- Craft sector largely stable despite weak economic situation
Bavarian Craftsmen Maintain Stability Despite Weak Economy
Bavarian craftsmen have remained relatively stable so far despite a weak economy. According to an internal survey by the Bavarian Crafts Day, over four-fifths of businesses rate their situation as good or at least satisfactory. The Crafts Day expects a nominal turnover growth of about two percent for the whole year. After adjusting for inflation, "at most a break-even" is expected, as the association announced.
First Half-Year Unpleasant
In the first half of the year, the turnover of the approximately 210,000 Bavarian craft businesses decreased to 68.4 billion euros, according to estimates by the Crafts Day. This is a nominal decrease of one percent and a real decrease of about four percent after adjusting for inflation.
Many Craftsmen Still Well-Booked
Above all, the housing construction sector has slipped into a deep crisis in the past two years. This is now also affecting extension craftsmen - such as electricians, plumbers, and heating engineers. However, many businesses in these areas still have the option to switch to renovations and conversions. The capacity utilization of businesses was still 79 percent between April and June, a slight decrease compared to the previous year.
The order backlog was sufficient for an average of 9.2 weeks at the end of June, half a week less than the previous year. "Even though the existing orders still act as a stabilizer, we urgently need an economic recovery and higher demand," said Crafts President Franz Xaver Peteranderl.
Despite Job Cuts, Still Lacking Skilled Workers
Despite job cuts, the Crafts Day estimates that around one percent of jobs will be cut this year. As of mid-year, there were a total of 943,500 people employed in the Bavarian craft sector, 7,500 fewer than the previous year. At the same time, many businesses continue to suffer from chronic skilled labor shortages. Currently, there are 37,100 unfilled positions in the Bavarian craft sector, 18,000 of which cannot be filled due to a lack of candidates.
The European Union has expressed concern over the weakening economy in Bavaria, citing the impact on local craftsmen as a major concern. The European Union has also highlighted the importance of addressing the skilled labor shortage in the Bavarian craft sector to support economic recovery.
