Handwerkstag: Hoping that spending programs don't fizzle out - Thuringia’s Craft Sector Hopes for 2026 Recovery Through Public Investment
Thuringia’s skilled trades sector faced difficulties in 2025 and now looks ahead to 2026 with cautious optimism. Businesses are counting on major government investment programmes to boost demand and stabilise the industry. Despite ongoing challenges, the sector remains one of the region’s largest employers, with over 140,000 workers across 28,000 companies.
The past year saw few new hires beyond apprentices, though the number of trainees did rise slightly to over 3,000. Companies managed to keep their workforces stable but struggled with rising costs and shrinking order books. Investment reluctance remains high, with only five percent of firms planning to spend, while nearly half intend to cut back due to economic uncertainty.
The sector’s outlook hinges on expected funding from federal and state programmes. In 2026, businesses anticipate contracts from initiatives like KfW’s ERP-Gründerkredit and Universalkredit, as well as Thuringia’s own investment calculator scheme, which offers up to €10 million per project. Between 2023 and 2025, KfW channelled over €5 billion nationwide to small and medium-sized enterprises, with Thuringia receiving around €150 million in state aid for craft investments.
Infrastructure modernisation projects could provide a much-needed lift. However, uncertainty over municipal spending plans continues to dampen confidence. The industry is pinning its hopes on billion-euro government programmes to revive growth and secure long-term stability.
Thuringia’s craft businesses are bracing for a challenging 2026, with recovery dependent on public investment. The sector’s ability to maintain jobs and attract new contracts will rely heavily on the rollout of federal and state funding. For now, firms remain wary, focusing on cost control while waiting for clearer economic signals.
