The German industrial sector’s struggles are increasingly visible in the financial results of Stuttgart-based cable manufacturer Lapp, according to company CEO Matthias Lapp. The family-owned business reported a six percent increase in revenue to €1.93 billion for the fiscal year ending September 30, 2024, but the growth masked a stark divergence between strong international performance and a weakening domestic market.
While Lapp saw double-digit growth in both the Americas and Asia, its home market of Germany remains a significant concern. “The deindustrialization that I perceive within our company is a major challenge,” Lapp stated in a recent interview. The company’s fortunes are closely tied to investment in German industry. demand for Lapp’s cables and data lines rises and falls with the health of the nation’s factories and infrastructure projects.
Lapp has been manufacturing in the United States for over 50 years, mitigating the impact of U.S. Tariffs on specialized cables. Similarly, the company has established production facilities in Asia, including India, China, Korea, and Indonesia, capitalizing on intra-Asian free trade agreements. A modern factory recently opened in India, and new production lines came online in China and the U.S.
Despite optimism regarding increasing dynamism in overseas markets, fueled in part by EU free trade talks with India and Latin America, Lapp expressed apprehension about the state of German industry. He criticized the current German government, stating, “The reforms of the federal government have so far fallen short of expectations.” Lapp called for a move away from partisan politics and a focus on delivering results, emphasizing the need for pragmatism, innovation, and courage during a period of significant transformation.
Lapp specifically advocated for greater trust in entrepreneurs, arguing that “the state is partially disenfranchising entrepreneurs and trying to prescribe everything.” He asserted his confidence in the expertise of business leaders. While Lapp declined to disclose specific profit figures, he indicated the company remained profitable, though not to the extent he desired.
Looking ahead, Lapp expressed cautious optimism for the coming months, citing continued demand for cables in the construction of data centers and energy infrastructure. However, the company is also preparing for potential cost-cutting measures, including a possible reduction in its German workforce. “In times like these, hardly any company can give job guarantees,” Lapp said on February 11, 2026, adding that any job cuts would be implemented in a socially responsible manner. The company had already cancelled its Christmas celebration in 2025 as a cost-saving measure.
Lapp currently employs approximately 5,700 people worldwide, with around 1,400 based in the Stuttgart region. The company is proceeding with the construction of a new logistics center in Ludwigsburg, despite the economic headwinds. The company’s future performance will likely continue to serve as a barometer for the health of the German industrial sector.
