Craftsmen are in demand, many are working on existing orders – and private consumption is also picking up again. The central association still speaks of clouded expectations.
The trade considers the business situation to be stable. This emerges from the economic report of the Central Association of German Crafts (ZDH) for the third quarter, which is available to the German Press Agency.
As in the same period last year and in the first quarter of 2023, 48 percent of the craft businesses involved in the underlying surveys rated the business situation as good. Expectations are therefore clouded, but somewhat less pessimistic than a year ago.
According to the ZDH, demand for handicraft products and services was stabilized by falling energy costs and a slight increase in private consumption. In addition, the high order backlog built up in previous years provided support. On the other hand, the situation in the construction industry was not very rosy, where high material and increased financing costs led to a significant setback, particularly for new residential buildings.
Business expectations suggested a significant downturn in the construction sector. However, things were looking up in the motor vehicle industry, which benefited from significantly increased sales figures for passenger cars. The workshops benefit from more readily available spare parts. The report is based on surveys by chambers of crafts and guilds, in which, according to ZDH, 22,671 companies took part.
Demand for relief
ZDH General Secretary Holger Schwannecke spoke of “overall clouded and very pessimistic business expectations, especially in the construction industry”. He called for political decisions to improve competitiveness. The trade is loyal to the location and does not move abroad. “That’s why it’s so important for craft businesses that there are no additional burdens, but on the contrary that relief is finally provided in terms of bureaucracy and taxes.”
Schwannecke listed a number of construction sites: “Securing skilled workers and strengthening vocational training, reducing bureaucracy, affordable and reliable energy, lower tax and social security burdens, accelerated planning and approval procedures, more speed in infrastructure expansion and digitalization.”
According to Schwannecke, large-scale layoffs in the skilled trades are not an issue. “Rather, declines in employment are primarily due to the fact that positions cannot be filled or filled due to a lack of skilled workers.” This is due to demographic developments, “but also to a decades-long, far too one-sided educational policy focus on the academic sector.” Vocational training has fallen behind and needs to change.
Crafts against industrial electricity prices
Schwannecke complained that the federal government was missing an overall concept for the reliability and affordability of energy. “In order to achieve competitive energy prices, reducing the electricity tax to the European minimum would be a suitable and important first measure from the perspective of the trades.” He spoke out against the reduced industrial electricity price advocated by Federal Economics Minister Robert Habeck, as this only benefits a few but must be financed by the general public.
Source: Stern
