According to a survey, every sixth company in the metal and electrical industry sees their existence threatened by the high energy costs.
A good two-thirds of all companies could not pass on the high price increases for energy and preliminary services at all or not at all to cover costs, the employers' association Gesamtmetall announced on Monday.
The purchase costs for gas and electricity would have more than doubled.
In the meantime, 50 percent of companies across all sectors of the metal and electrical industry are affected by cancellations and order postponements.
In addition, 32 percent expected this in the coming months.
According to the information, 1401 companies took part in the survey from September 30th to October 10th, which represented a good one million of the employees and thus around a quarter of the industry.
With the survey on the economic situation of the companies, Gesamtmetall is also preparing for the current round of collective bargaining for around 3.8 million employees in the metal and electrical industry.
IG Metall is demanding 8 percent more wages and expects employers to submit an offer for the third round of negotiations in three collective bargaining districts on October 27.
The trade union concluded from a survey of works councils last week that most companies in the industry are still doing well.
IG Metall boss Jörg Hofmann accused the employers of an "apocalyptic scenario".
"The energy crisis is hitting companies in the metal and electrical industry with full force - across all sectors and sizes," said Oliver Zander, General Manager of Gesamtmetall.
"There can be absolutely no talk of a stable situation."
The situation is also characterized by great uncertainty.
Another year of recession is expected for the industry next year.
The federal government expects gross domestic product to fall by 0.4 percent overall in 2023.