Hesse’s craft sector battles rising costs and stagnant demand in 2025

From shrinking orders to tighter margins, Hesse’s artisans fight to stay afloat. Can a fragile uptick in apprenticeships turn the tide for struggling workshops?

, and Administrator

2026 January 15 . 5:41 PM

1 min read

The image shows an old black and white photo of a factory with people working on a machine,... — The image shows an old black and white photo of a factory with people working on a machine, surrounded by metal rods, poles, and other objects. At the bottom of the image, there is text that reads "New Eisenglebeerei, the first factory in Germany".

Hessian Crafts Expect No Real Growth by 2026 - Hesse’s craft sector battles rising costs and stagnant demand in 2025

The craft sector in Hesse faced another challenging year in 2025, with rising costs and stagnant demand putting pressure on small business ideas. Despite a slight increase in apprenticeship numbers, over half of Hesse’s small business loans struggled with higher procurement costs, squeezing profit margins. A third of firms reported falling orders for the second year running. Employment levels stayed largely stable, but investment willingness dropped again. Companies remained cautious about spending, even as the number of registered craft businesses rose slightly to 78,532 by the end of 2025. Apprenticeship figures offered a small bright spot, with 9,935 new contracts signed—77 more than in 2024. Yet the total still falls short of pre-pandemic numbers. The persistent shortage of applicants remains a major concern, threatening the sector’s long-term workforce. Looking ahead, craft enterprises expect a modest one percent sales increase in 2026. After adjusting for inflation, however, growth is likely to remain flat. Industry representatives argue that without increased public investment and stable economic policies, a true recovery will stay out of reach. The craft sector in Hesse enters 2026 with cautious optimism, with sales potentially inching upward, but inflation and rising costs continue to weigh on businesses. Leaders stress that stronger financial and regulatory support will be essential to drive meaningful improvement in the coming years.