The Craft Industry in Bavaria is Shrinking - Bavaria's Craft Sector Shows Stability Amid Mixed Fortunes in Q3
Bavaria's craft sector has seen a mixed bag of fortunes in the third quarter, with revenue declining by 1.8% in real terms to €37.8 billion, while employment dipped by 1.3% to 951,400. Despite this, 82% of businesses report a good or satisfactory situation, up from last year. However, the president of the Bavarian Crafts Association (BHT), Franz Xaver Peteranderl, warns that structural challenges must be addressed to boost investment and competitiveness.
A survey of around 2,100 businesses revealed that while 31% still face shrinking demand, only 13% see an increase. Order books saw a marginal uptick, with fewer businesses reporting declining new orders. Looking ahead, 79% expect business conditions to improve or remain stable, up 3 points year-on-year. On average, craft businesses have orders covering the next 8.7 weeks, unchanged from a year ago. Peteranderl highlights the need for deep reforms to boost private investment, strengthen competitiveness, and create a sustainable economic recovery. He calls for a competitive tax level and social security system reform to tackle rising costs and encourage growth.
Bavaria's craft sector shows signs of stability but faces ongoing challenges. With revenue and employment down, and demand still shrinking for some, urgent reforms are needed to bolster investment and competitiveness. Despite this, businesses remain optimistic about the coming months, with order books steady and expectations of improved conditions.
