Companies in Leipzig and Halle in a difficult situation

Many companies in the Halle and Leipzig region currently find themselves in a worse situation than a year ago. This is due to falling demand, a noticeable increase in costs and difficult economic policy conditions, according to the Chambers of Crafts, Industry and Commerce in Leipzig and Halle.

"Companies have revised their business expectations downwards across the board," said the President of the Halle Chamber of Crafts, Thomas Keindorf, at the presentation of the report for spring 2024. Weak demand at home and abroad, but also structural problems such as a shortage of skilled workers, rising labor costs and high energy and raw material prices continue to be a major concern for companies.

"Although global trade is on an upward trend overall, Central German industry has little to do with this," added the President of the Leipzig Chamber of Industry and Commerce, Kristian Kirpal. The high energy prices in particular were increasingly jeopardizing the competitiveness of local products.

The chambers' recommendation was that the situation for companies would improve if they had a secure and affordable energy supply, for example. The timing of the phase-out of base-load coal-fired power generation in 2038 should therefore not be politically questioned.

In the next few years, many companies will also need to clarify the issue of succession for business owners, they said. "However, entrepreneurship lacks the social recognition that makes it attractive," said Keindorf.

For their report, the chambers surveyed a representative sample of companies in the greater Leipzig-Halle-Dessau area. Around 1800 companies from various sectors took part. The data is weighted and analyzed. According to their own information, the chambers represent more than 146,000 companies in the region.