WDK reports ‘worrying situation’ facing German rubber industry

Frankfurt am Main, Germany – Germany's rubber-product manufacturers saw a nearly 2% year-on-year decline in sales last year, according to a survey by industry association the WDK.

Commenting on the findings of the recent members survey, WDK president Michael Klein described the situation as an “abundantly clear warning signal” about profitability within the sector.

In 2023, about a quarter of members reported that their earnings were “strained or [under threat],” according to Klein.

That proportion increased to more than 40% of the participants this year, he added in a 14 Feb press release about the latest survey findiings.

“That is why the improvement of location conditions must be at the top of the agenda of the next federal government,” said the WDK leader.

According to the survey, more than one in five companies in the industry is planning to shift production out of Germany this year.

Respondents cited low demand, legislation, energy, sustainability, and particularly 'site conditions' as the biggest challenges.

Klein also highlighted the growing regulatory burden, with 90% of companies reporting an increase in bureaucracy.

“This is a clear task for politicians: the new federal government must immediately take care of reducing bureaucracy – in Germany and in Europe,” he said.

According to Klein, some 13,000 new laws have been passed since 2019 adding to the red-tape burden weighing down the industry.

WDK is the umbrella organisation covering manufacturers of tires and technical elastomer products: representing over 200 companies with almost 70,000 employees and a total annual turnover of more than €10 billion.