Construction industry weakens in Germany
ECONOMY & POLICY

Construction industry weakens in Germany

A recent study by the German Construction Industry Federation (HDB) has revealed a bleaker outlook for Germany's construction sector. Contrary to earlier projections, the industry is anticipated to contract by 4% this year, slightly worse than the previously estimated 3.5%. This downturn is predicted to result in approximately 10,000 job losses.

The study attributes this decline primarily to weaknesses in residential construction, with sales expected to plummet by 12% in real terms. Additionally, public construction works are forecasted to underperform compared to initial expectations.

This adds to the overall gloomy forecast for construction in Europe's largest economy, which is grappling with challenges such as rising interest rates, heightened inflation, and economic stagnation.

Peter Huebner, President, HDB, expressed concern over the employment forecast, emphasising the anticipated reduction of 10,000 employees. He stressed the imperative for action, stating, there can only be one solution: build, build and build.

Despite the overall downturn, the study highlights a silver lining in commercial construction, where sales are projected to increase by 1.5%. This growth is attributed to substantial orders from entities such as Deutsche Bahn, electricity network operators, and local transport authorities.

(Source ET)

A recent study by the German Construction Industry Federation (HDB) has revealed a bleaker outlook for Germany's construction sector. Contrary to earlier projections, the industry is anticipated to contract by 4% this year, slightly worse than the previously estimated 3.5%. This downturn is predicted to result in approximately 10,000 job losses. The study attributes this decline primarily to weaknesses in residential construction, with sales expected to plummet by 12% in real terms. Additionally, public construction works are forecasted to underperform compared to initial expectations. This adds to the overall gloomy forecast for construction in Europe's largest economy, which is grappling with challenges such as rising interest rates, heightened inflation, and economic stagnation. Peter Huebner, President, HDB, expressed concern over the employment forecast, emphasising the anticipated reduction of 10,000 employees. He stressed the imperative for action, stating, there can only be one solution: build, build and build. Despite the overall downturn, the study highlights a silver lining in commercial construction, where sales are projected to increase by 1.5%. This growth is attributed to substantial orders from entities such as Deutsche Bahn, electricity network operators, and local transport authorities. (Source ET)

Next Story
Infrastructure Transport

Bengaluru’s Pink Line 95% Complete

Bengaluru Metro Rail Corporation Limited (BMRCL) has announced that 95% of the tunneling work for the Pink Line of Namma Metro is complete, with the 21-km stretch expected to be operational by 2026. The corridor runs from Kalena Agrahara in South Bengaluru to Nagawara in the North, including a 13.8-km underground section from Dairy Circle to Nagawara. BMRCL Chief Engineer (Underground), Subrahmanya Gudge, highlighted that the Pink Line stations will generally have only two entries, except MG Road Metro station, which will feature four to prevent road crossings. He also emphasized how lessons ..

Next Story
Infrastructure Transport

Jogighopa Terminal Boosts Trilateral Trade

Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal inaugurated an Inland Waterways Terminal (IWT) on the Brahmaputra in Assam’s Jogighopa. The terminal, built at a cost of $9.8 million is set to enhance trade and connectivity in Eastern India. To mark the occasion, the Minister flagged off two ships, MV Padma Navigation-II and MV Trishul, and two barges, Ajay and Dikshu, carrying 110 metric tonnes of coal and stone chips to Bangladesh. “The IWT terminal at Jogighopa is set to transform the connectivity in the region and bolster our trilateral trade with Bhutan and Banglad..

Next Story
Infrastructure Transport

IRCON Wins $75M Mumbai Metro Line 6 Contract

The Mumbai Metropolitan Region Development Authority (MMRDA) has declared IRCON International the lowest bidder for Package CA-233 of Mumbai Metro Line 6 (Pink Line), a 15.18 km corridor connecting Swami Samarth Nagar (Lokhandwala) to Vikhroli. MMRDA floated the tender in January 2024 with an estimated cost of $71 million. Four firms submitted bids, with three qualifying for the financial evaluation stage. IRCON emerged as the lowest bidder with an offer of $75 million—just 6.71% above MMRDA’s estimate. Financial Bids (? billion/million): IRCON International – Rs 6.27 billion ($75 mil..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?