The new year brings with it a number of challenges that Czech industrial companies will have to take into account. In addition to geopolitical changes, these include developments in the labor market, decarbonization, and technological progress. So what exactly lies ahead? We bring you an overview of the most frequently discussed topics.
1) Slowing economic growth
The first major challenge for this year is undoubtedly the overall economic situation in the Czech Republic. It is true that according to the latest data from the Ministry of Finance, the Czech Republic is expected to see gradual GDP growth (by 2.2%) next year as well, but forecasts also point to a slight slowdown in this trend. At the same time, analysts are already warning of a certain stagnation in Czech industrial production.
Several factors are to blame – the bleak situation on the German market, which is closely linked to ours, as well as various obstacles to exports that negatively affect the trade balance. American tariffs are causing Czech companies particular concern. It also remains to be seen how any measures taken by the new government will affect the overall situation.
2) Geopolitical risks and foreign competition
In addition to more difficult export conditions, Czech industry must also take into account developments abroad. And it is not just about American tariffs and the poor condition of the German economy. Although we will stay with Germany for a moment. At the end of the year, the German government decided to introduce massive energy subsidies for industry. And this was precisely in an effort to support the struggling economy. Some Czech industrial companies, which do not enjoy similar advantages, now fear that German competition will “steamroll” them.
At the same time, we can also expect continued competitive pressure from China, which continues to pursue an aggressive export policy. In the USA, on the other hand, analysts are reporting an investment boom and technological development, and there will likely also be more careful maneuvering around tariffs. The situation in Eastern Europe is not calm either. Czech industry continues to be affected by the war in Ukraine and the related pressure to invest in defense.
It is therefore clear that Czech industry must prepare well for foreign competitors. And this includes the help of innovation. Unfortunately, however, the Czech Republic still ranks among the EU countries that are rather lagging behind in the field of innovation. This follows from this year’s NKÚ report. So there is definitely room for improvement.
3) Digitization and AI
An important topic in the coming years will also be technological development, especially the digitization of companies and progress in the field of AI. Although digitalization has been talked about for many years, in reality many Czech companies still have a lot of catching up to do. According to the 2024 Analysis of Czech Industry, prepared by the National Center for Industry 4.0, for example, 60% of Czech companies do not even have a digitalization strategy in place.
Sooner or later, a large proportion of industrial companies that want to keep pace with the competition will therefore have to address investment in smart systems. The state also plans to support the area of digitization, having approved last autumn the Digital Czechia 2026 program plan with a budget of over CZK 21 billion.
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4) Green Deal and EU environmental policy
Industrial companies are facing increasing pressure to transition to clean production and overall decarbonization, which will also affect corporate investments in 2026. This is mainly related to the European Green Deal, which commits EU member states to reducing emissions by 90% by 2040. In the coming years, the expanded ETS 2 emissions trading system is also set to come into force, which may affect, among other things, the price of road transport.
According to a study recently commissioned by the Confederation of Industry of the Czech Republic, the Czech Republic must invest more than CZK 3 trillion in decarbonization and industrial transformation in order to meet the EU targets, which many experts describe as financially unrealistic.
It is therefore clear that the issue of ecology will be one of the topics that many Czech industrial companies will have on the table next year – whatever the final volume of investment may be.
5) Shortage of qualified workers
Another persistent problem that will carry over into 2026 is the shortage of technicians on the labor market. The Czech Republic is among the EU countries with the lowest unemployment rate – according to the latest CZSO data, unemployment here stands at 2.9%. This, together with the aging of the active population, is also having a significant impact on the number of qualified workers in industry.
According to a December survey by the Chamber of Commerce, most companies (51.1%) complain about a shortage of workers, with the construction sector reporting the biggest problems. Among specific professions on the labor market, the greatest shortages are in electrical engineering, mechanical engineering, and assembly workers.
Companies will therefore have to look for ways to attract new applicants, train them quickly, and retain them in the company. Or how to streamline company processes so that existing employees have more time for qualified work. The aforementioned digitalization can also help companies in this effort. Corporate systems such as Lumnio make it possible to speed up the onboarding of new employees and make the work of existing employees more efficient.
6) Administration and new obligations
The year 2026 also brings changes in the administrative and legal areas that will affect companies, for example:
- As of November 2025, the new Cybersecurity Act is already in effect, introducing new rules in the Czech Republic stemming from the European NIS2 directive. This regulation will affect around 6,000 companies, including those in transport, energy, and manufacturing (details are set out in Decree No. 408/2025 Coll.), and the deadline for meeting the first obligations will expire in January 2026.
- As of 1 January 2026, a new obligation for employers came into effect, specifically the so-called Unified Monthly Employer Report. Although it promises to reduce the administrative burden on companies in the future, industrial companies must first get used to the new measure. We therefore recommend reviewing the new rules in good time so that nothing catches you off guard at the start of the year.
We therefore recommend reviewing the new changes in time so that nothing catches you by surprise at the start of the year.
Interested in the topic? Also read how to make administration easier for employees with the help of digitalization.
