Impact on Berlin economy as well

War in Ukraine: Survey among Berlin companies

Since 24th February, the army of the Russian Federation has been seeking to conquer Ukraine and since this date war has again been raging in Europe. In order to obtain as complete a picture as possible as to how Berlin's business community is affected by this situation and to formulate recommendations for implementation to responsible institutions, Berlin Partner has been surveying managing directors of Partner-for-Berlin companies, key account companies and district target companies since 4th March. 

The results show (as of 15th March), that the impact is noticeable but manageable. Just under one-fifth of the companies surveyed felt a direct impact on sales. Thirty percent of the companies surveyed are affected by supply chain issues and about one-third expect to be impacted as a result of SWIFT restrictions. For six percent of the companies, the crisis has an acute impact on the skilled labour situation.

Many companies express particular concern about energy supply, security of supply and price increases. To quote one respondent, "the current development of energy prices is causing massive distortions because this price development cannot be passed on to customers at the same rate. To address this, temporary aid will be required to ensure the existence of the companies." The availability and price development of other raw materials, such as grain or wood, is also often an issue. 

Dr. Stefan Franzke, Managing Director of Berlin Partner has this to say, "the initial results of our survey of companies in Berlin are depressing. The situation is not dramatic, but it is becoming clear once again that the effects of the invasion of Ukraine have long been felt in Berlin as well. One the one hand, in terms of economic impact. And on the other hand - and this is very encouraging - Berlin companies are responding to the Ukraine war and the resulting wave of refugees with overwhelming sympathy. Far more businesses than those who responded to the economic impact survey are asking how they can help and support. Once again, Berlin can be the city of freedom and set an example for the peaceful resolution of conflicts. The Greater Russian Empire that Vladimir Putin fantasises about also fell in this city, with the Berlin Wall."

Voices from the industries:

Medical Technology
"No export restrictions on medical devices heading to Russia."

Wood processing
"We purchase some ranges of our raw material wood to a large extent from Ukraine [...]. We are now cut off from raw material supplies in these areas and therefore expect major problems in pallet production [...] On the other hand, Germany is once again exporting sawn timber on a large scale, mainly to America. Supplying the domestic economy must take priority over exports." 

Automotive supplier
"We are a supplier to the automotive industry. Car manufacturers are facing massive supply chain problems and consequent cuts in production volumes due to the closure of supplier plants in Ukraine as a result of the war. As a result, we expect significant order cancellations (> 30%) for our complementary parts for the period of months. Here we will need support, for example, through the extension of the 'Corona bridging grants'."

Expectations and voices on various topics: topic areas

Energy supply and safety
"Further increases in energy costs would break our backs as a manufacturing industry in the long term. Therefore, we ask for support in this area. We do local value creation, we're a local employer, and we can't influence the energy issue at all."

Commodity markets and supply chain
"Creating independence from existing commodity supply chains." 

Reception and integration of refugees
"Supporting companies that accept Ukrainian specialists as employees."
 

All relief efforts will be collected at www.berlin.de/ukraine.