Germany's trades sector struggles as Iran crisis disrupts supply chains and costs
Germany’s skilled trades sector is facing ongoing challenges as the Iran crisis continues to disrupt supply chains and costs. Households are now delaying planned home improvements, while material shortages and rising prices add further pressure on the industry. The effects have been widespread, from longer delivery times to job losses across the country. The Iran conflict has hit the trades sector hard, pushing construction costs up by as much as 50%. Rising transport expenses have played a major role in this surge. At the same time, the price of polystyrene insulation has climbed sharply, forcing many consumers to switch to mineral wool—now also in short supply.
Delivery delays have worsened significantly. Materials that once took two weeks to arrive now require up to 16 weeks. Appointments for tradespeople were once booked 14 weeks in advance, but waiting times have since eased slightly to an average of 8.9 weeks. Urban areas, however, still face longer delays compared to rural regions. The financial strain has led to over 60,000 job losses in the sector last year alone. In response, Jörg Dittrich, president of the German Crafts and Trades Association, urged the government to extend the fuel discount beyond its current two-month limit. He warned that without further support, the industry’s struggles could deepen.
With households cutting back on investments and material shortages persisting, the sector remains under significant pressure. The combination of higher costs, extended delivery times, and job losses highlights the ongoing impact of the Iran crisis on Germany’s trades industry. Recovery will depend on stabilising supply chains and easing financial burdens for both businesses and consumers.
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