Strategy& – The state of the chemical industry

The chemical industry has historically driven growth but is now facing challenges due to deindustrialization. Germany, in particular, is suffering with a loss in value-add, decreased profits, lower investments, and declining incoming orders. Regulatory burdens in the EU, especially in Germany, have increased, creating uncertainty and discouraging innovation and investment. Energy prices, particularly natural gas, are not competitive, affecting the industry's competitiveness. Decision-makers in policy and government, as well as chemical companies, need to take immediate action to boost Germany's competitiveness as a manufacturing country.