29.02.24
OneQrew Readies for Further Expansion
For the third consecutive year, OneQrew is proud to present its annual Price Index for Skilled Crafts, offering a comprehensive comparison of hourly rates across various skilled trades. The latest findings for the second half of 2023 show a significant milestone: the average cost for a journeyman’s hour has exceeded 60 euros, reaching 61 euros, while master craftsmen’s rates have climbed to an average of 69 euros.
This year’s survey underscores a notable trend within the German skilled trades sector, marking an increase from the beginning of 2023. Master craftsmen’s hourly rates have risen by eight percent, from 64 to 69 euros, and journeyman’s rates have witnessed a five percent rise, from 58 to 61 euros. These insights stem from the Price Index for Skilled Crafts, compiled by OneQrew through a thorough survey of 534 German and, for the first time, 80 Austrian trade businesses, leveraging data from its expansive customer network to draw these comparisons.
The inclusion of Austrian companies this year broadens the scope, revealing average hourly rates of 80 euros for master craftsmen and 68 euros for journeymen in Austria, highlighting regional variances in the trade sector.
Price Adjustments Across Half of German Trade Companies
The survey period revealed that 51% of the businesses increased their hourly rates. Conversely, rates remained unchanged for 48% of the respondents, and a mere 1% reported a decrease. This shift indicates a slight reduction in the number of companies raising their rates compared to the previous survey, where 71% had increased their prices.
Price adjustment trends vary significantly by trade, with 69% of companies in the painting and plastering sector and 64% of metal/plant/steel construction sectors reporting increases. Similarly, 59% of roofers and carpenters have raised their prices.
On the other hand, only 48% of joiners/carpenters increased their prices and only 47% in the HVAC sector. In electrical engineering, 44% of the companies surveyed raised their hourly rates. Among the other trades in the survey, the proportion of price increases in hourly rates was 45%. These numbers showcase the diverse economic pressures across different trades.
Gradual Convergence in Trade-Specific Hourly Rates
The latest findings reveal a subtle yet noteworthy trend toward uniformity in trade-specific hourly rates. Roofers and carpenters continue to lead with the highest hourly compensation, with an average combined rate for master craftsmen and journeymen at 68 euros. Close behind, the HVAC sector, along with other trades including metal/plant/steel construction, aligns with the overall average rate of 65 euros. Electrical engineering presents slightly lower rates at 64 euros, followed by carpenters/joiners at 63 euros. Notably, painters and plasterers offer the most economical rates, standing at 62 euros.
This year’s data shows the gap between the highest and lowest charging trades has narrowed to six euros, a significant reduction from the ten-euro disparity observed in the previous survey. Such a trend might be attributed to the staggered increases in industry minimum wages across various trades. This observation raises intriguing questions about the future: Is this trend toward pricing equilibrium a transient phase, or are we witnessing the onset of a long-term shift towards more uniform pricing across the trades? The evolving landscape of trade-specific wages and charges warrants close monitoring in the coming periods.
Regional Price Variations Persist
In terms of regional differences, price distribution in Germany in the second half of 2023 remained the same as in previous surveys. The costs for tradesperson hours are relatively high in metropolitan areas and the economically strong old federal states. Hamburg remains the most expensive federal state for skilled trade services, underscoring the impact of geographic and economic factors on pricing. This year, the city-state reported the highest rates, with a master craftsman’s hour at 75 euros and a journeyman’s at 67 euros, contrasting sharply with lower rates of 53 and 46 euros, respectively observed in Saxony. In the east of the republic, hourly rates for tradespeople are on average 14 percent lower than those of their colleagues in the western states.
“The scarcity of skilled labor in the trades sector is pushing prices upward. We stand by the principle that exceptional craftsmanship deserves fair compensation. While our skilled workforce benefits from higher wages, we acknowledge that rising costs place a significant burden on our clients. I believe the solution lies in enhancing productivity. By completing tasks more efficiently—using fewer, yet more skilled hours—clients’ costs remain stable, and craftworkers gain the capacity to serve more orders promptly. This approach is essential to addressing the soaring demand,” Hartmann explains. “Embracing modern technology is fundamental to achieving this efficiency. Reducing non-productive time through innovative tools for quoting, invoicing, and smart applications, as opposed to traditional paperwork, is key to boosting productivity both in the office and on the job site.”
Survey Methodology
The Price Index for Skilled Crafts’ findings are based on a survey of 534 German trades businesses and 80 businesses from Austria conducted between November 27 and December 13, 2023. The survey encompassed responses from a diverse range of trades, including plumbing, heating and air conditioning, electrical engineering, roofing, carpentry, joinery/carpentry, metal/plant/steel construction, and painting/plastering/plastering trades. German federal states from which fewer than ten companies took part in the survey were not included in the country-specific evaluations. Trades from which fewer than ten companies took part in the survey were also not included individually in trade-specific evaluations or were summarized as “Other”. This rigorous methodology ensures a comprehensive overview of the current state of hourly rates within the skilled trades sector in Germany and Austria, providing valuable insights for businesses, policymakers, and consumers alike.
OneQrew-Price-Index-for-Skilled-Crafts-2024.pdf
