German construction sector recuperating – but slowly

Revenues were down 2% last year in the German construction sector. While the situation is slowly improving, the 2010 building construction prognosis prepared by OC&C Strategy Consultants assumes nothing better than stabilization for the branch. In contrast to other institutes, who seem to be agreeing on stronger recuperation, OC&C is forecasting an effective market decline of 0.1%. They attribute this to the aftereffects of the global financial and economic crisis, particularly in the non-residential sector, while the residential construction sector can expect to draw increasing profit from stable to mildly increasing demand coupled with an intensified trend toward sustainability, green building and the like.

The consultants are taking a cautiously positive view of the overall market’s medium-term behaviour. They see a minor upswing coming for 2011 and 2012. Overall, OC&C perceives two main challenges for the companies: they must safeguard and expand their market positions in a problematic, competitive market environment, and, while doing so, maintain their own internal profitability.

x

Related articles:

Issue 2009-07 OC&C Strategy Consultants

Building construction in Germany: dismal prospects until 2011

Just last year, Germany’s building construction sector expanded by 2.6 %. For the coming years, however, prospects are a lot dimmer: In their annual construction-sector forecast, the experts at OC&C...

more
Issue 2013-7-8

Restrained growth in German building construction sector

In 2011, Germany‘s building construction sector was in the midst of an upswing in which the business volume rose 5.2% over the previous year, to €?207.4?billion. The results for 2012, though, are a...

more
Issue 2010-10

Germany‘s construction sector in the second quarter: restrained demand

The cyclical trend in Germany‘s construction sector is still guarded. As reported by the German Building Contractors‘ Association, the number of new construction orders received during the second...

more
Issue 2012-05

21.7% more building permits in 2011

Permits for the construction of 228?400 residential units were issued in Germany in the year 2011. As announced by the Federal Statistical Office (Destatis), that was 21.7% or 40?700 units more than...

more

Statement by Erich Gluch, ifo Institut für Wirtschaftsforschung

Residential construction After around 250 000 completed dwellings in 2006, the figures for 2007 still registered about 210 000 completions; in 2008 the figure will probably be only a round 195 000....

more