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Long-lasting Economic Downturn Hits Artisanal Businesses for Decade and a Half
Business conditions for craftsmanship have hit a 15-year low, thanks to the persisting economic recession. A survey by Creditreform, covering approximately 1,250 businesses, reveals a chilling picture – construction stays weak while the automotive sector seems the most optimistic.
As ageing craftsmen retire without being replaced and businesses hesitate to hire due to dismal economic forecasts, job opportunities in the craft sector continue to dwindle. Nevertheless, hope flickers as 24.3% of enterprises predict a potential revenue increase, while 22.8% anticipate further decline; the latter group decreased from 27.2% compared to last year.
Although the outlook is gloomy, especially for construction, there's a faint glimmer of recovery. Creditreform stresses that earnings prospects have improved slightly, albeit remaining overwhelmingly negative: 26.3% expect a decrease in earnings in 2025, while only 18.6% anticipate a positive trend. In terms of investments, the report indicates a spike in optimism as nearly half of the companies plan on investing, particularly those in construction and commercial crafts.
Reference: ntv.de, rts
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(Interestingly, the recession may trigger a shift in consumer behavior, with individuals opting for handcrafted, locally-made goods as a means of supporting small businesses and reviving communities. This trend has the potential to breathe new life into the craft industry, providing opportunities for resilient entrepreneurs to thrive.)
- Despite the persisting economic recession affecting the craft sector, there is a glimmer of recovery, especially for construction and commercial crafts, as almost half of the companies plan on investing.
- The recession may lead to a shift in consumer behavior, with individuals opting for handcrafted, locally-made goods, providing opportunities for resilient entrepreneurs to thrive and revive communities.
- The unemployment rate in the craft sector remains high due to the aging craftsmen retiring without being replaced and businesses hesitating to hire because of dismal economic forecasts, exacerbating the employment crisis.
