German rubber industry reports 5.3% decline in nine-month sales

Frankfurt am Main, Germany – The German rubber industry association (WDK) has reported a 5.3% year-on-year decline in sales for the first nine months of 2024 with production down 6%.

“The hopes of the German rubber industry for an economic revival and a surge in demand at the beginning of the second half of 2024 have not been fulfilled,” Frankfurt-based WDK said 6 Nov statement.

Citing the results of its latest members survey, the association said that most companies in the sector ‘continue to be confronted with a difficult market environment.’

The cumulative annual data, according to the WDK, has deteriorated “even further” due to a weak third quarter.

Order-intake in both domestic and international businesses remained “significantly below” the comparable figures of the previous year.

The trend outlook, noted WDK chief economist Michael Berthel, is not positive in the short-term for the fourth quarter nor in the medium term for the coming year.

In addition to weak demand, Berthel linked the decline to the lower competitive position of the German rubber industry internationally.

Shortage of skilled workforce, he said, is another issue facing the local rubber industry.

Around two-thirds of the industry is affected by the economic downturn, said the WDK economist, adding that German industry as a whole was going through a “pronounced phase of weakness."

According to Berthel, production relocations and site closures are currently under consideration by many companies, with one-in-five introducing “short-time work”.

In view of the latest figures, WDK president Michael Klein called for “decisive measures” by federal government to strengthen international competitiveness.

“What we need now is not more uncoordinated industry summits, but decisive action,” Klein said.

Priority issues to address, stated the association president, include those around energy, taxation and red-tape, in order to improve the German economy.

"Everyone knows what to do to stop the negative spiral," he concluded, "energy prices, corporate taxes and bureaucratic burdens must go down as quickly as possible."