welt.de
German Chemical Industry Reports Sharp Decline, Warns of Downward Spiral
The German chemical industry reported a 1% decrease in overall production in the first half of 2025, with chemical sales down 2% and production down 3%, while the pharmaceutical sector saw production rise 2% and sales 5%; the VCI president warned of an impending downward spiral due to order shortages and rising imports, urging government intervention to improve the business environment.
- How do the challenges faced by the German chemical industry relate to broader economic trends in Germany and Europe?
- This downturn is linked to a significant 40% of companies reporting insufficient orders, resulting in an average plant utilization rate below 80%. This situation reflects broader economic challenges and the industry's role as a key indicator of German industrial health.
- What policy changes does the VCI propose to address the challenges facing the industry, and what are the potential long-term consequences of inaction?
- The industry anticipates a continued decline in chemical production for the remainder of 2025. Companies are announcing job cuts, creating a negative feedback loop of reduced orders, high costs, and increased imports. The situation underscores the need for government intervention to address bureaucratic hurdles, modernize the debt brake, and reform energy policy.
- What are the key findings of the VCI's mid-year report on the German chemical and pharmaceutical industry, and what are the immediate implications for the sector?
- The German chemical and pharmaceutical industry faced a challenging first half of 2025, with a 1% decrease in overall production. The chemical sector experienced a steeper decline, showing a 2% drop in sales and a 3% reduction in production. In contrast, the pharmaceutical sector saw a 2% increase in production and a 5% rise in sales.
Cognitive Concepts
Framing Bias
The article's framing is predominantly negative, focusing on the downturn in the chemical industry and highlighting concerns about job losses. The headline (if any) would likely emphasize the negative aspects. The use of words like "düster" (gloomy) and phrases like "Gewinnwarnung" (profit warning) and "Abwärtsspirale" (downward spiral) immediately set a negative tone. While the positive performance of the pharmaceutical sector is mentioned, it's presented as a minor exception to the overall negative trend. This disproportionate emphasis on negative news could influence readers to perceive a more pessimistic outlook than might be warranted.
Language Bias
The article uses strong negative language such as "düster" (gloomy), "geschockt" (shocked), "Sorgen" (worries), and "Abwärtsspirale" (downward spiral). These words create a sense of urgency and pessimism. While these words accurately reflect the concerns expressed, the repeated use of negative terminology could be toned down to achieve greater neutrality. For example, instead of "geschockt" (shocked), a more neutral term like "überrascht" (surprised) could be used. Similarly, instead of "Abwärtsspirale" a more descriptive phrase like "a period of decline" could be used.
Bias by Omission
The article focuses heavily on the negative aspects of the chemical and pharmaceutical industry's performance, mentioning the positive performance of the pharmaceutical sector briefly but without detailed analysis. Missing is a more in-depth exploration of the reasons behind the pharmaceutical sector's success, which could offer valuable insights and a more balanced perspective. Additionally, the article omits discussion of potential long-term strategies the industry is employing to overcome current challenges. While acknowledging space constraints is reasonable, a more nuanced picture of the industry's response to the downturn could have been included.
False Dichotomy
The article presents a somewhat simplified view of the challenges facing the industry, primarily focusing on the negative impacts of order shortages, high costs, and increasing imports. While these factors are undoubtedly significant, the narrative doesn't explore the possibility of alternative solutions or strategies beyond calls for government intervention. This could mislead readers into believing that the industry's situation is entirely bleak and devoid of potential solutions.
Gender Bias
The article does not show overt gender bias. The sources quoted (Steilemann, Schaefer, Rautenberg) are predominantly male, reflecting the industry's leadership demographics. However, this does not automatically indicate bias if it accurately reflects the industry's reality. To improve, the article could actively seek out and include perspectives from female leaders in the chemical and pharmaceutical industries.
Sustainable Development Goals
The article reports a decline in the chemical industry's production and sales, leading to potential job cuts and economic downturn. This directly impacts decent work and economic growth in Germany. The mentioned 480,000 employees in the chemical industry are at risk. The projected decrease in chemical production further underscores the negative impact on economic growth.