Trade expects difficult year - impact on customers

Consumers - Trade expects difficult year - impact on customers

The skilled trades sector in Germany is expecting a difficult year - with consequences for consumers too. "Craft services will become more expensive because the costs for businesses will increase in many areas. And businesses will not accept orders if they are making a loss," said Jörg Dittrich, President of the German Confederation of Skilled Crafts (ZDH), to the German Press Agency.

"The future prospects are getting worse in all areas," said Dittrich. "The confidence that is necessary to achieve the gigantic transformation goals that politicians and we have set ourselves is no longer there." Even the plumbing, heating and air conditioning companies said that the order lead time had become smaller. "Half a year ago, they were still saying that we didn't have enough people to achieve the targets we had set and therefore the transformation." Reality and goals are drifting apart.

Difficult situation in construction

The number of building permits in Germany has been falling for months - expensive building materials and a sharp rise in interest rates are slowing things down. "The situation in construction and especially in residential construction has deteriorated once again," said Dittrich. The vast majority of measures agreed at a federal government "construction summit" in September have not yet been implemented. There is considerable uncertainty. "Housing construction is currently collapsing and this threatens to drag other areas down with it. Apartments that are urgently needed are not being built. There is also a delay in investment in commercial construction."

Consequences for customers

"Of course, a recession in Germany, inflation and cost drivers such as the soaring price of CO2 do not leave the skilled trades unaffected," said the president of the skilled trades. A general fall in prices is not in sight due to the overall situation.

There will also be longer waiting times of weeks or months. "The times when large contracts were awarded and the tradesman arrived the next day because there was so much capacity are a thing of the past. But I also don't think it's a disaster that larger investments such as a complete bathroom renovation or the tiling of an entire roof have a longer lead time." Consumers should not apply different standards to tradespeople than to other industries, where it is taken for granted that the delivery of individually ordered products often takes weeks or months. "It is important that the tradespeople arrive in emergency situations."

Clear expectations of the federal government

Companies have lost confidence in the reliability of political action, Dittrich made clear. The federal government makes announcements, but then follows them up with too little or no action. "That is simply not enough. The Chancellor says we want to make a pact for Germany. Where is it actually? A law to reduce bureaucracy was announced for this year. Where is the cabinet decision on this? The Chancellor met with the Minister Presidents and talked about speeding up approvals and planning. Where has all this been put into law? There are still too many announcements."

Companies want to invest in transformation and modernization. "But then it is also the duty of politicians to see whether and how companies can actually cope with this, whether their overall burden is still manageable." But the reality from Dittrich's point of view is that the overall burden of taxes, duties and documentation requirements is now a world record. "My impression is that politicians are still not aware of this. My big concern is that businesses will no longer be able to cope in the foreseeable future: We are already seeing a massive decline in investment and lending due to the multiple crises and previous policies."

The federal government is once again only making minor repairs, but is not tackling the necessary fundamental reforms and issues. Dittrich mentioned better education, a base load-capable energy system and the reduction of bureaucracy. "The economy and location must once again take center stage and have priority in political decisions. After all, the welfare state and the necessary investments in a strong and competitive location can only be financed with a flourishing economy."

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1. Jörg Dittrich, President of the German Confederation of Skilled Crafts (ZDH), expressed his concerns about the impact of increasing business costs on German craft services to the German Press Agency.
2. The German Press Agency reported that Dittrich, representing associations in the skilled trades sector, highlighted the poor future prospects and the lack of confidence in achieving transformation goals due to rising costs and expensive building materials.
3. In Berlin, Dittrich criticized the Federal Government for failing to implement many agreed-upon measures from the construction summit in September, contributing to uncertainty and a decline in residential and commercial construction.
4. As a consequence, Dittrich warned that consumers should expect higher prices and longer waiting times for skilled trades services like bathroom renovations or roof tiling, as capacities are no longer their former abundance.
5. To mitigate these challenges, Dittrich urged the Federal Government to prioritize economic and location policies, ensuring the GDP can finance necessary social welfare and investments, while addressing fundamental issues such as education, energy systems, and bureaucracy reduction.

Source: www.stern.de