Thurgau industry faces challenges while domestic sectors show resilience

Thurgau's economic landscape is currently characterized by a contrast between the performance of its export industry and the domestic sectors.

Export Industry Challenges

The export industry is facing challenges due to a sluggish German economy. Weak incoming orders have led to lower turnover and profits for over a third of surveyed companies. One in four industrial companies reported unsatisfactory business performance, with a third noting a decline in capacity utilization.

Thriving Domestic Sectors

On the other hand, domestic sectors such as construction, retail, and services are faring better. Over 90 percent of construction companies reported a satisfactory to good business situation. The gastronomy and tourism industries have faced setbacks due to unstable weather conditions.

Optimism for the Future

A survey conducted by Thurgauer Kantonalbank (TKB) reveals that half of the businesses reported a satisfactory financial year in 2024, with optimism extending into 2025. TKB anticipates that the heterogeneous development across sectors will continue into 2025.

Skilled Worker Shortage

The ongoing shortage of skilled workers is a significant concern for Thurgau's businesses. The construction industry is facing acute labor shortages. Many companies report difficulties in filling apprenticeship positions due to inadequate school performance among applicants and a lack of applications altogether. Collaboration between educational institutions and businesses is needed to address this issue.

Long-Term Growth and Stability

The resilience of domestic sectors and the proactive approach to vocational training may play a critical role in fostering long-term growth and stability in Thurgau's economy.

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