Germany's construction sector has seen its first surge in the last five years
According to the Hauptverband der Deutschen Bauindustrie association, German construction companies reported revenue growth of 2.5% year-on-year in 2025 after five consecutive years of decline.
"This put an end to a long period of recession," says Tim - Oliver Mueller, managing director of Bauindustrie. "But this is not enough to compensate for the losses of previous years," he notes. However, the Federation is optimistic that the trend will continue and that another 2.5% increase is expected in 2026. "The order portfolio has been replenished somewhat," says Muller.
Last year, the number of orders in companies increased by 6.8%, and by the end of the year - by as much as 10.2%. This was facilitated by projects in the field of railways, pipeline construction, and data centers. "But it will take time before the revenues from these projects decrease, and at the initial stage it will benefit only a few companies," Mueller notes. That's why, according to a recent survey, sentiment in the industry remains modest.
This opinion is shared by the manager of the distributor of metal structures, pointing to the still weakening economy as a whole.
"The pace of building construction remains slow; neither Audi nor VW would consider building new warehouses or production facilities right now," they tell Callanish. "The only thing that has a definite prospect is gas-fired power plants, which are subsidized by the government."
Bauindustrie notes that commercial construction, mainly due to railways and computing centers, may grow by 4% this year. The growth rate of housing and public construction is expected to decrease by at least 2%.
Income from housing construction, mainly in the rebar consumer sector, decreased by another 1.5%. The number of orders has indeed increased by 10%, but from a low level, and companies are still concerned about the lack of orders.
The race for orders in construction leads to an increase in bending work, many of which offer services at a price slightly higher than the cost of rebar in order to provide employment.
Author: Christian Kel Germany
Kallanish.com