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Economic crisis in the Altötting district: chemical industry on the ground!
The economy in the Altötting district is severely affected: high energy costs and a collapse in demand lead to job losses and uncertainty.
Economic crisis in the Altötting district: chemical industry on the ground!
The economic situation in the Altötting district currently seems to be anything but rosy. Quite the opposite: the economy is facing a serious crisis that has far-reaching consequences. In fact, the current mood among companies is at the same level as the Corona pandemic in spring 2020 Innsalzach24 reported.
One area particularly hard hit is the chemical industry, which is fundamental to the region. This suffers from a combination of falling demand, sharply increased energy costs and excessive bureaucracy. The Chemical Industry Association (VCI) is even talking about a worsening lack of orders, which is specifically caused by reduced demand from the automotive and construction industries daily news.
Current challenges
The numbers are alarming: In the second quarter of 2025, chemical production figures fell by 3.8 percent compared to the previous quarter and by 3.1 percent year-on-year. Sales in the industry fell to 52.2 billion euros, a decrease of 5.2 percent. In addition, plant utilization is at just 71.2 percent, its lowest level since 1991. Of course, all of this also has an impact on suppliers to the chemical industry, who are also struggling with falling orders and uncertainty.
Overall, a survey by the IHK Munich and Upper Bavaria shows that only 28 percent of the companies in the district are doing good business, while 26 percent rate their situation as bad. High energy prices and a reduced lack of demand are putting pressure on over half of companies. The lack of personnel, which played a major role in better times, takes a back seat in a weak economy.
A worrying outlook
In the near future, around 33 percent of companies expect less employment, while only 10 percent dream of growing workforces. The uncertainty among employees has already had a negative impact on purchasing power and consumer sentiment, which is particularly difficult for retailers and restaurants. The trend towards reluctance to invest is also reinforced by economic uncertainty.
The biggest risks for the regional economy are currently high labor costs, bureaucracy and tax burdens. These conditions make it difficult for companies to send out positive signals. Nevertheless, there are also bright spots: Innovative founders and medium-sized companies could have the potential to provide new impetus, despite the challenging framework conditions, according to information from Innsalzach24.
In summary, the Altötting district is facing major challenges. The economy is required to be more flexible and resourceful than ever in order to overcome the crisis and emerge stronger from it.