Industrial policy: “Otherwise we will see how de-industrialization will continue”

Hamburg is considered a trade and service metropolis – but in fact the Hanseatic city is also a large industrial location, even on a European scale. Airbus, Shell, Lufthansa Technik, Aurubis, Trimet, Körber and Jungheinrich are just some of the best-known names, plus numerous medium-sized companies. All of them – around 600 companies in total – are represented by the Hamburg Industrial Association, whose chairman Andreas Pfannenberg made no secret in the interview that he was pleased about the end of the traffic light coalition.

WORLD ON SUNDAY: What hope do the Hamburg Industrial Association and the family businessman Andreas Pfannenberg attach to February 23rd?

Andreas Pfannenberg: First of all, it is good that we now have a relatively close date for the federal election. We must not fall into a decision-making vacuum in our situation. But even after election day, the formation of a government must continue quickly because we need important and reliable political decisions.

Jerkin: The industry in particular tends to plan over longer periods of time – why the rush?

Pfannenberg: Because Germany has fallen significantly behind in important areas in recent years. After the budget ruling of the Federal Constitutional Court, nothing more was actually possible. We quickly need a clear picture for the design of energy prices. How will network fees work out – and in the long term, so that we also have planning security for the industries? These questions must be answered quickly by politicians.

Jerkin: Otherwise …?

Pfannenberg: : Otherwise we will see deindustrialization continue. This is the result of a stalemate like the one we experienced with the traffic light government. Production is now ten percent below the level before the pandemic and the Ukraine war. The energy-intensive sectors have even lost over 20 percent. There is no problem of knowledge, but rather an implementation problem. An example: The aim is to phase out coal in 2030. However, there is not a single approved gas power plant today that can replace coal capacity. And it takes at least seven years from planning to construction for such a gas power plant, so it can no longer work. This means that when the phase-out comes in 2030, it will further worsen the problems because we no longer have a base load

Jerkin: After all, Chancellor Olaf Scholz (SPD) recently invited the industry to a summit…

Pfannenberg: …no one took that seriously anymore. Everyone went there because that's what they were supposed to do, but without any belief in real change. At least not in the traffic light coalition. I therefore expect a new government to listen better from the start and understand what is really necessary. And then act accordingly.

Jerkin: As a Hamburger, you experienced Olaf Scholz as mayor. What was his relationship with the industry back then?

Pfannenberg: Significantly better, there was a lively exchange. With today's Senate, the “Industry Master Plan” was recently updated. But Scholz did not show the strength at the federal level that he showed here in Hamburg. Especially in the eyes of the Greens, the industry is a hindrance that is supposedly torpedoing the climate change. The opposite is the case, the companies in our industry have a huge interest in saving energy. Nevertheless, almost every approval process is delayed as long as possible. This is completely different in many other countries. And if your own apple tree is withering away, but your neighbor's bears ripe fruit, then you're better off harvesting there.

Jerkin: Let's look ahead: You've already touched on some points, but is there such a thing as an order? What is particularly important to you?

Pfannenberg: Planning security is at the top of the agenda. We need a decisive change of course in economic policy. The rapid deindustrialization must be stopped. Taxes must fall and work must become worthwhile again. Bureaucracy must be consistently reduced. In addition, a secure and affordable energy supply is essential to ensure the competitiveness of the industry. In short: We need more courage and trust in the market economy again.

Jerkin: What else exactly is at stake? The word deindustrialization was mentioned earlier.

Pfannenberg: This is not just a blatant horror scenario. Not all industries are affected equally. But we really have to worry about the chemical industry and the entire basic industry. Many of the production processes that are directly linked to each other are being relocated abroad. Once they tear apart such a chain, the other processes will not become any more competitive. And we see the same thing with copper, steel and aluminum manufacturers, which would also affect the Hamburg location.

Jerkin: If we look at the global market: a new US government under Donald Trump will want to reorganize some things here. Does that concern you?

Pfannenberg: We will have to deal with it, his agenda is known. Now it depends on the specific design. The environment is becoming significantly more difficult for companies that export primarily to the USA. But for those who already have their own production sites there, it shouldn't be any more problematic. More value creation will be transferred to the USA – and that is Trump's goal. However, this cannot be done overnight; little of it will be achieved in the four years of his second presidency.

Jerkin: Things are different with the punitive tariffs he is announcing.

Pfannenberg: True, but if, as announced, imports from China are subject to a punitive tariff of 60 percent and those from Europe 20 percent, that would actually strengthen our companies' market position. One thing must also be seen: We are strong in mechanical engineering and automation – and in these sectors there are no significant competitors who produce exclusively in the USA.

Jerkin: Would you recommend adopting a more pragmatic and less moral economic policy when dealing with the USA and the Trump administration?

Pfannenberg: After Trump's re-election, we know that the old transatlantic alliance, which was also based on certain values, no longer exists. Only economic strength makes us independent – and that is only possible with pragmatism. The companies themselves have long had their own governance, their own guardrails that steer in the right direction. For example, no one builds a factory anywhere anymore and relies on child labor or exploitation as a performance factor. We don't need a supply chain due diligence law, which primarily entails further bureaucracy. You can also simply trust the companies more.

Jerkin: You yourself have run a family business in the electrical industry for a long time and produce components and system solutions for control cabinet air conditioning and signaling technology. Today you lead the supervisory board. How is your company getting through this time?

Pfannenberg: The topic of innovation is very important to us. We now also have several production locations abroad and try to produce locally for each market. Overall, we are coping well with this. And I would like to conclude with this: The potential of the German economy is huge; the future prospects could – as in other growing economies – also be aimed at growth and prosperity in Germany. It is high time to restart the turbo of the German economy. The whole country needs to get off its ass now.

Andreas Pfannenberg has been the chairman of the Hamburg Industrial Association since June 2024 – but the entrepreneur became known to a wider public in 2015 when Pfannenberg GmbH, based in Allermöhe, was founded “Family Business of the Year” was chosen. Pfannenberg received the award from Olaf Scholzmayor of Hamburg at the time. The company, founded in 1954 by Otto Pfannenberg, is active in numerous areas of electrical engineering and also ensures, for example, that the Parisian Eiffel Tower is so beautifully illuminated at night. Andreas Pfannenberg, born in 1957, studied electrical engineering and is the father of a daughter.