Pilz in Ostfildern: Fight for jobs despite a 21% decline in sales

Pilz in Ostfildern: Fight for jobs despite a 21% decline in sales

In a tense economic climate, the Pilz company in Ostfildern is struggling to retain its permanent workforce. The management, led by Susanne Kunschert and her brother Thomas Pilz, recognizes the challenges the company faces. The company's revenue fell an alarming 21 percent in 2024, increasing concerns about the future. Kunschert expressed concern about the negative numbers and emphasized the need to actively support all employees. Pilz specializes in safe automation and has made a name for itself in the industry.

However, the problems are not limited to fungus alone. EY reports that sales of German industrial companies fell by 4.2% from January to September 2024 compared to the previous year. The electrical engineering sector is particularly hard hit, with a decline of 9%. The automotive sector and mechanical engineering also recorded significant declines of 4.4% and 4.1%, respectively. This marks the fifth consecutive quarter of negative sales development for German industry, resulting in a 0.9% decline in employment in the third quarter.

Cross-industry challenge

The economic problems are exacerbated by geopolitical factors. The war in Ukraine and possible longer-term energy shortages are causing uncertainties regarding the supply of raw materials and energy. The Federal Agency for Civic Education highlights that Germany has been considered the “sick man of Europe” for five years. Before the coronavirus pandemic in 2020, industrial production was already declining, and the current situation is further exacerbated by a stagnating national economy.

In total, around 50,000 jobs were cut in German industry in one year, and since 2019 the loss has increased to 152,400. The automotive industry plays a central role with 770,000 employees and has recently suffered a decline in sales of 25 billion euros. The need to improve the framework conditions for industry is becoming increasingly urgent. Jan Brorhilker from EY describes the industry as being in a deep crisis and warns of stagnating sales in the coming year.

Outlook for the future

German industry, which contributes 24% to overall economic performance, is faced with the challenge of setting the course for the future. Given the current situation, an increase in industrial sales of 2% is required in order to remain at the previous year's level in real terms. However, this is actually 4% lower. Last but not least, the discussion about necessary adaptation measures to avoid deindustrialization is becoming increasingly louder.

The challenges facing Pilz are part of a larger picture affecting German industry. The coming months will be crucial in finding out whether companies like Pilz can retain their workforce and emerge from this crisis stronger.