The National Socialist economy and the war years (1933 - 1945)
The start of the National Socialist regime in 1933 and the outbreak of war in 1939 meant that German companies were increasingly integrated into military preparations and the war economy. In order to meet steadily rising production quotas, Siemens builds so-called barracks plants and uses foreign labor.
The Blockwerk in Siemensstadt after an air raid, 1944
From 1933, National Socialist economic policy pursued two primary goals: combating unemployment and “militarization of the German economy.” A four-year plan was instituted in 1936 to ready the economy and the armed forces for war within the space of a few years. Like other sectors, the electrical industry received an increasing number of orders from public offices and was drawn into the program of war preparations. This development marked the onset of a phase of rapid growth that continued through to the end of World War II.
Following its invasion of Poland in 1939, Germany embarked on a gradual transition to a war economy. The state restricted and even prohibited the production of certain civilian goods and requisites, and military conscription led to a widening shortage of labor. As a result, an increasing number of foreign civilians – men and women – were employed in manufacturing. Initially, they chose to work of their own free will. Later, though, many were forced into labor. They worked throughout German industry – in the manufacturing sector, in public services, and in agriculture. By the winter of 1941-42, the German economy had become entirely dependent on forced labor.
In late 1944, at the height of World War II, Siemens’ total workforce of 244,000 included some 50,000 people who had been put to work against their will. The overall number of men and women who served as forced labor at Siemens during the war years was, however, higher.
During the final years of the war, numerous plants and factories in Berlin and other major cities were destroyed by Allied air raids. To prevent further losses, manufacturing was therefore moved to alternative places and regions not affected by the air war. The goal was to secure continued production of important war-related and everyday goods. According to records, Siemens was operating almost 400 alternative or relocated manufacturing plants at the end of 1944 and in early 1945.
Germany’s political, military and economic collapse led to the closure of Siemens’ plants in Berlin on April 20, 1945. By the time the war came to an end, the greater part of Siemens’ buildings and industrial installations had been completely destroyed. The company’s overall losses resulting from World War II amounted to 2.58 billion reichsmarks – four-fifths of its total assets.