Full Breakdown
Stihl Calls for Sweeping Reforms and Longer Work Hours to Revive Germany’s Economy
9/6/2026, 9:51:23 PM
Core Event
Nikolas Stihl, chairman of the STIHL Advisory and Supervisory Boards and grandson of the company’s founder, urged the German government to adopt a new reform package that would increase the total volume of work, cut bureaucracy, lower labour costs and boost support for high-tech innovation. He advocated extending the standard workweek to 40 hours without additional pay, reducing statutory reporting obligations, limiting non-wage labour-cost ratios to 40 % of gross wages, and providing greater tax incentives and venture-capital access for firms operating in fields such as artificial intelligence, robotics and quantum technologies.
Background & Context
Stihl framed his appeal against a backdrop of prolonged economic weakness. Recent government measures—including a mid-2025 “Investitionsbooster” depreciation package and a July 2025 reform of statutory health insurance together with proposals for pensions, taxes and the labour market—have been described by Stihl as insufficient to reverse the structural downturn.
Data & Statistics
- 2025 turnover: €5.48 billion.
- 2025 workforce: 20,246 employees worldwide, with production sites in eight countries and over 50,000 specialist dealers.
- Since 2018, German industrial production has fallen by an estimated 15 %.
- Monthly loss of approximately 15,000 industrial jobs.
Official Statements & Responses
Stihl argued that “high-quality public administration” with streamlined, digital procedures and reduced reporting requirements would restore confidence in Germany as a business location. He called for incentives that encourage overtime, extend working lives (with exceptions for physically demanding jobs), better utilisation of unemployed and part-time workers, and skilled immigration. He also proposed that sick-pay be payable only from the second day of illness and that phone-in doctor’s notes be abolished.
Stihl stressed that productivity gains from digitalisation and AI would not offset demographic headwinds, making the increase in total work hours essential to maintain prosperity and the welfare state. He positioned the upcoming collective-bargaining round in the metal-working and electrical sectors (scheduled for fall 2026) as a pivotal moment for Germany’s industrial future.
Verbatim Quotes
- “The German economy has been stuck in crisis mode for years. The prerequisite for overcoming the persistent weakness in growth is better framework conditions,” — Andreas Stihl, chairman
- “Now we need to muster all our strength for further reforms that will then generate tangible investment and growth impulses. For that, the governing coalition and the social partners must overcome their own reservations in order to live up to their responsibility towards Germany.” — Andreas Stihl, chairman
- “The time has come to act with determination,” — Nikolas Stihl, chairman
Why It Matters
If adopted, the proposed reforms could reshape Germany’s competitive position by lowering operating costs for manufacturers, preserving domestic production, and safeguarding jobs in a sector that has historically been a pillar of the national economy. Enhanced support for emerging technologies may also accelerate the country’s transition to a knowledge-based economy, addressing long-term demographic challenges.
What’s Next
The outcome of the fall 2026 collective-bargaining negotiations will be a key indicator of whether the proposed 40-hour workweek and related measures gain traction among unions and employers.
