In the first half of 2025, production fell by 3.4% compared to the previous year. The brief increase in June was unable to halt the negative trend, and the order situation is also declining again.
For the German Steel and Metal Processing Association (WSM), one thing is clear: without bold political decisions, this key SME sector is at risk of losing its substance. "We need momentum instead of stagnation," emphasizes WSM Managing Director Christian Vietmeyer. Around 5,000 companies with 450,000 employees are suffering from high energy prices and taxes, slow approval procedures, excessive bureaucracy and a lack of investment incentives. Added to this are ailing infrastructures and new US tariffs. All of this is slowing down the courage to innovate and transform, according to the WSM.
"The coalition must pull together..."
As a first step, the association welcomes the abolition of the gas storage levy, but calls for further relief: Grid fees would have to fall and an industrial electricity price would have to be introduced for all manufacturing companies. "Only then can SMEs switch to energy-dependent transformation technologies," emphasizes Holger Ade, Head of Industrial and Energy Policy at WSM. At the same time, accelerated, digitalized approval procedures are needed to avoid slowing down investments. "The coalition must pull together and push for long overdue decisions," says Vietmeyer. The WSM is expecting a "hot autumn" with quick measures that will strengthen competitiveness.
