Elevated inflation contributes significantly to an enhanced revenue growth for German artisanal businesses.
In 2022, rampant inflation provided a substantial financial lift to Germany's handicraft sector. The 570,000 handicraft businesses raked in roughly 720 billion euros – a 9.3% surge compared to the prior year, according to data released by the Federal Statistical Office in Wiesbaden on Thursday. This substantial growth was primarily driven by inflation – Germany's consumer price index climbed by a substantial 6.9% in the same period, as reported by statisticians.
Although the craft industry boosted its revenue, it accounted for a smaller pie in the overall economy, with its share slipping by 1.1 percentage points to 7.4%. This suggests that while the sector fared well, not all aspects of the industry ran smoothly.
The field with the highest revenue growth was handicrafts made for personal use (15.6%), followed closely by handicrafts for industrial purposes (11.0%) and the construction industry (10.5%).
There was a minimal 0.3% increase in the number of handicraft businesses in 2022, making up 16.6% of all businesses in Germany. Consequently, 5.4 million individuals were employed in the sector, with 4.1 million of them contributing to social insurance. Statisticians stated that a significant 13.0% of all socially insured employees in Germany worked in the handicraft sector.
The year of manufacture for the majority of these handicraft products that saw an increase in sales is likely to be from 2021 or earlier, as the surge in revenue is compared to the prior year. This growth in revenue could potentially incentivize handicraft businesses to update their equipment or machinery, requiring them to consider the year of manufacture when making investments.
