Wildermuth Bau closes after 119 years: 100 employees affected!

Wildermuth Bau closes after 119 years: 100 employees affected!

Wildermuth Bau in Bietigheim-Bissingen, a company with a 119-year history, has announced that it will close its doors forever and lay off all around 100 employees without severance pay. This decision, which is met with great surprise in the industry, was caused by the current economic situation and the associated challenges. The IG BAU union was critical and surprised by this announcement, especially regional manager Andreas Harnack, who cannot understand the closure any further. Stuttgart News reports that the dismissals took place without the involvement of a works council.

The company, which was founded in 1906, has completed numerous construction projects over the decades and has always strived to meet the highest quality standards and offer innovative solutions. Despite these successes, Wildermuth Bau was unable to withstand the challenges of recent years. These include, above all, rising material costs, intense competition and changing market requirements. In a statement, management regrets the decision and emphasizes that it is not related to the employees' performance. Rather, it is the result of external conditions and responsibility has always been borne towards the employees. Support during the difficult time is planned, according to the company. Bietigheim newspaper adds that the management is proud of the successes of the last 100 years.

A look at the industry

The closure of Wildermuth Bau is another worrying sign in an already struggling industry. Current reports show that the German construction industry is struggling with falling sales and increasing bankruptcies. Between January and October 2024, industry bankruptcies increased by 17.5% compared to the previous year, and an increase of around 22% is expected for the full year. The German economy points out that small construction companies in particular, 80-85% of which have fewer than 20 employees, suffer from the increased credit risk.

The challenges are diverse: long planning times, bureaucracy and a significant shortage of skilled workers place additional strain on the industry. While public construction investments rose by 3% last year, they have stagnated this year due to tight budgets. The political demand for faster building permits to stimulate the market is becoming increasingly louder. Forecasts suggest that the number of new completions could fall below 200,000 apartments, which will further exacerbate the situation for companies like Wildermuth Bau.

In view of these circumstances, the closure of Wildermuth Bau in Bietigheim-Bissingen is not only a local event, but also a signal event for the entire industry, which finds itself in a deep valley of tears.