New Economy Forum
Germany’s Economic Backbone Suffers From Soaring Power Prices
Mittelstand companies weighed down by higher electricity costs are struggling against competition from U.S. and China
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Bosses at a steelmaker in northwest Germany have ripped out old-style lighting in favor of LEDs, tinkered to make machinery more efficient and even locked staff into classrooms to teach them how to save energy.
Across the nation, thousands of companies are doing the same to mitigate the hit from electricity costs that have doubled since 2016. These smaller, often family-run firms are collectively known as the Mittelstand and form crucial links in the supply chains for Germany's biggest firms, employing almost 20 million people and producing more in sales than Spain’s economy.