German industry faces rising insolvencies and job losses

Germany is experiencing a significant rise in corporate insolvencies and job losses within its industrial core. In the German state of North Rhine-Westphalia, insolvency filings in the first half of the year reached 3,428, a 7.5 percent increase compared to the previous year. This represents the highest level of filings since 2015, with sectors such as transport, construction, and warehousing being particularly affected.

While the number of bankruptcies is rising, the scale of the impact per company has shifted. Data indicates that the affected firms are smaller than in previous periods, resulting in approximately 13,853 jobs at risk—a significant decrease from the 21,274 jobs affected in the first half of the previous year. Additionally, the total financial claims related to these insolvencies fell to 3.7 billion euros, down from 4.4 billion euros.

On a broader national scale, the German Mittelstand (small and medium-sized enterprises) is under severe pressure. Since 2019, companies at the heart of German industry have cut more than 340,000 jobs. Industry experts, including Wolfgang Dinglreiter, President of Gesamtmetall, warn that these employment losses may be irreversible, potentially threatening the long-term industrial competitiveness and specialized problem-solving capabilities of the nation's manufacturing and supply chains.