“Not everyone understands the situation”
Roland Berger boss sees the biggest economic upheaval to date
March 7, 2024, 11:25 a.m
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The head of Germany’s largest management consultancy sees local companies in a deep crisis. Since this has so far only directly affected a few people, there is still a lack of awareness of it. All sectors are affected. And savings were not enough in this case.
According to the head of the consulting firm Roland Berger, many people are not aware of the difficult situation facing German companies. “The situation is really serious, but not everyone has understood that yet,” says Stefan Schaible. In his opinion, the local economy is even facing the “biggest transformation in its history,” as he said in an interview with “Handelsblatt” explained. Not only would costs simply have to be reduced and staff cut, but at the same time investments would also have to be made – with high interest rates. In addition, the crisis affects all sectors. “It’s a systemic crisis.”
Different industries face different challenges. But “the old desire to be able to play for time and wait and see no longer works for anyone,” Schaible makes clear. “The previous rule that we now cut costs first and then when we earn a lot of money again, we invest in new machines, increase spending on research and development and so on, no longer works. Today we have to do everything at the same time , because innovation is vital for us as an export country.”
So far, the crisis is “still in the sleeper,” states the head of Germany’s largest management consultancy. Because broad sections of the population are not yet affected, although staff are being cut in the current crisis in order to reduce costs. However, due to the shortage of skilled workers alone, this is not a panacea.
No mass unemployment expected
The Roland Berger boss predicts that there will be no mass unemployment in the near future. “In this crisis there will be no massive social pressure through unemployment.” Because many of those who lose their jobs are needed in other companies because of demographic change.” The downside, in the management consultant’s eyes, is that most people are not prepared to make sacrifices in order to counteract the crisis. “It’s still often about more rather than actually combating the crisis.”
The traffic light coalition doesn’t look good to the outside world with its disagreement, says Schaible. In addition, the complexity of their tasks has increased massively. Many decisions are now only possible within a European framework and no longer at national level.
The top advisor would recommend five points to the federal government: “I would fully support the expansion of renewable energies and the hydrogen economy to decarbonize industry, secure the infrastructure, really reduce bureaucracy and promote artificial intelligence. I would also live a life’s lie of the past decades by saying clearly and honestly: We need controlled immigration.”