Pressure on the painting and varnishing trade is increasing

The economic situation in the German painting and decorating trade remains strained. In addition to high cost increases, declining orders from private customers are dampening the industry's revenue expectations.

The economic situation in the German painting and decorating trade has not improved. Companies in the sector are cautious about their revenue expectations due to rising costs and declining orders from private customers. This is one of the findings of the latest economic survey conducted by the German Association for Painting, Decorating and Building Protection (Bundesverband Farbe Gestaltung Bautenschutz).

The revenue outlook for the second half of 2025 was positive for 41 percent of the painting and decorating companies surveyed. Currently, only 30 percent share this view. At the same time, the number of companies with negative revenue and profit expectations increased by between eleven and thirteen percentage points. 

This trend is also reflected in the order backlog. Since 2024, the order backlog has remained consistently low at around eleven weeks. By comparison, in 2023 this figure was 14,3 weeks. The main reason cited by 74 percent of the surveyed companies for the negative outlook is the difficult order situation in the private customer sector.

Significant price increases

With an increase of seven percentage points, the subdued consumer and investment climate tops the list of burdens this year, followed by rising labor costs at 73 percent. Inflation (53 percent) and the challenging economic and political environment (51 percent) also continue to pose difficulties for the painting and decorating trade.

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This year, businesses are facing particularly significant price increases of around 32 percent for fuel costs. Operating and energy costs have risen by 18 percent. "We are currently seeing a marked reluctance among both private clients and industry. Non-essential renovations are increasingly being postponed," explains Guido Müller, President of the Association.

"At the same time, in a deteriorating consumer climate with increased price sensitivity among our customers, we are confronted with cost increases in all areas. This makes long-term planning and sound calculations impossible and puts our businesses under pressure. What the skilled trades in Germany need now are well-thought-out structural reforms and economic and political stability."

Businesses predominantly operate within existing structures

Over 60 percent of businesses expect employment to remain unchanged. 17 percent of the surveyed entrepreneurs anticipate a decline in employment. Regarding their competitiveness, 61 percent of businesses face challenges but currently feel well-positioned. However, almost a quarter are struggling to compete against their rivals or are grappling with a lack of orders and a loss of market share.

The revenue ratio between renovation and new construction projects remains relatively constant – around 86 percent of the surveyed companies now work on existing buildings. Renovations and refurbishments thus constitute the core of their service portfolio. Interior work accounts for the largest share at approximately 59 percent, followed by painting work on building exteriors at about 26 percent. The highest-revenue areas within these categories include traditional painting work at 29,9 percent, followed by facade coatings at 16,5 percent and wallpapering at 11,3 percent.

Source: Federal Association for Paint, Design and Building Protection

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