Economic development in the region remains sluggish, with a protracted pace of recovery
The Osnabrück-Emsland-Grafschaft Bentheim region, known for its vibrant industries and services, is currently navigating a mix of economic challenges and prospects.
The information and communication sector has seen a positive development with a rate of 0.55 percent, indicating growth in the digital economy. However, other sectors are facing difficulties. The default rate in the hospitality industry has risen to 2.75 percent, affecting over 4,000 employees. Similarly, the construction sector has witnessed a rise in defaults, with the rate increasing from 1.68 percent to 2.22 percent. Every fifth default in the region affects the construction sector.
Among the companies classified as defaults, small companies with up to four employees are most affected. Retail has a slightly more relaxed situation with a reduced default rate of 1.23 percent, but the sector continues to struggle with weak demand and higher prices at the checkout.
The economic climate index of the region is currently at 83 points, up from 77 points in the previous quarter but still below the long-term average of 102 points. A net 17 percent of companies are dissatisfied with the current business situation, down from -18 percent previously. Expectations for the coming months remain at a low level, with a net 17 percent expecting the economy to worsen.
Despite these challenges, the region is taking proactive steps to address these issues. In manufacturing, there is a focus on technological modernization. The region is actively supporting small and medium-sized enterprises (SMEs), particularly in the manufacturing and craft sectors, by promoting new technologies such as robotics and exoskeletons to improve productivity and working conditions.
The retail sector is undergoing digital transformation, aligning with the broader Lower Saxony initiative “Niedersachsen digitaler machen!” aiming to leverage digital potential in the economy, society, and administration. This digital push is crucial for retail and service sectors to maintain competitiveness and adapt to modern consumer demands.
In the service sector, there is a focus on addressing the skilled labor shortage and adapting to new digital tools. Labor recruitment programs and digital potential initiatives are being implemented to tackle these challenges.
The transport sector remains subdued, partly due to increased truck tolls.
The region's manufacturing sector boasts a strong industrial base, with companies like Goldbeck using lean production and construction concepts that highlight innovation and large-scale industrial capacity.
In conclusion, the Osnabrück-Emsland-Grafschaft Bentheim region is leveraging innovation, digitalization, and skilled worker recruitment to address economic challenges, while balancing sustainability concerns that impact infrastructure relevant for industrial and retail logistics.
- The manufacturing industry is undergoing technological modernization, focusing on adopting new technologies like robotics and exoskeletons to improve productivity and working conditions.
- While the retail sector continues to struggle with weak demand and higher prices at the checkout, it is aligning with a broader Lower Saxony initiative to leverage digital potential in the economy, society, and administration, in a bid to maintain competitiveness and adapt to modern consumer demands.
- The finance sector could potentially benefit from the growing digital economy in the region, as technological modernization in the manufacturing industry may facilitate increased efficiency and cost savings, which could in turn encourage more investments in the retail and transportation sectors.
