Craft sector hopes for orders from federal special funds - Mecklenburg-Western Pomerania’s craft sector struggles amid stagnation and weak demand
Mecklenburg-Western Pomerania’s craft sector faced a difficult year in 2023, with little growth and few signs of recovery. Economic stagnation has left many small business ideas struggling, though a few areas have shown modest improvement. The region’s 19,400 craft firms, employing over 112,000 people, are now looking to new funding and policy changes for support.
The construction and finishing trades saw a sharp drop in backlogs, while suppliers suffered from weak demand in industry. Unlike past downturns, most business closures came from retirements rather than insolvencies, as older owners struggled to find successors. The automotive trade, however, experienced a slight upturn, offering one of the few positive signs in an otherwise flat year.
To ease pressures, the state introduced a stipend for trainees in craft businesses and added a 'small construction approval' rule to the building code. More funding was also directed toward inter-company apprentice training and craft education centres. Yet, criticism grew over federal energy policies, which failed to cut the electricity tax or extend lower power prices to self-employed tradespeople. Looking ahead, the region expects €1.9 billion from a federal special fund over the next decade. The Bundeswehr has also announced plans for €3-5 billion in additional investments. These funds could provide much-needed relief, though concerns remain about long-term sustainability in the sector.
The craft sector in Mecklenburg-Western Pomerania continues to face challenges, from shrinking order books to an ageing workforce. While new funding and policy adjustments may help, the road to recovery depends on broader economic improvements. For now, businesses are relying on targeted support to stabilise operations and secure their future.
