South Westphalia under pressure: Industry in transition and challenges in 2025

South Westphalia under pressure: Industry in transition and challenges in 2025

The industrial region of South Westphalia is under pressure. The seventh edition of the brochure “South Westphalia in Numbers” is presented in a current publication by the IHKs Arnsberg, Hagen and Siegen. Martin Groß, finance team leader at SIHK, emphasizes how important the industry is for the region. Around 42.5% of the workforce in South Westphalia is employed in the manufacturing sector - a figure that far exceeds the German average of 26.8%. Almost half of the gross value added therefore comes from industry, whereas in North Rhine-Westphalia less than a third works in this sector, as lokaldirekt.de reports.

However, there is also cause for concern. In 2024, the South Westphalian industry recorded a decline in sales of 6.8%. This was greater than the NRW average decline of 4.2%. In addition, the number of employees in the region has declined. Despite an increase in the number of employees subject to social security contributions of around 48,000 since 2014, there is a worrying trend for the region's labor markets. The unemployment rate is currently 6.1%, below the national average of 7.5%.

Demographic challenges and development

The brochure also provides information on population development. The region is more affected by demographic changes than the rest of Germany and North Rhine-Westphalia. The proportion of older people over 50 is growing, while the proportion of younger adults is declining. In the last ten years, the population in South Westphalia has decreased, which is in contrast to the national trend. While the region's industrial strength continues to be highlighted, the declining population contributes to uncertainty, as vdsm.net points out.

However, there are also positive signs. The “Other Services” and “Trade, Hospitality and Transport” sectors of the economy have experienced positive development, with over 95% of employment growth since 2014 coming from these two service sectors. This shows that the region not only relies on its traditional industry, but also sees future prospects in other sectors.

Economic vitality and purchasing power

Even though the order situation and the figures in the manufacturing sector present current challenges, the purchasing power of residents in South Westphalia is encouraging. This is above the state average, with 451 euros more per capita than the NRW average. In addition, income increased by 17.1% between 2020 and 2024, which is well above the national and state average. This shows that despite the general conditions, companies in South Westphalia are able to do good business and promote people's purchasing power.

The brochure “South Westphalia in Numbers”, which offers valuable information on the economic situation and the region’s most important key figures, is available at sihk.de/statistics and provides a detailed insight into the industrial landscape, which offers both opportunities and challenges for the future.