Medium-sized companies are suffering from energy costs and want to increase prices

three-phase meter

Medium-sized companies have to deal with the energy prices – many want to increase the prices.

(Photo: dpa)

Frankfurt, Berlin Rising energy and raw material costs are increasingly becoming a burden for Germany’s medium-sized companies. “Above all, the extremely sharp rise in prices for many raw materials and preliminary products as well as the ongoing supply bottlenecks are causing medium-sized companies more and more concerns and risks,” determined the DZ Bank and the BVR banking association based on the results of their most recent medium-sized company survey by the German Press Agency present. “As a result, the vast majority of medium-sized companies feel compelled to increase their selling prices.”

More than 80 percent of the more than 1,000 companies surveyed – and thus more than ever since autumn 2013, when this topic was first asked in the survey – are concerned about the extremely high prices for energy and materials.

According to the information, never before have so many companies intended to raise their prices since the survey began in 1995: 69 percent of medium-sized companies in Germany want to raise their prices in the next six months, and less than two percent want to lower them.

While companies see the corona pandemic less and less as a business risk, the war in Ukraine and the associated economic upheaval are depressing the mood among German SMEs. The survey concludes that the number of pessimists now predominates.

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Not only have business expectations clouded over since the previous survey in autumn, SMEs in all sectors – with the exception of the electronics industry as well as the chemical, pharmaceutical and plastics industries – also assess the current business situation as weaker overall this spring than they did a good half ago Year.

“The many uncertainties in the market mean that medium-sized companies want to keep liquidity in the company,” explained Uwe Berghaus, board member for corporate customers at DZ Bank. “We actually need a real investment offensive. Especially when it comes to the topic of the century, sustainability and technological innovations, companies have to spend money now in order to remain competitive in the future.”

A glimmer of hope according to DZ Bank and the Federal Association of German Volksbanken and Raiffeisenbanken (BVR): SMEs were able to close 2021 with solid business figures. “The robust balance sheet quality is a solid starting point for medium-sized companies,” said BVR board member Andreas Martin. “It makes me optimistic that companies will ultimately weather the second global crisis in a row well.”

More: Between normality and bunker – Many German companies in the Ukraine are producing again

Handelsblatt energy briefing