Less Assembly: The Skilled Trades Benefit from Local Proximity

Saxony’s small businesses generate the majority of their revenue within the state. According to the Handwerkstag, just under 85 percent of revenue is generated within a 50-kilometer radius. This represents a significant shift compared to 2013, when the figure was only 67.6 percent. Orders from abroad, at 0.8 percent, play virtually no role. 

“On-site” work is becoming less common

“In the past, companies also had to accept orders from more distant regions to utilize their full capacity and survive economically—think ‘on-site work.’ Today, that is becoming increasingly rare,” emphasized Andreas Brzezinski, spokesperson for the Executive Board of the Saxon Skilled Trades Association. Only 4.5 percent of total revenue in the skilled trades sector is now generated within a radius of 150 kilometers or more. 

Brzezinski pointed out that this is an advantage for businesses when recruiting skilled workers. “Balancing work and family life is playing an increasingly important role in the skilled trades. So it’s a positive thing when you’re not away from home for a week because of installation work.” 

More and more private clients

According to the Saxon Skilled Trades Association, there has also been a shift in revenue distribution in recent years. According to the report, the main customers for skilled trades services are private clients, who accounted for a good 61 percent of businesses’ revenue in 2025. In 2013, that figure was only 40.6 percent. Public clients have continued to lose ground. Their share currently stands at just 7.4 percent (2013: 13.8 percent). 

Skilled Trades Association Criticizes Public Sector Procurement Policy

“This is also a result of a misguided public sector procurement policy, where the cheapest bidder almost always won the contract. That has worn companies down,” Brzezinski commented on the figures. Especially in rural regions, which face major demographic challenges, the shift toward private customers is having a detrimental effect. “Many businesses are wondering whether their business model will still be viable in ten years’ time, given an increasingly aging society.” 

Skilled trades hope for contracts from the federal government’s special fund

Local governments must use the special fund to counter this trend and drive significant investments in the coming years, Brzezinski explained: “Skilled trades businesses expect to be compensated with fair prices. The money flows back into the regions in the form of value creation, business taxes, and donations to clubs and festivals.” 

The Saxon Skilled Trades Association represents more than 54,000 skilled trades businesses, which employ approximately 280,000 people. Last year, they generated revenue of just under 36 billion euros.