Economy in East Bavaria: waiting three months for a craftsman – Regensburg – News

by Bernhard Fleischman

July 19, 2022

Only the healthcare industry is optimistic about the future. With the current crisis, almost all other craft groups are assuming that their business situation will worsen rather than improve. Photo: Falk Heller

Regensburg.For most East Bavarian craft businesses, everything should remain as it is. You have a lot of orders, the workload is very heavy.

86 percent of the surveyed companies assess their situation as good or satisfactory, according to an economic report by the Lower Bavaria-Upper Palatinate Chamber of Crafts for the second quarter of 2022, which the organization published yesterday in Regensburg. But there are great fears that things can’t stay that way. Every fifth company expects the situation to worsen within three months.

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What is good for businesses right now sometimes makes life difficult for customers. Considering the industry as a whole, customers waited 12.7 weeks for their trader on average, informs Chamber of Commerce CEO Jürgen Kilger. This is another record period. It even exceeds the waiting time of the previous quarter, which has already peaked. Customers who needed a craftsman from the finishing industry needed even more patience: the average waiting time is now 15.6 weeks.

Sometimes even more orders

The Chamber sees it from the companies’ point of view: The economic report shows that over half of the companies managed to keep the inflow of orders at a constant level despite difficult general conditions. Almost a quarter of them posted even more orders than in the previous quarter. Increasing orders were recorded especially by companies from crafts for private use, in the food industry and in the trade of motor vehicles. Usage has increased significantly, especially in the health sector, for commercial purposes, in the automotive and food industries. Most establishments call them average or good.

While artisanal enterprises often have more work to do, the number of employees is not increasing. Already in the third quarter, more companies (16%) recorded a decline in employment than an increase (13%). The recovery in the second quarter, which was typical before the corona pandemic – more workers are employed and fewer exposed – has not materialized again.

“The order books of the craft businesses in East Bavaria are still very full,” said Kilger. On the one hand, this “yet” expresses the fact that the level is already very high. On the other hand, the construction industry is already struggling with a disadvantage and bleak prospects.

Prices continue to rise

And there are long-term detrimental changes. Global price rises are worrying – first of all for customers, and later also for craftsmen. According to the chamber, about two-thirds of companies have already raised prices, the same as in the previous quarter. According to estimates, the end of prices is far from being reached. According to a survey, 85 percent of companies expect their purchasing prices to rise, and about two-thirds expect their own prices to rise.

Broken down by industries, it shows that 70 percent. construction companies raised prices, and in the finishing industry up to 76 percent. The development in the food industry was even more pronounced. Almost all suppliers (88%) have raised prices here, and none of them are lowering their prices. On the other hand, the picture in the health sector is relatively moderate: according to the data, only a quarter have raised prices here.

Prospects are uncertain. On the one hand, the procurement situation is excellent, on the other, there are crisis scenarios with possible drastic consequences for the population and the economy. It is difficult for companies to judge how it all works. Kilger explains that after more than two years of Corona, uncertainty reigns. As staff and resources have become scarcer and the overall situation has changed, businesses are no longer as strong.

More articles from this section can be found in the City of Regensburg section.

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