Bavaria’s most important industrial sector continues to feel the impact of ongoing economic weakness. According to the employers’ associations bayme and vbm, the metal and electrical industry cut a total of 18,000 jobs in the first six months of 2025. At the end of June, 846,000 people were still employed in the sector – representing a decline of one percent compared with the same period last year.
The industry includes not only automobile manufacturers and their suppliers, who are suffering particularly from challenging conditions in China, but also sectors that are holding up comparatively well despite the crisis. These include the aerospace industry and the Siemens Group with its various subsidiaries.
Decline in Production in the Second Quarter
In the second quarter, production in the metal and electrical industry fell by 1.6 percent compared to the first three months of the year. Compared with the same period last year, the decline was even more pronounced at 3.5 percent. Capacity utilization reached only 77.7 percent, whereas normally an average of around 85 percent is achieved.
“There are indeed signs that the economic downturn may have reached its lowest point, but a clear upward trend is still not visible,” explained Bertram Brossardt, Chief Executive of the two associations.
Incoming Orders as a Positive Signal
A welcome exception lies in new orders: order intake was 2.8 percent higher than in the previous year. Despite this positive development, the Ifo Institute warned in its latest Employment Barometer that the industry is likely to continue reducing its workforce, not only in Bavaria but nationwide.
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