German Companies Adjust to Uncertainty as Geopolitical Pressures Disrupt Planning

Geopolitical developments are increasingly shaping how companies in Germany approach planning and decision-making, with many reporting reduced visibility over the economic outlook, according to a recent survey by Atradius.

The study, conducted in March among nearly 200 businesses across a wide range of sectors, indicates that more than half of respondents have experienced a decline in predictability over the past year. A large majority also acknowledge that geopolitical factors are influencing their operations, although the intensity of this impact varies.

“Geopolitical risks are no longer an abstract scenario, but have a concrete impact on business decisions,” said Frank Liebold, Country Director Germany at Atradius, highlighting that companies with international supply chains and export exposure are particularly affected.

Despite recognising these risks, many organisations do not feel fully equipped to respond. Around half of respondents describe their level of preparedness as insufficient, while fewer than half consider themselves well positioned to manage potential disruptions. Assessments of resilience remain moderate overall, with companies giving relatively low scores to their own ability to withstand external shocks.

“The results reveal a structural discrepancy: companies recognise the risks but do not feel sufficiently equipped to deal with them,” Liebold added.

In response, businesses are prioritising measures aimed at maintaining operational stability. Adjustments to pricing policies, strengthened risk management practices and the accumulation of financial buffers are among the most common actions. By contrast, more fundamental changes, such as restructuring supply chains or scaling back investment plans, are less widespread at this stage.

“Many companies are currently focusing on ensuring stability and managing risks in their day-to-day operations. This is understandable given the current situation,” said Liebold.

Companies are also concentrating on areas within their direct control. This includes reinforcing core activities, improving flexibility in operations, expanding digital capabilities and reviewing product portfolios. Some are also placing greater emphasis on internal communication with employees as part of their response to ongoing uncertainty.

The findings suggest that while geopolitical risks are now firmly embedded in corporate decision-making, most companies are responding with short-term adjustments rather than broader strategic shifts, as they navigate an increasingly complex operating environment.