Germany chem industry still waiting for sustained recovery: survey
06 December 2013 15:49 [Source: ICIS news]
LONDON (ICIS)--Germany’s chemical industry is still waiting for a sustained recovery, the country’s chemical employers group said on Friday, citing a survey it conducted.
The survey of 590 chemical companies, employing about 344,000 workers, showed that business keeps stagnating while costs are rising, Wiesbaden-based BAVC said.
BAVC said that firms generally do not expect to see drastic improvements in profitability in 2014. On the contrary: 28% of the firms surveyed expect lower profitability next year while only 20% expect higher profits, the group said.
In fact, chemical companies see their cost situation worsening over the medium term, especially with regard to energy, labour and raw material costs, the group said.
"Chemical companies feel the headwinds of a weak economy, declining sales prices, negative currency effects and an increased cost burden," the group said.
The cost pressures are forcing a majority of firms surveyed to put cost savings and efficiency measure high up on their agendas for 2014, the group said.
At the same time, there are hardly any signs for "dynamic" chemical industry investments in Germany next year, it added.
Germany’s chemical producers group VCI has said that it expects a 1.5% year-over-year increase in the country’s chemical production in 2013.
Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy BlogBy: Stefan Baumgarten+1 713 525 2653
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