Ulm in the crisis: Economy weakens - companies worry about the future!

Ulm in the crisis: Economy weakens - companies worry about the future!

In the Ulm Region, there is a worrying trend: The Chamber of Commerce and Industry (IHK) Ulm confirms that the economic situation is serious. After years of the upswing, the IHK reports for the first time since the Corona crisis that more companies are well there, and this speaks for a general weakness of economic performance. Economic Minister Robert Habeck (Greens) presented a forecast on Wednesday in Berlin, which predicts a decline in economic output by 0.2 percent this year, which indicates a possible second recess year.

Small companies in particular suffer from the pressure of falling sales. Hendrik Mächler, the owner of the gift shop "Good from here" in downtown Ulm, reports of a reduction in sales of 4.5 percent in inpatient business. Since gift purchasing is generally unnecessary for third parties in the industry, he still sees its customers affected by economy: "People save on themselves first," explains Mächler.

are trading and industry to borders?

The displeasure of the dealers is understandable. Around 85 percent of his sales are eliminated, and that makes him optimistic compared to other retailers. Many of his colleagues have drastic declines, and the pressure on retail is clearly noticeable. The corporate customer business runs better for Mächler than in the previous year, but according to the IHK Ulm, the general mood in retail is shown.

The experiences of Julian Utz, a representative of the metal processing industry, are similar. He speaks of a decline in sales of one percent compared to last year. Problems such as the increasing material costs and the persistent interest turnaround are increasing to the industry. IHK President Jan Stefan Roell mentions the negative development of domestic demand, which contributes to the reduction of export. His company also had to put high investments in the implementation of the new sustainability reporting, which creates additional loads.

difficult times for companies in Ulm

The IHK Ulm points out that 50 percent of the companies surveyed will complain about sales this autumn. These are alarming numbers that indicate that the economic situation could further tighten. Many companies expect an additional deterioration in the situation. It is particularly striking that 36 percent of companies even plan to reduce their workforce. This news is in contrast to the efforts of companies to keep all available employees in recent years.

The IHK names the shortage of skilled workers as one of the greatest challenges. By 2035, around 23,600 specialists could be missing in the Ulm region, which stands in the way of economic growth. "Uncertainty is the worst for the economy," explains Roell, adding that a fifth of companies prefer investments abroad, which brings further negative impulses for the domestic economy.

The government has drastically corrected its economic forecasts downwards and does not provide any improvement for the coming months. The decline in economic output could turn out to be a profound challenge that will heavily burden both trade and industry. The IHK Ulm warns to the quick solution of the existing problems to ensure sustainable economic development in the region.

For further information on the current developments in the Ulm economy, the comprehensive reporting on www.swr.de view.