Germany’s manufacturing slump is forcing a debate that should catch the attention of Ohio manufacturers. How long can rising costs pile up before they start changing investment decisions?

Mercedes-Benz and Stihl are among the companies pushing to move some workers from a 35-hour week back toward 40 hours without a corresponding increase in pay. Germany’s manufacturing labor costs are reported at €49.5 per hour (about $57.51 per hour), 47% above the EU average, while industrial production has fallen more than 15% from its 2017 peak. Supporters say a longer workweek could lower unit labor costs, while unions argue it would do little to fix deeper structural problems.

“Ohio manufacturers do not operate in a vacuum,” said Dave O’Neil, director of communications for the Ohio Manufacturers’ Association. “Competitiveness usually isn’t lost in one dramatic moment. It gets chipped away by higher costs and harder decisions until companies start putting their next investment somewhere else.” 9/8/2026