Forchheim: trend assessment by the IHK Committee – companies face an uncertain future

A few days ago, IHK published the results of the current IHK District Economic Survey. Evaluations are now also available at the IHK committee level. It appears that IHK companies from the city and region of Forchheim seem to be more affected by the current challenging environment. Unlike other sub-zones in the room area, the current business situation is slightly negatively evaluated at equilibrium. As reported by the Chamber of Industry and Commerce of the Upper Franconia region, expectations for future business are also declining and sliding deeper into negative territory. Forchheim’s Economic Climate Index dropped by two points and is now at 93. “The current business situation at our companies remains generally stable. On the other hand, many companies are concerned about the coming months. Michael Wasner, who is also the chair of the Forchheim IHK committee.

The current business situation in the Forchheim Economic Zone is almost generally balanced. 22 percent of companies surveyed say their business is doing well, and 25 percent are bad. 53 percent of those surveyed rated the operational situation as satisfactory. The main reason for this somewhat worse rating compared to the New Year’s survey is the decrease in sales in the domestic market. More companies surveyed report weak sales development than those companies that are able to spread growth.

However, in foreign markets, the development of the turnover rate of the surveyed companies remains balanced. “Above all, consumers’ reluctance to buy slows down domestic business. However, the consequences of the Ukraine war and the Corona pandemic are also causing uncertainty in international business. In light of the challenges, the assessment of the situation is surprisingly robust,” explains Dr. . Waasner.

Cautious future prospects
Merchants and businesses are currently experiencing a variety of difficulties. In addition to the effects of war, rising energy costs, and restrictions imposed by the pandemic, a growing shortage of skilled labor remains a major problem. Added to this are inflationary tendencies and rising interest rates, which make investments more expensive. Therefore, the view on the next twelve months is still somewhat cautious. Only 22 percent of companies surveyed expect the business situation to improve, while 33 percent assume it will deteriorate. The remaining 45 percent do not expect any major changes.

Thus the balance remains clear in the negative territory and roughly corresponds to the result of the New Year’s survey. “Many factors cannot be affected internally. No one knows what the next few weeks will bring. This makes planning difficult and ensures that we act with greater caution. Everyone involved in economic life, businesses and consumers hope that general conditions will quickly stabilize.” , warns the head of the IHK.

Investments should go down
This is also shown by the IHK survey: not only the outlook for business development in the city and region of Forchheim is very poor, but also the planning for investments and staff development. In the next few months, more entrepreneurs expect investments to decrease than to increase. And when it comes to hiring planning, more companies expect layoffs than new hires. Dr. says. Waasner.

In general, the IHK Economic Survey gives a different picture of the economic situation in the sub-regions. “In the current survey, the indicators in the eight IHK committees cover a wide range and range from 86 to 120 points. This shows how uneven the current challenges affecting the local economy are,” said IHK Economics Officer Malte Tiedemann.

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