Germany's energy-intensive industries have been under severe pressure since Russia's war against Ukraine began in February 2022. According to the Federal Statistical Office (Destatis) in Wiesbaden, production across these sectors fell by 15.2 percent between February 2022 and March 2026 on a seasonally and calendar-adjusted basis. The decline was significantly steeper than in the broader industrial sector, which saw output drop by 9.5 percent over the same period.
The surge in energy prices following the war and subsequent sanctions hit these industries disproportionately hard. Their energy consumption relative to gross value added is exceptionally high, making them far more vulnerable to cost increases than other segments of the economy.
The steepest production losses occurred in the glass, ceramics, and building materials sector, where output collapsed by 25.0 percent. Within that category, manufacturers of concrete, cement, and calcium silicate products experienced a particularly dramatic contraction of 29.3 percent.
The paper industry and the chemical industry also recorded substantial declines, with production falling by 18.5 percent and 18.1 percent respectively. The metals sector saw a comparatively smaller but still significant drop of 12.9 percent.
The petroleum refining industry stood out as the sole exception. Production in this sector climbed by 24.6 percent compared to February 2022, driven by notable gains recorded since January 2026.
The production downturn was accompanied by considerable workforce reductions. Employment in energy-intensive industries fell from 847,700 in February 2022 to 794,400 in March 2026, a decline of 6.3 percent, amounting to 53,300 lost positions. The paper industry bore the largest proportional loss at 8.6 percent, followed by metals at 7.1 percent and glass and building materials at 6.4 percent.
The chemical industry recorded the smallest relative decline at 5.5 percent, though it still shed 18,300 jobs. Petroleum refining was the outlier, adding 1,000 workers, a 5.8 percent increase.
In 2024, energy-intensive industries accounted for 75.6 percent of total industrial energy consumption. The chemical industry alone consumed 27.9 percent, followed by metals at 23.7 percent and petroleum refining at 10.7 percent. Natural gas was the leading energy source at 26.3 percent, followed by petroleum products at 21.0 percent, coal at 18.1 percent, and electricity at 15.2 percent.
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