Rheinland-Pfalz Businesses Face Prolonged Crisis Amid Calls for Urgent Reforms and Industry Action

The economic situation in Rheinland-Pfalz remains dire as regional businesses continue to grapple with a prolonged crisis marked by rising insolvencies and stalled investments. Johannes Heger, President of the Landesvereinigung Unternehmerverbände Rheinland-Pfalz (LVU), described the local business climate as "very bad," warning of the growing difficulties faced by all industrial sectors and highlighting critical issues such as business succession, particularly among small owner-operated companies.

Heger criticized the federal government's slow progress on structural reforms, lamenting that despite promises, substantial measures have not been implemented. Instead, he noted, new bureaucratic regulations have compounded the challenges firms face, undermining recovery efforts and prompting some businesses to reconsider their presence in the region.

In a complementary perspective on the national industrial landscape, Christiane Benner, chairwoman of the IG Metall union, emphasized the urgent need for German companies to collaborate closely with political actors and the workforce to navigate the deepening crisis. She highlighted persistent challenges including tariffs from the US, competitive pressures from China, and soaring energy prices stemming from the Ukraine war.

Benner called for targeted European investments in digitalization and future technologies, notably battery technology, to revive and sustain the industrial sector. She supported the recent decision to delay the 2035 combustion engine phase-out, arguing this will provide vital time for industries to find better solutions and retain core competencies. Maintaining jobs remains paramount; Benner stressed retraining workers for sectors facing labor shortages such as defense and medical technology.

The IG Metall leader criticized the closure of factories and the relocation of research and development activities abroad, warning such practices erode Germany's industrial fabric. She urged companies to abandon complaint-driven attitudes and instead rapidly develop and implement future strategies, appreciating political support on energy cost relief and e-mobility initiatives. Benner also advocated for fair competition measures against China, including local content requirements in public procurement.

Together, these voices reflect a shared sense of urgency and call for comprehensive reforms and collective industry action to alleviate Rheinland-Pfalz’s economic hardships and safeguard the wider German industrial economy’s future.