High energy prices and bureaucracy put a strain on investments: The chemical and pharmaceutical industry in Baden-Württemberg does not expect the economic situation to be improved this year. According to a survey by the state associations in Baden-Baden, two thirds of the companies assume consistent or even falling sales. Almost half of the falling profits or losses expected.
“We are in a crisis,” said the state chairman of the association of the chemical industry, Martin Haag, in Stuttgart. The new federal government must quickly initiate an industrial policy restart. The duration for approval, for example for hydrogen infrastructure, has increased extremely.
In addition, US President Donald Trump’s latest threats to raise tariffs on pharmaceutical products. Local companies made seven billion euros in sales in the USA, said Haag. The American market is a “very, very important” for the pharmaceutical industry in the southwest.
It runs particularly badly in the area of paints and colors
According to figures from the State Statistical Office, which companies covered with more than 50 employees, the sales of the industry in 2024 fell slightly by 0.6 percent to EUR 26.1 billion compared to the previous year.
While the minus in the chemical industry was 2.5 percent to 18.1 billion euros, the pharmaceutical industry grew by 4.0 percent to 8 billion euros. According to the information of investments in 2018 and 2019, the information can be seen – i.e. before corona pandemic and energy crisis.
However, the total sales – including smaller companies – make it clear that this data only reflects this data. This amounted to 45.6 billion euros last year and thus less than 2023 (46.9 billion), as the associations based in Baden-Baden announced.
According to their own statements, they currently represent 506 companies in the chemical and pharmaceutical industry in Baden-Württemberg with 113,500 employees. Above all, thanks to settings in the pharmaceutical division, which is strongly represented in the southwest, this number has grown by around 500 New Year’s Eve of around 500.
Changes in energy and labor policy required
The industry representatives confirmed their demand for falling energy costs. The prices are not only too high in comparison to China and the USA, said Haag. Energy is also cheaper in the Netherlands, Belgium or France than in Germany. CO2 certificates also need changes. Haag emphasized that the industry has reduced greenhouse gas emissions by more than 60 percent since 1990.
The companies also come across the effort for documentation and reporting obligations, for which up to 15 percent of the working hours went to it. Patrick Krauth from the Chemistry Association of Chemistry Baden-Württemberg calculated that a medium-sized company with 300 employees cost more than four million euros in paid working hours a year to have reports filled out and produce paper. “It can’t go on like this.”
The association chairman Krauth also called for a more modern working time law and more flexibility. It is enough to give the companies a framework. The standard age limit should also not be a taboo subject in social policy, he said. “If life expectancy increases, the standard age limit must continue to increase.”
