Struggling Mountain Economy Identified by Chamber of Commerce and Industry
In the industrial heartland of Bergisch Gladbach, Remscheid, and Solingen, businesses are grappling with a challenging economic climate, according to a recent survey conducted by the IHK (Chamber of Industry and Commerce). The survey, which involved 542 companies employing a total of 21,400 workers, revealed a mixed picture of cautious optimism, deteriorating economic conditions, and continued job losses.
The retail trade is optimistic about sales growth this year, but the forecasts are slightly less pessimistic than in the previous autumn, according to Henner Pasch, IHK President. However, the survey results reveal that only 17% of companies expect an improvement in their economic situation, while 27% expect a deterioration.
One of the major concerns for businesses in the region is the impact of high energy prices. Pasch stated that energy prices are weakening the competitiveness of local companies, particularly in the manufacturing sector. The transport industry is also significantly affected by high fuel prices, while increased costs for goods and personnel are causing problems for companies in the hotel and catering industry.
Bureaucracy is another cost factor that is burdening the economy. The growing bureaucracy is making it harder and more time-consuming for businesses to comply with regulations, obtain permits, or adapt to market changes. This inefficiency stifles innovation and growth, discourages new businesses from starting, and complicates expansion plans.
The high value-added share of the manufacturing industry in Remscheid contributes to the worse mood. Despite a significant increase in personnel costs due to high wage agreements last year, productivity has hardly increased. Many companies are complaining about a poor order situation, and every second trader in the wholesale trade fears that it will continue to go downhill in 2025.
Industrial companies in the IHK region have cut around 2,800 jobs in two years, and three out of ten companies are planning further job cuts. The mood in Remscheid is significantly worse than in Wuppertal and Solingen, with 18% of companies rating their business situation as "good", 47% as "satisfactory", and 35% as "poor".
The survey results paint a picture of an economy struggling to adapt to changing circumstances. The political landscape, shaped by the 2025 German federal election with shifts toward CDU/CSU and rising far-right AfD influence, may also contribute to regulatory uncertainty and economic policy debates that affect business confidence.
Sustainability initiatives and transitions, such as those promoted by organizations like the CSCP in the Bergisch city triangle, emphasize circular economy and resource efficiency but can also require upfront investments and adjustments that may strain companies already facing high energy costs and bureaucratic hurdles.
Despite these challenges, the service providers report that they are in a better position than other sectors. As the region navigates these economic headwinds, it remains to be seen how businesses will adapt and whether the industrial crisis will persist into 2025 and beyond.
[1] For more information on the 2025 German federal election and its potential impact on the economy, see [source].
[2] For more information on sustainability initiatives in the Bergisch city triangle, see [source].
The retail trade, despite anticipating sales growth this year, shows cautious optimism due to only 17% of companies expecting an improvement in their economic situation. Furthermore, the financial health of businesses in the manufacturing sector, especially those in Remscheid, is under strain due to high energy prices and increasing personnel costs.
