German rubber industry reports higher order intake in first half

Frankfurt, Germany – The German rubber industry continues to face structural challenges, despite an improved trend in orders in the first half of 2025, according to a mid-year economic survey by industry association (WDK).

"The trend in incoming orders is positive for the first time in a long time. However, domestic production is not benefiting from this,“ said Michael Berthel, chief economist at WDK 23 July.

Like other industrial sectors, the German rubber industry continues to face high energy costs, heavy bureaucratic burdens, and high labour expenses, said Berthel.

These cost disadvantages, he said, continue to remain for Germany as an industrial location, particularly for "globally positioned" companies.

The WDK expert went on to say that with the “positive signals” in order intake, the industry is expected to generate higher revenue in 2025, compared to last year.

However, he said, “our expectations for domestic [consumption] are very subdued and currently stand at 1% lower [than last year].”

Berthel also warned that “more and more companies are being forced to relocate production away from Germany.”

Participants in the survery also remained cautious about the federal government’s ‘investment booster’ initiative, introduced to stimulate industry.

Only 27% of company leaders expect the programme to have a positive impact on their business, according to WDK.

Commenting on the figure, WDK president Michael Klein said it was a “red flag” for the government, noting that it showed 'lack of confidence' in decisive economic policy from the government.

“Companies in the German rubber industry are urgently waiting for swift relief. These measures must take effect now, not in a few years,” he added.

Klein also criticised the limited dialogue between the government and smaller firms, given the role played by SMEs in the German economy. 

“It is now finally time to involve them more actively in political dialogue and ensure them that they receive support measures that actually help them,” he added.

Otherwise, he warned “Germany as an industrial location will be history for the systemically important rubber industry in the foreseeable future."