Skilled trades see the black and draw a sobering balance

The hope of a turnaround is fading in Saxony's skilled trades sector. The downward trend among businesses is continuing, according to the Saxon Crafts Day at the presentation of economic data. Only a third of companies still rate their own business situation as good. In spring 2019 - the last year without crisis mode - the figure was more than twice as high at 70 percent. All trades were affected.

"Businesses lack any confidence"

According to Andreas Brzezinski, spokesperson for the College of Managing Directors of the Association of Skilled Crafts, businesses lack any confidence that conditions will change. They have heard a lot of announcements from politicians, but none of this has actually materialized in everyday life. 30 percent of companies expected business to be worse in the coming months (2019: 7 percent). Only 16% believed there would be an improvement.

Current crisis differs from previous ones

"I don't see anything going in the right direction at the moment," summarized Uwe Nostitz, President of the Association of Skilled Crafts. There have also been crises in the past. A new experience, however, is that nobody can see any light on the horizon. The problems have been addressed for years, but everyone has the feeling that nothing is changing. Brzezinski spoke of a "multiple crisis". This is weighing on the minds of employers and employees.

Construction industry now one of the problem children

In the current economic survey, 20 percent of companies described their current business situation as poor (2019: 4 percent). "The construction industry used to be the driving force behind the economy. Now it is one of the problem children," said Brzezinski. The number of building permits is increasing. At the same time, however, less is being built than at any time in the last ten years. He cited high construction costs and rising interest rates as the reason for this.

The skilled trades are also suffering from a weakening industry

40% of companies (2019: 11%) have suffered a decline in turnover in recent months, was another finding. "The industry is clearly weakening. Suppliers from the skilled trades are receiving fewer orders. Private customers are currently unable to fill this gap," said Brzezinski. The skilled trades are usually unable to benefit from major investments in the industry because general contractors are being used.

"Craftsmanship must remain affordable for large sections of the population"

"Craftsmanship must remain affordable for large sections of the population and must not become a luxury good for an elite circle," Nostitz clarified. Today, a tradesperson has to work an average of five hours to afford a tradesperson from their own industry for one hour. This ratio used to be around 2:1. The rising costs are weakening investment power and competitiveness.

Call for reform of social security systems

The Handwerkstag called for a reform of the social security systems. The main driver of high costs is social security contributions. "We have reached a real tipping point here. If costs continue to rise, the risk of undeclared work will also increase," emphasized the president.

Handwerksstag wants more student internships

Another demand concerns the next generation. "The profile of secondary schools as a talent factory for vocational training should be sharpened." For example, the number of internships during school should increase. The more experience students gain in companies, the higher the likelihood that drop-out rates will fall, they said. Currently, between 10 and 15 percent of apprenticeship contracts are terminated prematurely.

The Saxon Crafts Association represents more than 54,000 companies with a total of around 280,000 employees. In 2025, turnover was just under 36 billion euros. The electrical and metal trades account for the largest number of businesses in the trades requiring a license. Health and personal care and the cleaning trade dominated the business areas for which no license is required.