Cheap Energy Is No More
If you want to build and maintain a modern economy for your country, you are going to need a lot of energy in the form of electricity. As we all know, this electricity is fed to all the various machines from virtual machining centers to molding machines to assemble robots.
But of course, before this electricity can be used, it first needs to be created.
The fuel that is used to create electricity in Germany has traditionally been nuclear and coal with a splash of wind energy. But starting back in 2011, Germany pledged to start shutting down their Nuclear power plants as a part of their green initiative.
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Business Is Leaving Germany
With the increase of energy in Germany, it was only a matter of time before the manufacturing market started adjusting to the new environment. As of 2023, German companies announced 185 capital projects in the United States. 73 of those are in the manufacturing sector. Some of those companies include some of the largest companies in Germany including Volkswagen and BASF.
Like all businesses, German companies tend to go where the business is, the business climate is favorable, and it doesn't hurt if costs are low too. With over 700 million dollars invested into Texas, 33 million into North Carolina, BASF is clearly putting money where they believe the investment will pay them back.
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