Christmas business for arts and crafts is going well

Despite US tariffs and the poor economic situation, the arts and crafts sector in the Ore Mountains is counting on good Christmas business. "We are right in the middle of it, the season has got off to a good start," Frederic Günther, head of the Association of Erzgebirge Craftsmen and Toy Manufacturers, told the German Press Agency. With the start of the Christmas markets, sales would pick up again, as would online stores and specialist stores.

Even if the economic situation is poor and unemployment is rising, it has been shown in the past that people treat themselves to something at Christmas, explains Günther. "You need something for the heart." Especially in difficult times, many people turn to tradition and appreciate things that last. This includes arts and crafts from the Ore Mountains, which have been part of the intangible cultural heritage since this spring.

2026 price jump expected due to rising wages

However, prices for smokers, candle arches, nutcrackers and the like are on the rise. Every year there are price increases of 3 to 5 percent, says the head of the association. Next year, a stronger increase of around 10 percent is expected. The reason for this is the higher minimum wage, which will then affect wages across the board within the industry - and also prices due to the high proportion of manual labor.

Optimistically, Andreas Bilz, CEO of Seiffener Volkskunst eG, is looking forward to the current Christmas business. His company employs 44 people and produces all year round - including for customers overseas. This includes around 15,000 nutcrackers alone. The company also operates a show workshop where visitors can look over the employees' shoulders.

The five to six weeks before Christmas are the busiest time of the year in terms of sales, says Bilz. His company generates around half of its revenue during Advent. However, many retailers stock up on goods earlier. New products are also brought onto the market time and again. This year, this includes an incense figure depicting US President Donald Trump.

Uncertain impact of US customs policy on demand

However, its customs policy is also affecting the arts and crafts sector. Exports account for 20 to 25 percent, the majority of which is accounted for by the USA (around 80 percent), explains Günther. Since the end of August, tariffs of 15 percent have also applied to these products. However, many goods were delivered to retailers before this date. The extent to which the tariffs will affect demand in the USA therefore remains to be seen. "This year we have still slipped through," says Bilz.

International developments and crises do not stop at arts and crafts in the Ore Mountains. Birch plywood is still scarce and expensive, explains association head Günther. The background to this is the Russian war of aggression against Ukraine and the sanctions imposed on Russia and Belarus as a result. If anything, the situation has worsened, as there were initially still stocks at dealers, says Günther. The plywood is mainly used for candle arches.

This year, there were also reportedly supply problems with musical movements for music boxes, which are sourced from a supplier in Japan. The exact reasons are unclear, says Günther. "This affects an entire product group." As a result, orders could not be fulfilled. However, a remedy has now been found.