Groz-Beckert is planning short-time work from 2024 - financial expert analyzes the reasons and effects

Groz-Beckert is planning short-time work from 2024 - financial expert analyzes the reasons and effects

According to a report by www.zak.de, the Groz-Beckert company plans to go into short-time work on January 1, 2024. Working hours are to be reduced by 20 percent, although needle production will initially be excluded in order to accommodate the move to the new production building.

According to the company, the reasons for this step lie in the cost situation, which needs to be adjusted to the market situation after more than a year of falling sales. The economic upswing after the corona crisis lost momentum at the end of 2022 and the economy weakened further over the course of 2023. The strong inflation had a negative impact on private consumption and the geopolitical climate and rising interest rates had also depressed companies' willingness to invest. This reticence is also reflected in the sales of the Groz-Beckert group of companies, particularly in the areas of textile tools and engineered textiles.

The market situation is being continuously analyzed and evaluated, and the company currently assumes that short-time work will be maintained up to and including April. Short-time work is scheduled to begin with a week of closure in the first week of next year.

As a financial expert, we can deduce from this information that Groz-Beckert's short-time work is due to a tense economic situation, which is influenced by the consequences of the corona crisis, inflation and the geopolitical climate. This action could also have an impact on the market by affecting investors' and investors' confidence in the company's economic stability. The reduced working hours could also further impact production and sales. It remains to be seen how further developments will affect the financial industry.