A lack of skilled workers is hurting the German footwear industry

13/03/2018
The German footwear industry saw its turnover increase 5.9% to €2.9 billion in 2017, according to figures from the German Shoe and Leather Industry association (HDS/L).

Germany exported more than 280 million pairs of shoes during the period, an increase of 9.8%. The value of these exports was just under €6.2 billion, 25.3% higher than in 2016. This was due to an increase in the average price per pair. In 2016, the average price was €19.31, but last year this value was €22.05, 14.2% higher. 

The most important markets for German footwear in 2017 were France, to which it exported 37.8 million pairs (an increase of 19.6%); Poland, which imported 35.7 million pairs (21% more than in 2016); and the Netherlands, which saw its imports of German footwear increase 13.7% to 26.3 million pairs.

Overall, the European Union was the destination for 84.3% of Germany’s footwear exports. Although this was 2.1% lower than in 2016, Manfred Junkert, managing director of HDS/L, said it demonstrates “the considerable significance of the European internal market” to the German footwear industry.

He also revealed that the latest data shows that the “sneaker hype” of 2016 continued last year with exports of sports shoes with textile uppers increasing 22.2% year on year. Exports of shoes with leather uppers increased 15% compared to 2016. 

Germany’s footwear imports also increased. In 2017, it imported 692 million pairs of shoes, an increase of 3.5% compared to the previous year. Imports from Asian countries, such as China (+3.6%), Vietnam (+11.5%) and Indonesia (+9.3%) also increased. 

Interestingly, there was also an increase in imports from traditional European shoemaking countries: Italy (+5.8%), Portugal (+15.7%), Spain (+11%) and France (+8.5%). Mr Junkert said these figures suggest more shoe production is being brought back to Europe. 

Mr Junkert did sound a note of caution, however, explaining that the lack of skilled workers in the German footwear industry “Is becoming increasingly noticeable”. Although the number of employees in the sector increased 6.7% in 2017 to 14,762, he said a number of companies have said they are finding it difficult to find skilled workers in areas like research and development and IT. They are also struggling to recruit skilled production workers, he revealed.

For his part, Carl-August Seibel, HDS/L chairman, said it is a big challenge to convince Germany’s young people to start their career in the footwear sector, adding that skilled shoe workers are increasingly scarce. 

Mr Junkert concluded that the German shoe industry is “cautiously optimistic” for 2018, but that it will be difficult for it to repeat last year’s strong performance.