Customers may pay more for home renovations and repairs as German craft businesses face rising costs. Holger Schwannecke, secretary-general of the German Confederation of Skilled Crafts (ZDH), told dpa that higher energy prices and more expensive metals, building materials and some electronic components are adding to the pressure. Rising wages and payroll-related costs are also feeding into businesses’ quotes, he said.
The ZDH’s latest business survey indicates that companies expect selling prices to continue rising, and to do so more sharply. Schwannecke warned that more expensive services could make necessary work harder for customers to afford. He called for relief from energy and labor costs to help keep craft services accessible.
The sector has so far gained little from the stronger growth forecast for Germany’s economy. Schwannecke said the government’s projected 1.3% growth had brought few benefits to craft businesses. He said growth was being driven mainly by exports, while domestic demand remained weak and spending from special funds had so far generated few additional orders for the sector.
Businesses also face high energy and material costs and supply bottlenecks. In the ZDH’s autumn survey, craft firms rated their current situation worse than a year earlier, while their outlook weakened and order backlogs continued to fall. Schwannecke urged the government to pursue competitive energy prices, less bureaucracy, lower taxes and payroll costs, and greater planning certainty.
Sources: Der Spiegel.