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Minus in chemical industry in the southwest less than nationwide

Energy prices, bureaucracy, production decline: The chemical industry has many challenges and had expected declines for 2024. There are differences between federal and state governments.

The first half of the year was better for the chemical industry in Baden-Württemberg than the...
The first half of the year was better for the chemical industry in Baden-Württemberg than the national average.

- Minus in chemical industry in the southwest less than nationwide

In the first half of the year, the chemical industry in Baden-Württemberg recorded the expected decline in turnover. At 2.7 percent to 13.2 billion euros, the decrease was less than the national average (minus 3.5 percent), as reported by the industry associations in Baden-Baden.

The number of employees in the southwest increased by 1.2 percent to around 65,000, more than the national average of 0.4 percent. The statistics, based on data from the State Statistical Office, only include companies with more than 50 employees.

"The first half of 2024 was unfortunately disappointing for our industry," said the managing director of the Baden-Württemberg Chemical Industry Association, Winfried Golla. "Now we hope for a recovery in 2025." Many companies expect the industry's economic situation to improve no earlier than the end of the year.

According to Golla, rising bureaucracy costs, a backlog of infrastructure investments in Baden-Württemberg, and still too high energy costs in international competition are critical. "We need better conditions in the country to encourage investments in the domestic market again." The location must become competitive again.

Details

In Baden-Württemberg, the pharmaceutical sector reported a turnover increase of 1.4 percent to 3.9 billion euros from January to June, driven by domestic business (plus 5.0 percent). This sector also contributed to the slight positive employment figures (plus 2.8 percent).

However, the chemical industry excluding this sector ended with a 4.3 percent decrease to 9.2 billion euros. The decline in domestic turnover was significantly greater at 10.0 percent compared to the international decrease of 1.0 percent. However, domestic turnover accounts for only about a third of total turnover.

The Baden-Württemberg Chemical Industry Association is actively seeking better conditions in the Southwest to attract investments. Many companies in the Southwest, including the chemical industry, are looking forward to improved economic conditions by the end of 2025.

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