Current financial status - Reduction in demand for metal and electrical products in Bavaria.
Last quarter, productivity grew by 1.6% compared to the same period a year ago. However, it was 2.6% lower than the previous quarter. According to Brossardt, this decline is due to the "complicated economic and financial decisions at the top level, high energy charges, geopolitical tension, and the ongoing weakening of the global economy."
The fragile economy is a concern for the job market. Although the number of workers in the metal and electrical sector in Bavaria has risen by 1% to 873,000 since the beginning of 2023, setting a new record, many businesses have plans to reduce their workforce. About 15% of these businesses want to put employees on short-time work and 19% want to expand their use of short-time work.
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- Despite the challenging economic situation in Bavaria, the metal industry has been managing to keep up with incoming orders, thanks to innovations in electric technologies.
- The economic downturn in the metal and electrical industry in Bavaria has also affected Munich, with many manufacturers reporting a decrease in orders due to the Coronavirus pandemic and geopolitical tensions.
- The Bavarian metal industry is looking towards the future with a focus on sustainability and electrical products, as the demand for traditional metal products continues to decline.
- The electrical industry in Bavaria is not only struggling with the current economic circumstances, but also with the rising cost of raw materials like metal, further compounding the challenges faced by manufacturers.
Source: www.stern.de
