The regional skilled trades economy has lost considerable momentum over the last three months. According to a recent survey by the Stuttgart Region Chamber of Skilled Crafts, the mood among entrepreneurs is described as subdued. However, 53% of those surveyed still gave their business situation a good report card in the fourth quarter. In the same quarter of 2019, 74% of companies reported a good […]
The regional skilled trades economy has lost considerable momentum over the last three months. According to a recent survey by the Stuttgart Region Chamber of Skilled Crafts, the mood among entrepreneurs is described as subdued. However, 53% of those surveyed still gave their business situation a good report card in the fourth quarter. In the same quarter of 2019, 74% of companies reported a good business performance.
Managing Director Thomas Hoefling emphasized that the development of the individual trades varied greatly. “The main construction and finishing trades performed best. The catastrophic economic situation in the sectors directly and indirectly affected by the closures, such as hairdressers and beauticians, was not surprising.”
Although the medium to long-term outlook is positive, the infection situation has businesses firmly in its grip and is therefore also dampening the mood. “The situation is really difficult for many businesses at the moment. But we know from the past, for example from the financial crisis in 2009, that the skilled trades can quickly pick up again. That’s why we are looking forward to the second half of the year in particular with hope,” Hoefling comments on the situation. However, many companies have used up their reserves in the meantime. In order to cushion the harsh government restrictions and thus protect companies, their employees and trainees, the financial aid must now be paid out quickly and with significantly fewer bureaucratic hurdles. “After all, it is our companies that generate the taxes and levies with which the state is currently fighting the crisis and will later finance the economic consequences of the lockdown,” warns the head of the chamber.
According to the survey, regional trade businesses are concerned about their future business development. A continuation of the current business development is expected by 55% of those surveyed. In contrast, 35% of companies fear that their business situation will deteriorate. The economic indicator for the skilled trades lost 31.6 points compared to the previous year and fell into negative territory in the fourth quarter of 2020 with -0.3 points (previous year: +31.3 points).
In the past three months, the order curve for skilled trades businesses in the Stuttgart region has also fallen due to coronavirus, as has the turnover curve. As a result, capacity utilization in recent weeks was not as high as in the same quarter of 2019, with fewer companies reporting high or very high capacity utilization than a year ago. In contrast, more companies reported lower capacity utilization – their share was 27% (same quarter of the previous year: 10%). Companies in the chamber district are correspondingly cautious in their expectations regarding upcoming orders and sales for the coming weeks.
Employment has fallen slightly in the last few weeks in the skilled crafts companies in the Stuttgart region. Looking ahead to the coming weeks, the skilled crafts entrepreneurs surveyed also want to be cautious in their personnel planning.












