Germany’s rubber industry is facing significant economic challenges, mostly due to the obvious suspects: rising energy, raw material, and logistics costs, which threaten the financial stability of companies within the sector. The German Rubber Manufacturers Association (wdk) has issued a stark warning, highlighting the growing risk of insolvencies, job cuts, and the potential relocation of businesses due to unsustainable operational expenses. According to wdk chief economist Michael Berthel, the industry is grappling with an economic recession, declining demand for rubber products, and persistent increases in energy costs. Since 2019, the manufacturing costs for major rubber product categories have risen by over 60%, while sales in the first half of 2022 saw a meager 1% increase, leaving companies to bear the brunt of rising expenses. Industry leaders are urging the German government to implement immediate relief measures to address the ongoing crisis. The wdk is calling for swift solutions to the high electricity and gas prices, which have placed an undue burden on industrial enterprises. Without governmental support, manufacturers will struggle to maintain liquidity, leading to further financial strain and potential shutdowns. Germany’s rubber industry is heavily tied to the automotive sector, which has been experiencing its own set of difficulties. Supply chain disruptions, including semiconductor shortages and geopolitical tensions linked to the Ukraine war, have hindered vehicle production. This has resulted in lower-than-expected demand for rubber products, particularly tires, which are a core segment of the industry. The German Association of the Automotive Industry (VDA) has already downgraded its forecast for automotive demand multiple times in 2022, reflecting a weaker-than-expected market. While the automotive sector struggles, the non-automotive rubber industry—including industrial supplies, construction components, and consumer products—has performed relatively better. In the first half of 2022, businesses in these areas saw moderate sales growth.