Passing on the burdens - Cost increase for trade services not over yet
Consumers have to prepare for even higher prices for craft services. Crafts Council President Jörg Dittrich told the German Press Agency that costs and wages are rising, while turnover is slightly decreasing. "I understand that there are people who ask: 'Why are craftsmen so expensive?' We share this concern as a craft sector, because we are dependent on customers who can afford our services and products."
If craft services become unaffordable, there is a risk that offers will disappear or, alternatively, shift into the black market, according to the President of the Central Association of German Crafts. "This is neither in the interest of crafts nor society. Where we already see this threatening development to some extent is among hairdressers. The challenges for labor-intensive business sectors are particularly great due to the rising social security contributions. The craft sector is particularly affected here." It is crucial that the labor factor be relieved.
Concerns over creeping decline
Dittrich had already stated that the craft sector has been warning for years that contributions are getting out of control if the financing of social insurance systems is not fundamentally reformed.
In the craft sector, there is a visible concern that it is declining gradually. "There is a lack of reliability in political decisions and a lack of planning security: This keeps many craft businesses from making investments. However, private investments in large quantities are needed to get the economy moving again."
- Jörg Dittrich, the Crafts Council President, mentioned that the German Press Agency that due to rising costs and wages, along with a slight decrease in turnover, consumers might face higher prices for craft services.
- The President of the Central Association of German Crafts expressed his worry that if craft services become too expensive, they might disappear from the market or shift into the black market, which is neither beneficial for the craft sector nor society.
- In response to the challenges in labor-intensive business sectors, such as crafts, caused by rising social security contributions, Dittrich had previously called for the need to relieve the labor factor.
- The craft sector has been voicing concerns for years that social insurance contributions are getting out of control, and if the financing of these systems is not fundamentally reformed, it could lead to a creeping decline in the sector.
- A lack of reliability in political decisions and planning security is keeping many craft businesses from making investments, and significant private investments are required to get the economy moving again to counteract this gradual decline in the craft sector.
