The steel and metalworking industries, which form the basis of Germany's industrial production, have experienced a difficult start to 2025. In the first six months, production decreased by 3.4% year-on-year. The temporary 2.4% recovery from May to June was insufficient to offset the decline. Moreover, the weak growth in orders seen earlier this year turned negative again by June.
The German Association of Steel and Metalworking Manufacturers (WSM) called the reduction a "retarding effect" and warned that the current situation could lead to structural erosion in the industry. The Association calls for bold political steps: "The time has come to move forward, not stagnate – we need a hot autumn filled with bold political decisions."
High energy costs and weak infrastructure are bottlenecks.
According to WSM, the decline in production is due to long-term, persistent structural problems in Germany that require urgent solutions.:
High energy prices and taxesHeavy bureaucracy and slow permit processesInsufficient investment incentivesWeak infrastructureThese factors seriously hinder the day-to-day operations and future projects of about 5,000 medium-sized companies belonging to the association. WSM CEO Christian Vietmeyer noted: "We must change these conditions, which hinder the courage needed for innovation, investment and transformation. The coalition partners must act together and make belated decisions."
In addition, new tariffs in the United States are increasing pressure on the sector, creating another obstacle to growth.
Lifting restrictions on access to gas is the first step, but not enough
The WSM welcomed the decision to abolish natural gas storage fees (Gasspeicherumlage), which is a positive development, but it is emphasized that this alone is not enough. Holger Eid, Head of the Industrial and Energy Policy Department at WSM, said: "It is also necessary to reduce the high fees for using the grid. In addition, a special and affordable tariff for industrial electricity should be introduced for all manufacturing companies. Without this, small and medium-sized enterprises will not be able to switch to energy-dependent conversion technologies."
No more delays
Christian Vietmeyer stressed that the industry is ready to invest in sustainable production, but needs clear ways.: "There is an urgent need for digitalization and faster production." authorization processes. Companies want to invest, but they need incentives, a reliable legal framework and stable conditions."
The idea of WSM is clear: industrial
