RWI Konjunkturberichte

The craft sector benefited in a particular way from the upswing of the German economy. Sales increased stronger than in the economy as a whole, and employment increased. The high demand for handicraft services was associated with an increase in capacity utilization and order coverage. This also led to significant price effects. Nevertheless, the real sales growth of the handicraft also exceeded that of the overall economy. Growth is currently decelerating driven by bleak exports. Since domestic demand continues to be strong, the primarily locally oriented craft sector can be expected to perform well in the near future, too. Despite this positive picture, the craft sector faces major challenges. To enhance growth potential, the acquisition and retention of skilled workers as well as productivity must be improved. This can be accomplished by increasing the innovation capacity of the craft businesses. By doing so, the craft sector might succeed in limiting market share loss to non-craft competitors.

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