Handwerkstag: Hoping that spending programs don't fizzle out - Thuringia’s skilled trades struggle as investment dries up in 2025
Thuringia's skilled trades sector is facing a challenging period. With approximately 28,000 businesses and over 140,000 employees, it remains one of the state's largest industries. However, uncertainty about economic prospects has led to low investment and shrinking order books.
In 2025, the sector struggled with rising costs and weak demand. The average order backlog fell to just eight weeks, leaving many businesses cautious. Only five percent of firms plan to invest, while nearly half intend to reduce spending.
Trades supplying industrial clients are under particular pressure. High costs and little hope of a quick recovery have made conditions tough. Despite this, the workforce has been maintained, and the number of new trainees rose slightly to over 3,000 in 2025. The outlook for 2026 depends heavily on public investment. The federal and state governments will release billions in funding through large investment programs. The federal government has allocated 126.7 billion euros for projects like infrastructure and heating upgrades, while Thuringia's 1 billion euro communal program (2026–2029) will focus on school renovations and local improvements. These projects are expected to generate new orders for craft businesses. Efforts to boost investment include economic reforms and cutting red tape. Such measures aim to make investing more attractive, though current reluctance remains high.
Thuringia's skilled trades are waiting for a turnaround. The planned 2026 investment programs could bring much-needed contracts, but cautious optimism persists. For now, businesses continue to face low order backlogs and high cost pressures.
