German Manufacturing Firms Expect Negative Consequences from Iran War

(MENAFN) A large majority of German manufacturing firms anticipate negative consequences from the ongoing Iran war, with roughly 90% expecting disruptions to their operations, according to a recent survey by a Munich-based economic institute. Only a small share—about 9%—reported no immediate concerns regarding the conflict’s impact.

Commenting on the findings, Klaus Wohlrabe said: “The conflict impacts manufacturing directly but above all causes major uncertainty. Many companies are preparing for additional burdens in the coming months.”

The survey indicates that rising energy costs are the primary concern, cited by 78% of respondents. Additionally, 36% pointed to supply chain challenges, including disrupted shipping routes and difficulties obtaining raw materials and intermediate goods.

Other risks highlighted include potential interruptions to air cargo, flagged by 16% of companies, while nearly a quarter expect weakening demand in key export markets. Financial uncertainties are also a growing concern, with businesses warning of fluctuating logistics costs, higher insurance premiums, and increased payment risks.

Wohlrabe added: “The results make it clear that the economic consequences of the Iran war can already be seen now, and could be compounded via various channels. The longer the uncertainty lasts, the greater the economic problems will be for the companies.”

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