Overview

• The German handcraft sector's business confidence index has dropped to 45.8 points, its lowest level in 15 years, reflecting ongoing economic challenges.
• Insolvencies in the industry rose by 18.9% in 2024, with 4,350 cases reported, marking the highest level since 2016, particularly affecting construction-related trades.
• Declining revenues and tightened profit margins have led to job cuts, with 80,000 fewer employees reported in the sector last year.
• Labor shortages persist, with over 125,000 open positions reported, and the actual demand for skilled workers estimated to be significantly higher.
• Despite difficulties, nearly 25% of businesses expect revenue growth in 2025, and investment activity has reached its highest level in years, signaling cautious optimism for the future.