According to a study by management consultancy Horváth, the German construction industry is optimistic about a recovery in 2025. Interviews with 50 top managers of major construction firms reveal that, after a three-year decline in sales, there is now a positive outlook, with an expected average increase of 3.8 percentage points in 2025. The cost pressures that dominated previous years are easing, and companies are shifting their focus from liquidity management to optimising cost and income structures.
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For 2024, companies anticipate a slight sales decline of 0.1 percentage points, attributed to market uncertainties affecting investors and private builders. However, with stabilised key interest rates and stable construction costs, the market is showing signs of recovery. Two-thirds of surveyed companies expect positive sales growth for 2025. Despite this optimism, controlling costs remains crucial due to high material and labour expenses.
The shortage of skilled workers is a significant concern, with 53% of companies citing it as a major problem. Additionally, rising personnel costs are expected to increase construction expenses. The industry is also focusing on sustainable products and circular economy practices, driven by growing demand and lagging ESG implementation.
The adoption of AI is still in its early stages, with many companies only beginning to explore its potential. The study highlights a push towards digital transformation, alongside necessary organizational restructuring, as a priority for the industry.
Source: www.moebelfertigung.com