Financial report for 2024 - Sentiment in Saxony's skilled labor remains dismal.
The continuing chaos in Germany's construction industry has left craftspeople in Saxony feeling uneasy. These workers are still expressing doubts and concerns over their future business prospects, as revealed by Andreas Brzezinski, the managing director of Saxon Crafts Day. Most units reckon a decrease in orders and sales is imminent. "At this point, we can't talk of any recovery, at least in the craft sphere," he shared during the unveiling of the economic survey 2024 in Dresden.
Political action is what these industries crave the most, according to Brzezinski. Both businesses and consumers require investment boosts and a reassuring sense of certainty from the government. But these companies are dealing with many challenges, including a lack of consumer spending, a dearth of skilled workers, unstable interest rates, steep energy costs, and bureaucratic hurdles. "Politics needs to provide strong stimuli that can help the craft sector recover from this lethargic economy," he added.
The survey involved 1,293 companies, and only 39% appraised their present business situation positively, which was significantly less than the 48% rating in 2023. For 17% of the respondents, their situation was awful or deteriorating, while 66% anticipated only stable progress in the coming weeks.
The major construction and building trades reported a slight improvement in the good/better category (33%), but 16% and 44% evaluated their situation as bad. Similar patterns are found in areas such as mechanical engineering, electrical work, metalworking, optics and audiology, and foodstuffs. However, the automotive trade and services like hairdressers and goldsmiths remain stable.
Product sales and service provision have seen significant reductions compared to 2023, with over a third of the companies recording losses. One-half of the respondents managed to enhance their prices in sales, though this shows a worrying sign for the construction crisis. The order scenarios also exhibit a distinct downturn, from the major construction sector, personal service providers, and the commercial world. More than 40% of the companies terminated their spending less hurriedly.
Uwe Nostitz, the president of the Handwerkstag, urged the government to build the ideal settings for Saxon economy development. He demanded greater stimuli for self-employment, enhanced security, and a strategic plan to expand transportation corridors. The Handwerkstag advocates for about 55,000 companies and their 290,000 employees, as well as 15,000 apprentices.
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