FRANKFURT, Germany—The German Rubber Manufacturers Assocation, or the WDK, has reported 4.5-percent year-on-year growth in sales to $10.9 billion for 2022, amid continued cost pressure on margins and profitability.
The higher sales reflect "exorbitantly rising costs for raw materials, energy and logistics," caused by external factors including the war in Ukraine, microchip shortages and natural disasters, WDK said March 6.
Germany's rubber manufacturers have faced "logistical impairments and/or production downtimes in the upstream process chain," SAID Michael Berthel, chief economist at WDK.
At the turn of the year, there also were challenges around cost increases linked to a weak euro in relation to the U.S. dollar, he added.
According to Berthel, companies were able to compensate for these "diverse and significant" cost increases through higher sales, but only to a limited extent.
In particular, he noted that the cost increases for raw materials in 2022 were "consistently in the high double-digit percentage range."
For example, Berthel said the average year-on-year price increase for silicone rubber was almost 70 percent. It was and almost 65 percent for carbon black.
Price increases for most important synthetic rubbers and chemicals, however, were relatively "moderate" with average rises of between 15 percent and 50 percent.