Rubber industry in danger: Decline in sales pushes for quick reform!

Rubber industry in danger: Decline in sales pushes for quick reform!

The situation in the German rubber industry is serious. According to the results of a current member survey, the industry's earnings situation is alarming. The President of the German Rubber Industry Association (wdk), Michael Klein, said that the situation should be seen as an “extremely clear warning signal”. In the first quarter of 2025, companies suffered a decline in sales of 2.7 percent compared to the previous year. Sales and production also fell by 2 percent and 2.5 percent, respectively.

These worrying developments are not isolated. In 2024, the industry recorded a decline of almost 2 percent in sales, and domestic production and sales fell by 3 percent. In addition, the proportion of rubber companies with earnings that are strained or even threaten their existence has increased from around 25 percent in 2023 to over 40 percent in 2025.

Urgent demands on politicians

In order to defuse the critical situation and stimulate growth, the rubber industry is calling for urgent measures from politicians. The industry is insisting on reducing bureaucracy and lower energy prices in order to remain competitive. Klein emphasizes: “The decisive factor is on the pitch,” which means that practical and quick solutions are necessary to ensure the competitiveness of Germany as a production location.

A particularly alarming signal is that more than 20 percent of companies plan to move their production from Germany, which could pose a lasting threat to the further development and stability of the industry. Above all, the increasing bureaucracy seems to be a major burden; 90 percent of companies report an increasing burden of bureaucracy, which has a negative impact on business activities.

Challenges for the rubber industry

The biggest challenges facing the industry include demand development, legal frameworks, energy prices and sustainability issues. Klein also draws attention to the enormous number of 13,000 new laws since 2019, which represent additional hurdles for companies. It remains to be seen whether and how politicians will respond to the urgent demands of the rubber industry in order to secure its competitiveness and future viability.

Overall, the rubber industry is facing a critical situation that must be addressed urgently in order not to further endanger Germany as a location. Both the industry and politics have a responsibility to find solutions to counteract the negative development.

For more information on the member survey results, see the articles from technicaltrade.com and wdk.de be called.