WDK warns of ongoing rubber industry decline in Germany

Frankfurt am Main, Germany — The German rubber industry is in a precarious position after four consecutive years of shrinking production and weakening demand, according to a new press release from the Wirtschaftsverband der deutschen Kautschukindustrie (WDK). The industry association’s latest data shows that both employment and production continued to decline in 2025, while firms increasingly consider relocating manufacturing abroad.

In its report the WDK outlined persistent challenges facing one of Germany’s long-standing industrial sectors. The association warned that demand for rubber products, traditionally strong both domestically and on export markets, has significantly weakened.

According dropped for the fourth year in a row in 2025, reflecting a prolonged contraction in the German rubber sector.

Employment has now declined for the fifth consecutive year, underscoring the depth of the downturn.

Manufacturers reported that orders are increasingly awarded based on cost factors, rather than on quality — a shift that has eroded Germany’s competitive edge.

The sharp international cost competition — driven by high energy, bureaucratic, tax and labor costs in Germany — has made it difficult for mid-sized German rubber firms to compete with lower-cost producers abroad.

WDK Chief Economist Michael Berthel emphasized a troubling trend: companies are now making strategic decisions to invest outside Germany in order to escape domestic cost burdens — even though they wish to maintain ties to the local market. According to the press release, this shift is not due to a lack of commitment to the German location, but rather a necessity driven by economic pressures.

“Businesses are forced to seek relief from cost pressures in Germany and are investing abroad,” Berthel said. “They do so despite their strong roots and historical association with the German industrial base.”

WDK President Michael Klein used the publication of the 2025 figures to urge immediate political action, calling on the German government to bolster demand and improve competitiveness. Klein warned that without decisive measures, the long-standing strength of Germany’s rubber industry — a supplier for sectors including health, infrastructure, safety and mobility — could be eroded.

“The poor situation of the industrial location in Germany is well known and debated,” Klein said in the press release. “What we need now is clear political support to revive demand and improve competitiveness — not tomorrow, not later, but today.”

Industry insiders cited structural hurdles — such as regulatory burdens, high production costs and weaker international orders — as the primary drivers of the slowdown. These factors have combined to make production abroad a more economically viable option for some companies, according to the WDK’s analysis