Frankfurt am Main – Positive economic times have returned to the machinery and plant engineering sector, even though supply chain issues persist. The order situation is currently very good, and the outlook for the next twelve months is also very positive. However, a lack of apprenticeship positions, untapped employee potential, and insufficient capital expenditures—which do not match the level of economic growth—are jeopardizing future prospects. Production relocations and cost-optimization measures also remain on the agenda. In doing so, companies are jeopardizing the future of the industry in Germany as an industrial hub. This is the finding of the “Trendmelder 2023,” an industry-wide works council survey conducted by IG Metall.
“The mechanical and plant engineering sector is once again in good economic shape. However, this growth is placing enormous work pressure on employees, without companies taking countermeasures through personnel policies,” says Wolfgang Lemb, executive board member of IG Metall, summarizing the key findings of the survey. An appropriate personnel policy is finally needed. “In light of the demand for skilled workers, the machinery and plant engineering sector must train more apprentices and hire them into permanent positions.” This must be combined with qualified workforce planning that enables continuing education for all, as well as greater investment in Germany as an industrial hub, emphasizes Lemb, who, among other responsibilities, oversees sector-specific work in the machinery and plant engineering industry.
New orders are stabilizing at a high level
In the survey, 67 percent of the works council members surveyed rated the current order situation as very good or somewhat good. Additionally, 37 percent expect order intake to continue rising over the next twelve months, while 39 percent anticipate that order intake will remain stable. Twelve percent expect order intake to decline. Due to ongoing problems with the supply of materials, only 46 percent rate profits as very good or somewhat good. 28 percent expect profits to increase over the next twelve months, 42 percent expect them to remain stable, and 14 percent expect them to decline. For employees, the uncertain supply chain situation—combined with the demand for skilled workers—means that 73 percent of companies are requiring overtime, resulting in a high workload.
Demand for Skilled Workers Continues to Rise
44 percent of respondents expect their permanent workforce to grow over the next twelve months. Among temporary employees, 9 percent anticipate an increase, and among temporary agency workers, 17 percent expect an increase. The number of apprentices remains at a low level. Although 75 percent report difficulty finding skilled workers, only 23 percent are offering more apprenticeship positions. Qualified workforce planning is still lacking in 81 percent of companies. At the same time, companies are failing to tap into existing employment potential. Only one in ten companies provides the necessary conditions for women to learn a skilled trade. And only 14 percent of companies offer apprenticeships to applicants with little or no formal education. “Companies are exacerbating their shortage of skilled workers through their own poor decisions,” warns Wolfgang Lemb. At the same time, the industry—where women make up less than 20 percent of the workforce—must become more attractive to women. More female role models are also needed in management. For example, 90 percent of those surveyed report that the proportion of women in management ranges from 0 to 25 percent.
No Catch-Up in Investment
The expected trend in investments and investments in research and development has deteriorated again compared to 2022. 18 percent of companies plan to increase their investments. At 64 percent of companies, investment levels will remain unchanged, with only 37 percent of respondents describing the investment situation as very good or somewhat good. Wolfgang Lemb: “To ensure stable future prospects for companies based in Germany, more investment is urgently needed.”
Policy Must Provide Incentives
IG Metall is convinced that, to secure jobs in Germany’s largest employer sector, policymakers must also provide stronger support for Germany as an industrial hub and for its works councils. The service sector—which is central to the industry—is threatened by the skilled-labor shortage and political conditions. Fifty-nine percent of respondents believe that improved legal regulations could at least partially alleviate the demand for skilled workers in the service sector. Wolfgang Lemb: “We need less bureaucracy regarding travel expenses and the taxation of work performed away from the home office. This discourages employees from working in the service sector.”
The Trend Report is an annual survey of works council members in the machinery and plant engineering sector conducted by IG Metall every spring since 2017. It captures their perspective on the industry. This year, it was expanded to include questions on the skilled labor shortage. More than 510 works council members participated in the latest survey, which took place from January 16 to February 10, 2023.
Trendmelder 2023: The Future Is at Risk Due to a Lack of Training
Further information and press photos of Wolfgang Lemb
