The present situation in German Shopfitting (April 2007)

 

Increasing turnover in 2006, slight reduction in the beginning of 2007.

 

Incoming orders has stabilized on a satisfactory level, so the positive trend is expected to last.

 

The German Shopfitters are accordingly again happy, after a bad  period previous to 2006.

 

The Shopfitting Industry profits from a stop in the previous retail consumption decrease, and now again expect the positive trends in this area to continue.

 

The VAT increase from 16-19% in the beginning of the year has been surprisingly easily implemented, and apparently had no serious effect on the private consumption, why the limited reduction in the German Shopfitting Industry in the beginning of the year, will probably be neutralized during the rest of  2007. A survey in the Retail  Industry indicates renewed investment expectations in stores.

 

The Export has reached a level of 20-30% of the total German Shopfitting turn-over, and is expected to grow further with the expansion of German companies in East Europe.

 

A negative influence is still caused by the high cost of raw material (particularly MDF- and chipboard, and Steel) due to the explosive increase in the World market demand. Partly this is fought by attempting to increase the Service-content of the supplies (Planning and marketing assistance for the clients, project management, etc.), thus reducing the raw material percentage of the total price.

 

Conclusion:

The situation of the German Shopfitting Industry is once again very good. It is worth noticing, how the challenges “High Raw Material Cost” and “Expansion pressure towards East Europe” are met.

 

Unemployment in Germany, February 2007:

(Re. ILO Standard, which is slightly different from German Standard)

 

Unemployment rate: 7,5% (February 2006: 9,4%)

No. of unemployed: 3,15 mio (February 2006: 3,99)

High growth rate in work hours and hired help. 

In technical and science industries there is a great lack of manpower.

Only slow reduction in long-term unemployment.

 

Gez. A. Krause/18/04/2007

Translated to the best of my ability,

Preben Bailey, ISO Secretariat

 

Answering questions after the presentation, Carsten Schemberg added that German exports of  shopfitting are estimated between 20-30% of the home market value.