Structural changes in the economy also having repercussions for companies

The effects of the energy transition as adopted and approved by the German government are also feeding through to companies. Siemens, for example, is now responding to the structural transformation in fossil power production and has announced a restructuring of its activities in this area. The objective is to increase the utilisation of the plants and expand efficiency by bundling resources. To achieve this, the company is also to cut back 6,900 jobs, half of which are in Germany. A dramatic structural change lies behind this decision. A drastic reduction in demand for large gas turbines (>100 megawatt) can be noted worldwide: Estimates reckon with approx. 100 turbines per annum as normalised level, with capacity lying at around 400 turbines.

All in all, this market development is a reflection of the changes in the ecological attitude to power production. The latest forecasts on global warming at the 23rd Global Climate Summit of the United Nations in Bonn have once again shown the need for a visible restructuring of power generation to be undertaken in the years ahead.

The fact that these economic necessities – which also mean especially painful measures for the people concerned – are not receiving positive support from politics is regrettable. Instead, the attempt is being made to exploit this so that the parties can position themselves at the expense of companies. I consider this to be most unfortunate.

Germany as a location for business activity needs competitive companies that can also hold their ground in international competition. This also includes the need for companies to be able to adapt to structural changes. If this is no longer possible in Germany in the necessary extent, the country will become less attractive as an investment location. In the medium term this will be cost jobs and prosperity.

 

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