Bavaria's Craft Industry Shrinks Slightly - Bavaria's Craft Sector Shrinks for Fifth Year but Holds Onto Hope
Bavaria's craft sector faced another difficult year in 2025, marking five straight years of declining business. Despite economic challenges, many firms remain cautiously optimistic about the future. A new survey reveals that four in five businesses still rate their situation as good or satisfactory under current conditions.
The sector's revenues dropped by 2.1 percent in real terms, falling to just under €152 billion. Employment also shrank by 1.3 percent, leaving around 956,000 workers in the trade. Demographic shifts are expected to push numbers down by another one percent in the coming year.
Job centres report 30,000 open positions, with 13,000 of them impossible to fill due to a shortage of skilled workers. Meanwhile, succession planning has become a pressing issue, as roughly 31,000 businesses prepare to hand over to the next generation.
On a brighter note, apprenticeships saw a slight rise. By the end of 2025, craftspeople had taken on around 29,000 new trainees—1.3 percent more than the previous year. Looking ahead, three-quarters of firms expect either stable or improved conditions as 2026 begins.
The sector continues to grapple with falling revenues, labour shortages, and an ageing workforce. Yet apprenticeship growth and cautious optimism suggest some resilience. Firms now face the challenge of securing skilled workers while adapting to ongoing economic pressures.
