Rubber manufacturers add voice to warning over German 'de-industrialisation'

Frankfurt, Germany – German rubber industry association (WDK) has joined a call urging federal government support for medium-sized companies, as a sector “threatened to its core” by a sharp decline in competitiveness.

The ‘medium-sized industry manifesto’ released 11 April by the Alliance for Fair Energy Transition*, called for relief from “grid fees and government burdens” particularly those relating to energy.

Furthermore, the industry grouping demanded a reduction in “bureaucracy and excessive reporting obligations” as well as wide-ranging “corporate burdens” around taxes and levies.

Lastly, the manifesto highlighted skills issues facing medium-sized companies in germany: demanding measures to facilitate the recruitment of skilled labour within the sector.

Stating that medium-sized enterprises have long been “pillars of the social market economy” in Germany, the statement said the industry sector provides “well-paid jobs for everyone, even in structurally weak and rural areas.”

“However, the industrial medium-sized sector is currently threatened in its core by a rapid loss of competitiveness,” the manifesto added.

The alliance further noted that “significantly high energy costs compared to internationally and excessive bureaucracy [was driving] insolvencies and the relocation of production” away from Germany.

“A process of deindustrialisation with the loss of value-creation and jobs is no longer just looming; it has already begun,” the statement warned.

To restore the competitiveness of the German industry, it went on to say, “quick and decisive political action” was required.

“All existing instruments need to be thoroughly examined to determine whether they actually promote climate-protection or simply entail effort and cost increases,” the manifesto added.

Furthermore, the statement noted that for the industry decarbonise production processes, it will need to remain “high-performing and internationally successful.”

Commenting on the subject, WDK president Michael Klein called on politicians in Germany to heed the warnings and respond proactively to the manifesto.

"I am counting in particular on the prime ministers of the federal states that are most important for our industry,” stated Klein.

*The associations in the Alliance for a Fair Energy Transition represent cross-industry more than 10,000 predominantly energy-intensive medium-sized German companies with about one million employees and approximately €200 billion in annual turnover.