German industry competitiveness hits record low in 2026 index

The 2026 Alvarez & Marsal (A&M) Competitiveness Index for Germany has reached a new low of 3 points, marking a significant decline from 21 points in 2024 and 11 points in 2025. The index, produced in collaboration with the Deutsche Gesellschaft für Managementforschung (DGMF), indicates that no investigated industry has shown signs of recovery.

Only 35 percent of companies currently rate their competitive position as high or very high, while 51 percent view Germany as an industrial location critically. Key challenges cited include high energy and labor costs, regulatory burdens, global competitive pressure, and shifting value chain structures.

Despite the decline, 65 percent of companies are increasing measures to boost competitiveness. Industry leaders are focusing on cost reduction, speed, production networks, and artificial intelligence as primary drivers for the next phase of transformation.