see the energy transition as an increasing competitive disadvantage, even as they support its long-term goals.
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Energy costs in Germany have surged lately because of several reasons: natural gas scarcities caused by Russia's invasion of Ukraine, higher oil costs linked to the conflict between the US and Israel against Iran, and the country's shift toward renewable power.
The business association demanded reduced levies on power, more transparent rules for building infrastructure, and a major cut in bureaucratic red tape.
"Companies support the goal of climate neutrality," Adrian said. "At the same time, they face energy costs that are increasingly becoming a disadvantage in international competition."
The DIHK survey, conducted annually, provides a consistent gauge of business sentiment regarding the energy transition. The latest results indicate that the combination of high energy prices and regulatory burdens is causing a significant number of firms to reconsider their investment plans in Germany, a trend that could have long-term consequences for the country's industrial competitiveness.
The DIHK conducts its Energy Transition Barometer survey annually among its member companies, which span manufacturing, services, and retail. The latest results reflect growing unease among business leaders about the long-term viability of Germany as a production location, especially for energy-intensive industries like chemicals and metals. The survey also highlights that while most companies support climate goals, the pace and cost of the transition are raising concerns about competitiveness.
Germany's industrial sector, long reliant on stable and affordable energy, now faces a critical juncture. The combination of the Ukraine conflict, the US-Israeli war on Iran, and the domestic push for renewables has created a perfect storm. The DIHK barometer's first decline since 2023 underscores the urgency, as firms weigh the viability of continued production in Germany against the appeal of lower-cost locations abroad.
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