The Först family of entrepreneurs with Andreas Ehlert (right), President of the Düsseldorf Chamber of Skilled Crafts. Frank Först is not pictured – he was attending an important construction meeting. A new subway line is being built in Düsseldorf. A major project for the long-established metal construction company. (Photo: © Kirsten Freund)
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April 2026
The skilled trades sector is stagnating. High energy and material costs are hindering businesses. Andreas Ehlert, president of the Düsseldorf Chamber of Skilled Crafts, is calling for a reduction in electricity taxes and other reforms.
The Düsseldorf Chamber of Skilled Crafts (HWK) has presented its spring economic report . The central message: The economy in the skilled trades sector continues to stagnate . "We are in the fourth year of a phase without any significant growth," said Chamber President Andreas Ehlert to the press. The usual spring upturn has failed to materialize for businesses. With over 61.000 member companies, the Düsseldorf Chamber of Skilled Crafts is one of the largest self-governing economic bodies in Germany. Cost pressures – particularly due to rising fuel prices – have intensified considerably recently. Ehlert: "The rapid price increases are having a significant impact."
The Chamber offers a nuanced assessment of the energy cost relief measures adopted by the Federal Government . "Short-term relief measures, such as the temporary reduction in energy tax, provide immediate relief but do not solve structural problems. What we need are permanently lower energy costs through a reduction in electricity tax."
Especially in the context of the politically desired electrification of heating and transportation, lowering the electricity tax is the right lever. "A cheaper energy source like electricity would automatically steer many markets in the right direction," said Ehlert. Instead, fossil fuels are now being given tax breaks – that sends the wrong signal for the transformation. For more growth, the Chamber expects a "sustainable overall concept for pensions, health insurance, social spending, and taxes."
The weak overall economic development, a lack of economic stimulus, geopolitical tensions, and high levels of uncertainty among businesses and consumers are currently having a major impact on the skilled trades sector . "Economics is largely about psychology," says President Ehlert. "If trust is lacking, orders won't come in."
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The business climate index in the Düsseldorf Chamber of Skilled Crafts district currently stands at 105 points. Anything above the neutral 100-point mark is considered positive, anything below negative. "This isn't dramatically bad, but it's far from the levels of previous springs," reports Ehlert. A good third of businesses (34 percent) rate the current situation as "good," while 22 percent rate it as "poor." However, this stability is deceptive: "Growth is hardly happening anymore," Ehlert emphasizes.
The Chamber presented its survey in the workshop of the metal construction company Hermann and Josef Först ( Metallbau Först ). This long-established family business, located in a courtyard in the state capital, is exemplary of many craft businesses: founded in 1899, it has grown over generations, evolving from a classic locksmith's shop into an expert in glass construction, facade and building design with 25 employees.
The company's largest current project is the construction of the new U81 subway line , which will connect the city to the airport. However, they also gladly accept smaller commissions, such as the creation of an artist-designed swing for the "Playground" children's exhibition at the K20 Museum . "We need to diversify," says Hermann Josef Först.
Throughout its 127-year history, Metallbau Först has consistently adapted to the challenges of the times. Currently, in addition to the shortage of skilled workers , cost pressures on materials, energy, and delivery costs are a major concern for Hermann Josef Först and his cousin Christian Först , the personally liable partners. For example, the company has a fleet of ten diesel vehicles. "A suitable electric transporter simply wasn't available on the market until now."
Another challenge for the company is the high-priced residential development that is encroaching ever closer to the factory premises – leading to corresponding conflicts. "But we're holding our ground," laughs Hermann Josef Först. The central location with good access to the motorway network is unbeatable – once the ongoing inner-city construction projects are finally finished. And with his daughter Silke Först and her husband Frank Först, the fourth generation is already waiting in the wings.
For the Chamber of Skilled Crafts, ensuring that businesses like Först Metal Construction can remain in the city – and that new ones can be established – is a key priority. "If such companies are lost, we lose economic strength, municipal tax revenue, apprenticeships and jobs, and therefore prosperity," warns Chamber President Andreas Ehlert. The Chamber of Skilled Crafts has therefore been negotiating with the city of Düsseldorf for years to secure commercial space. This issue is now enshrined in a "Master Plan for Skilled Crafts."
At the same time , energy, material, and logistics costs are rising sharply. In a special survey conducted by the Chamber of Commerce, 41 percent of businesses stated that increased fuel prices are having a "strong or very strong impact" on their operating costs. Only five percent were able to pass these costs on to their customers in full, 25 percent partially, and 70 percent are taking a wait-and-see approach, initially absorbing the rising costs into their profit margins.
The geopolitical situation is also impacting the building materials sector . Bitumen (for example, for roofers), plastics, and other petroleum-based products are becoming more expensive, and transport costs are rising, reports Ehlert. Many dealers are now only quoting daily prices.
Entrepreneur Hermann Josef Först explains how this works in practice. The temporary tax reduction of 17 cents per liter on gasoline and diesel for two months saves the average car user around 30 euros. For a company with ten vehicles, this amounts to approximately 300 euros over two months. On the other hand, this would result in additional costs of around 7.300 euros per year for the company's vehicle fleet.
Added to this are drastically increased logistics and service surcharges from suppliers. Since 2024, many retailers have been charging flat surcharges per delivery – regardless of the value of the goods. Initially, it was five euros per delivery, but now it's 75 to 90 euros, and in one case involving glass, even 135 euros per delivery. "We're looking at an additional burden of around 40.000 euros per year – just from these service surcharges."
The current situation in the skilled trades varies accordingly: the construction and finishing trades are still in the best position by comparison. In cities like Düsseldorf, the sector is benefiting from maintenance measures and energy-efficient renovations. Nevertheless, the boom of recent years is over; the number of building permits and the hope for renewed growth have been hampered by wars and uncertainty. The multi-billion-euro special fund for infrastructure has so far had little impact on the skilled trades.
The food trade (bakers, confectioners, and butchers) is struggling with high raw material and energy costs while simultaneously having little room for price increases. "The price of a bread roll can't just keep rising indefinitely," says Ehlert. Otherwise, customers will go to the supermarket.
Trades serving commercial needs, including metalworkers, are closely tied to industry. Here, the business climate, at 97 points, is below the already subdued average for the entire skilled trades sector. The average order backlog in this sector has fallen from 9,8 to 7,4 weeks within six months. "With just under eight weeks, it's already difficult to secure employment," says Ehlert.
The automotive industry is clearly feeling the effects of rising living costs, with households cutting back on expenses. Maintenance is being postponed and repairs delayed.
While the business climate index for larger companies with over 50 employees rose from 105 to 119 points, it fell significantly for small businesses. For the self-employed, it dropped from 111 to 101 points.
This is reflected in the revenue figures: only the largest companies are still slightly positive in terms of revenue; all others are experiencing revenue declines. Businesses with fewer than 20 employees are particularly affected – and these make up around 90 percent of all craft businesses.
The Düsseldorf Chamber of Skilled Crafts reports a mixed picture of the labor market. Ehlert stated that 29 percent of businesses would still hire skilled workers "if they could find any." Last autumn, this figure was 36 percent, and the spring before that, it was over 40 percent. The demand is therefore still there, but decreasing. Overall, employment in the skilled trades is declining slightly.
Approximately one in five companies (20 percent) reduced staff last year. While there haven't been any large-scale layoffs, the chamber emphasizes that the decline is continuous. The age structure plays a role: many older employees are retiring without sufficient replacements.
For craft businesses like Metallbau Först, training is part of the company's self-image. "They provide people with bread and work, they train apprentices, they ensure that things continue in this city," Ehlert praises the host company – and adds that many other entrepreneurs might have long since withdrawn in the face of the burdens and sold their property for a profit.
The federal government's announced tax- and contribution-free €1.000 bonus for employees , to be paid by employers, is generating further discussion within the industry. "For us, this isn't a relief, but a burden," say the business owners. They argue that it's fundamentally a wage issue that belongs in collective bargaining between employers and unions – not in the political arena. "The government can't simply force us, through a headline announcement, to add €1.000 per person," says Först. For 25 employees, that would amount to an additional burden of €25.000.
Added to this is the lack of clarity regarding the details. "We asked our tax advisor how this is supposed to be handled. There's no answer," says Först. Ehlert also criticizes the measure: "This is a relief at the expense of third parties – namely the companies. Many businesses are themselves on the brink and don't have the financial flexibility to pay such a bonus across the board." The idea of providing tax relief for overtime and night work bonuses is receiving significantly more support. "That would be something both sides would benefit from," says Först. His employees frequently work irregular and sometimes night shifts, for example at airports.
Most craft businesses are partnerships; for them, income tax is the decisive business tax. Discussions about tax increases would directly impact the investment power of the owners, according to the chamber.
The current social security contribution burden of over 40 percent of gross wages is a core problem for both sides – employers and employees. President Ehlert generally welcomes the fact that current healthcare reform proposals address structural issues, but criticizes two points: the extraordinary increase of the contribution assessment ceiling in statutory health insurance by an additional 300 euros per month, which would place an even greater burden on key workers such as employed master craftsmen; and the financing of non-insurance-related benefits, such as health insurance for recipients of basic income support, exclusively from contributions by those with statutory insurance.
After the widely announced "autumn of reforms" failed to materialize, the middle class now urgently needs " a spring of reforms ".
Andreas Ehlert remains president – Özlem Yarar and Sandra Gronemeier are new vice presidents. One day before the publication of the economic forecast, Andreas Ehlert was re-elected president of the Düsseldorf Chamber of Skilled Crafts. Özlem Yarar and Sandra Gronemeier are the new vice presidents – marking the first time two women have held the position. Read more here.
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