RWI Konjunkturberichte

The craft industry is an important part of the small and medium sized firm sector in Germany. With 600.000 companies and 5 million employees it plays a considerable role in the German economy. The goods and services supplied by the craft industry are almost entirely directed towards the domestic demand. That is why these enterprises do not benefit from growth which is fostered by exports. Since the economic crisis in 2008/2009, the domestic demand has become the driving force that pushes the economic activity in Germany. This development should have been advantageous for the craft industry. However, firms in the fraction of the craft industry that are liable to admission (Meisterpflicht) had to accept losses in revenues (-0.8%) in 2013. Those other firms which do business in crafts where no approval to open a business is required could increase their turnover by 0.9%. The craft enterprises in the health and in the food processing sector could improve their sales, whereas the main and finishing construction industry, the car-repair shops and the small and medium sized subcontractors could not reach the turnover level of 2012 in 2013. But in spite of that shortterm trend, the craft industry came out of the last year with a strong momentum. Already in the second half of the year 2013 the demand for crafts services and goods accelerated again. This development continued in the first half of 2014. We expect a growth of turnover in the craft industry of 2 to 3% and an expansion in employment of 0.5 to 1% for 2014.

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