Craft boom in Mannheim: tender hope meets setbacks

Craft boom in Mannheim: tender hope meets setbacks

The mood in regional crafts remains mixed, even in the second quarter of 2025. According to the latest reports from the Chamber of Crafts Mannheim Rhine-Neckar-Odenwald Although there are initial rays of hope after a rather weak start to the year, a sustainable recovery is still a long way off.

In the current survey, 52% of companies rate their business situation as “good” – however, this is a decrease of 4% compared to the previous year. 11% of tradesmen are dissatisfied with their business situation, which represents a slight increase. While 27% of those surveyed expect an improvement in the coming quarter, the figures show that many are standing still: 57% of companies expect the situation to remain the same.

Order situation and operational capacity utilization

However, the order situation is less encouraging. 31% of companies are reporting increasing incoming orders, which represents an increase of 4% compared to 2024. On the other hand, 28% are reporting declines. When it comes to operational capacity utilization, 52% of companies state that they are operating at more than 80% capacity, which represents a significant increase compared to the previous year. The automotive trade and the expansion sector in particular show above-average figures, while the construction trade has to accept significant losses in capacity utilization.

As far as the sales situation is concerned, there are negative trends: only 26% report increasing sales, which corresponds to a decline of 3% compared to the previous year. In contrast, 31% of businesses have declining sales, which represents an increase. The economic index is falling into negative territory and 38% of businesses have already increased their sales prices to cover increased costs.

Employment and investment plans

Employment developments also show bleak signs: only 8% of companies recorded an increase in employees, while 20% reported a decline. There are also problems with investment plans, as only 7% of companies plan to invest more in the near future. Here you have to ask yourself: What is the motivation of entrepreneurs to invest in an uncertain market?

The ZDH economic report, as published by Gernoth.de reports, describes the economic situation in German crafts as mixed. Above all, the weakening construction sector and declining demand from industry are causing more and more companies to perceive the situation as tense. A key point remains the shortage of skilled workers, which has serious consequences in almost all areas.

Conclusion and outlook

The results are a clear signal: craft businesses have to face new challenges, be it due to increasing costs for materials and energy or delivery bottlenecks that have a negative impact on business processes. This makes targeted measures all the more important to relieve pressure on the labor market and promote innovative solutions. The demands for sustainability and environmental protection are increasing, and the trades are responding with more environmentally friendly offers.

Ultimately, the situation in the craft sector remains tense. A look at the forecast developments shows that, despite the positive trends in some trades, there is no quick recovery in sight. In order to survive here in the long term, our craft businesses will continue to need creative solutions and adjustments.

Further information and advice for the trades can be found at Chambers of Crafts available. These offer comprehensive support in areas such as starting a business, innovation and technology consulting as well as personnel consulting.