Chemical industry in Germany: Business climate reaches critical deep

Chemical industry in Germany: Business climate reaches critical deep

negative tendencies in the chemical industry: A look at the challenges

The German chemical industry is currently faced with a serious decline in the business climate. This is visible by the indicator of the IFO Institute, which in July 2023 fell to a value of minus 10.5 points. In the previous month, June, this value was minus 4.5 points. The current situation shows that the industry is in a difficult economic phase that is reinforced by various external factors.

causes and effects of the decline

The chemical industry not only has a deterioration in the current situation, but also a pessimistic assessment of future developments. This means that demand declines and the companies fear a falling order. As a result, you plan to restrict production and reduce staff. Experts like Anna Wolf emphasize that the location of Germany is becoming increasingly unattractive due to price disadvantages in international competition.

economic and bureaucratic hurdles

The companies are not only exposed to high energy costs, but also a burden on extensive bureaucratic requirements. These factors help to increase the labor costs in the country, which further affects the competitiveness of chemical companies. Wolf points out that the combination of these challenges is a critical situation for the German chemical industry.

progressive development in competition

The increasing difficulties in the chemical industry could not only have short -term effects on companies themselves, but also long -term consequences for the entire economy. Determined competitiveness could lead to a loss of jobs and innovations that are of great importance for the industry and the region.

conclusion: the need for changes

The negative development in the chemical industry clearly shows that there is an urgent need for action. Stakeholders from politics and companies should develop strategies together to improve competitive conditions for the industry. Their decline has an impact on the companies concerned, but also on the employment and economic stability of Germany.