Order situation in the construction industry 2024: Between rough seas and new shores – Here’s how to navigate successfully!
Phew, the order situation in the construction industry 2024 is really quite challenging! We see that companies in Germany and Austria are currently facing a tricky mix of challenges, but also hidden opportunities. Sure, the decline in construction activity, especially in residential construction, is hard to overlook. But hey, at the same time, new doors are opening in other areas like civil engineering and renovation. What’s crucial now? A hefty dose of adaptability and a good strategic compass to stay on course despite the tense order situation in the construction industry 2024 market situation. It’s super important to understand the precise market dynamics and approach things with fresh ideas. That’s where we at Valoon GmbH come into play: We help you manage your projects efficiently even in these stormy times and keep the flow of information smooth. Let’s take a look together at how you can overcome the current hurdles and fully exploit the potentials.
- The construction industry in 2024 is facing a mix of challenges and hidden opportunities.
- A decline in residential construction is being offset by new opportunities in civil engineering and renovation.
- Adaptability and a clear strategy are essential to stay on course.
- Valoon GmbH supports efficient project management and flow of information.
Yes, the construction industry is currently putting on the brakes a bit. This is due to things like the rising interest rates, high material costs, and the general economic uncertainty that’s in the air. But: The demand for infrastructure projects and energy-efficient renovations is still there! For you as a company, this means responding flexibly to the changed demand and getting your own processes in order. The current market situation makes efficiency a must. A market analysis of the construction industry confirms: Particularly residential construction is struggling, while civil engineering benefits from public funds. And the? According to ZDB, remains rather cautious, which shows us all: We need to take action ourselves and seek solutions.German construction industry 2024: A closer look at figures, facts, and regional differences.
Overall economic development and the order situation in the construction industry 2024.
When we look at the figures for 2024, we see that the German construction industry unfortunately had to take another hit. This underscores the tense order situation in the construction industry 2024 market situation all too clearly. Real order intakes have fallen, and revenue in the construction sector is expected to be just under 160 billion euros – that’s a real decrease of about 4 percent. What’s the reason? Mainly due to the still high interest rates, increased construction costs, and a general reluctance to invest. And when we look ahead to 2025, it seems this trend will continue with further declines in revenue and potentially even job cuts. The development of the construction industry in 2024 calls for caution. As a company, you must prepare for a really challenging market environment. It’s crucial to keep a close eye on the
sectoral differences in the construction industry.
However, the situation is not equally bad everywhere – there are significant differences between the sectors. The residential construction has been hit particularly hard,, with a truly dramatic collapse in building permits – in some cases, we’re talking about over 18-20% less! And the number of completed apartments is far below the federal government’s target of 400,000. The situation in commercial construction is quite different; it’s mixed: while commercial high-rise construction is also struggling, commercial civil engineering can benefit from investments in energy infrastructure and transport routes. Public construction remains relatively stable in terms of order figures but is battling the tight budgets of municipalities, which account for about 60% of public construction investments. These differences highlight how important it is to view the order situation in the construction industry from a nuanced perspective.
Regional differences and their influencing factors.
And not only that: Regionally, the situation in 2024 is quite a rollercoaster. Take Baden-Württemberg as an example: The nationwide trends are reflected here, but specific problems arise, such as a particularly drastic shortage of social housing. The construction industry in Baden-Württemberg expects a real decline in revenue for 2024 and sees severe problems in residential construction, up to the point of impending short-time work and bankruptcies. The economic strength of the region, demographic developments, and of course, the political decisions at the state level – all of this plays a huge role in the regional development and trends in the construction industry.. For companies, this means: You absolutely must keep these regional peculiarities in mind in your strategic planning to master the current order situation in the construction industry 2024 situation as best as possible.Residential construction in a bind: Why it’s creaking and what’s behind it.
Rising construction costs and interest rates as main drivers.
The crisis in residential construction, which indeed strongly influences the order situation in the construction industry 2024 has its roots clearly in the cost explosion of construction costs and the rising interest rates. Just think about it: The prices for building materials and energy have really skyrocketed in recent years – between 2021 and 2024, construction prices have risen by about 30%! This cost hammer, together with the higher key interest rates from the European Central Bank against inflation, has made financing construction projects really expensive and complicated. No wonder that the demand for private residential construction loans has totally collapsed. This significantly increases the risks in the construction industry, especially in new builds. Under these circumstances, many projects are simply no longer profitable, leading to cancellations and delays – truly bitter.
- The main causes of the crisis in residential construction are skyrocketing construction costs (about 30% increase from 2021-2024) and rising interest rates.
- These factors have significantly increased the cost and difficulty of financing construction projects.
- Many construction projects are no longer profitable under the current conditions, leading to cancellations and delays.
Criticism of political frameworks and bureaucracy.
But politics and bureaucracy certainly do not make it any easier and are putting pressure on the order situation in the construction industry 2024. The funding policy of the federal government, for example through KfW, is often criticized for simply not being sufficient. Particularly the 14-point plan from the housing summit is not well-received, as it does hardly anything for the urgently needed social housing. And then the long approval processes and numerous regulations – these are additional bureaucratic bottlenecks that delay and increase the costs of construction projects. Industry associations are therefore very clear: We need less bureaucracy and more reliable funding conditions to encourage more investment and to ensure the future of the construction industry looks brighter again.
Demographic change and persistent housing shortage.
Despite this current lull in construction, we must not forget one thing: The demand for housing is huge and will remain so. This is due to demographic changes and an increasing number of people moving to cities. Especially in urban areas, demand is far greater than supply, which drives up rents and exacerbates the housing shortage. Experts estimate that many too few apartments will be completed in the coming years – in 2026, around 175,000 new apartments are expected in Germany. This structural shortage shows us: The current dip in the order situation in the construction industry 2024 does not reflect the long-term demand, but is primarily a result of the difficult economic conditions. Acrisis? Opportunity! Where there are potentials for the construction industry lurking now.
Potentials in civil engineering through infrastructure investments.
Even if the order situation in the construction industry 2024 outlook in high-rise construction, especially in residential construction, is not rosy at the moment, there are glimmers of hope! Infrastructure projects and civil engineering indeed offer really good opportunities. Just think of the urgently needed investments in the modernization and expansion of our transport routes (roads, rail), energy networks (power lines, district heating), and digital infrastructure (hello broadband expansion!). All this is being driven by the public sector, and civil engineering is benefiting – in some cases even with increases in revenue and orders. For construction companies, it could be a smart strategy to focus more on these areas to stabilize the current order situation in the construction industry situation and find new business fields. The data also show that these sectors remain important.
Growth market renovation and modernization.
And another area with significant potential: the renovation and modernization of our existing buildings. Given the climate goals and rising energy costs, energy-efficient renovation is coming more into focus. But also the age-appropriate renovation of apartments is becoming increasingly important due to demographic changes. Fortunately, there are various funding programs from the federal and state levels that financially support such measures and make them attractive for owners. For construction companies, especially crafts businesses, this means stable and growing order opportunities. This can help offset the difficult situation in other sectors. The trends in the construction industry clearly point towards sustainability and the preservation of existing structures.
Increasing efficiency through technological innovations.
Technological innovations are another key to increasing efficiency in construction and reducing costs – and that is invaluable given the current market situation. Technologies like Building Information Modeling (BIM) help better plan and coordinate construction projects. The use of robotics and 3D printing can shorten construction times and save materials. And artificial intelligence (AI)? It comes into play for analyzing construction data and optimizing workflows. Admittedly, the construction industry is traditionally somewhat conservative regarding the adoption of new technologies, but the potential for significant productivity gains is enormous! This enables companies to remain competitive. The future of the construction industry focus is clearly determined by digital transformation.
Advantages of digitization in construction.
So what does digitization specifically bring to tackle the current challenges in the market? A lot:
- More safety in planning: With BIM and digital twins, errors can be detected earlier and cost overruns avoided. That’s something!
- Optimally use resources: Software solutions help efficiently plan personnel, materials, and machinery – especially given the tense order situation in the construction industry 2024 market situation.
- Clear communication: Digital platforms simplify information exchange between all project parties and reduce misunderstandings. This ensures better collaboration.
Strong through the crisis: Success strategies for construction companies.
Specialization in niche markets and new business fields.
In light of the rather challenging order situation in the construction industry 2024 market situation, it’s time for many construction companies to think strategically. A truly promising idea can be the specialization in niche markets . This could mean fully concentrating on energy-efficient renovations, building modular homes, or focusing on very specific civil engineering projects. At the same time, it’s smart to explore new business fields – think of the modernization we’ve already mentioned or the expansion of infrastructure for renewable energies. This brings diversity to the portfolio! Companies that bundle and develop their expertise in in-demand areas become more independent from the general development of the construction industry in 2024 market challenges and strengthen their competitive position. A thorough market analysis of the construction industry market analysis is, of course, the basis for this strategic realignment.
- Specialize in niche markets such as energy-efficient renovations or modular construction.
- Explore new business fields, e.g., modernization or infrastructure for renewable energies.
- Bundle and develop expertise in in-demand areas to become more independent.
- A thorough market analysis is essential for this strategic reorientation.
Increasing efficiency and strict cost management.
Another absolutely crucial point in mastering the crisis is the consistent increase of one’s efficiency and a really strict cost management. What does that mean concretely? Optimizing construction processes, for example with digital tools for project planning and controlling, and reducing waste wherever possible. When purchasing materials and services, it means negotiating cleverly and looking for alternative suppliers. Also, minimizing downtime and improving the utilization of personnel and machinery help to reduce costs. In times of a tense market situation, a lean cost structure can be crucial for survival and significantly reduces the risks in the construction industry overall expenses.
Digitization and automation as efficiency drivers.
Introducing digital tools and automating routine tasks – these are real levers to boost efficiency. Software solutions for project management, construction documentation, and communication can significantly accelerate workflows and minimize sources of errors. And the automation of processes, such as in invoicing or reporting, frees employees from time-consuming tasks and creates space for what truly adds value. Companies that invest in digitization now not only increase their productivity but also become more attractive as employers – and that is not to be underestimated given the shortage of skilled workers in the construction industry. The order situation in the construction industry 2024 demands innovative solutions.
Customer orientation and service quality as a distinguishing feature.
We see it clearly: Due to the current order situation in the construction industry 2024 market dynamics, the market is shifting more towards a buyer’s market. And what becomes even more important? Exactly, customer orientation and service quality! Those who build long-term, trusting relationships with their customers can expect repeat orders and referrals. A strong focus on quality, adherence to deadlines, and open, honest communication sets companies apart from the competition. Excellent service, which goes beyond mere construction performance – for example, through comprehensive consultation or good support even after project completion – can sustainably increase customer satisfaction and loyalty. This is an important point to also fare well in matters such as short-time work in the construction industry and general uncertainty.Valoon GmbH: Here’s how we keep your project communication on a successful course!
Valoon as a solution for communication and management challenges.
Right here at Valoon GmbH, we understand the challenges you face as a company in light of the current market situation all too well. Our mission, our passion, is to elevate communication and project management in various industries, particularly in construction, to a new level. How do we do that? By making the data collection and processing super easy and sustainably improving the flow of information between your field staff and the office. Because let’s be honest: Especially when the order situation in the construction industry 2024 market is tense, every single project that gets efficiently handled counts double. Our software is made exactly for this purpose – it tackles where it gets stuck and helps you streamline your processes. The development of the construction industry in 2024 data clearly shows us all: There’s no way around digital solutions anymore.
Core advantages of the Valoon platform for your company.
With our Valoon platform, we provide you with tangible advantages to manage your projects more efficiently and navigate the cliffs of the current market situation. What truly sets us apart from others? The seamless integration of messenger services that everyone is already using – namely WhatsApp, Telegram, and MS Teams. This is brilliant because your field staff can simply keep working with their familiar tools. It saves training efforts and ensures that the solution is genuinely valued. But that’s not all:
- Simple operation: We designed our platform to be easily understood and operated by anyone.
- Automatic structuring, all on its own: Messages that might come in a bit unstructured over WhatsApp are automatically transformed into valuable, usable project data.
- Speaks many languages: With automatic translation in over 50 languages, collaboration in international teams or with foreign-speaking colleagues becomes child’s play – a real plus, especially considering the shortage of skilled workers in the construction industry. All these features help you finally break down information silos and make your project communication significantly more efficient. And that’s simply crucial in the current
All diese Funktionen helfen Ihnen dabei, Informationssilos endlich aufzubrechen und Ihre Projektkommunikation deutlich effizienter zu machen. Und das ist in der aktuellen order situation in the construction industry market situation.
Practical application examples and success stories.
Our cloud-based SaaS platform has already been successfully used by many B2B companies – especially in the construction industry, in crafts, property management, and facility management. A typical example from practice? The digital documentation directly on-site via messenger:Your employees easily document construction progress, defects, or take measurements via WhatsApp message, photo, or voice note. This information then automatically lands in the correct project, is visible in central task management, and flows into the intelligent reporting system (think of photo documentation or daily reports). Our clients repeatedly tell us that this way, they have significantly less administrative effort and everything has become much more transparent. Such efficiency gains are particularly valuable in cushioning the current order situation in the construction industry 2024 difficulties and positively shaping the future of the construction industry outlook for their company.Looking ahead: What to expect in the construction industry starting 2025 – Trends and drivers.
Forecasts for the construction industry 2025 and beyond.
So what’s next? Well, the forecasts for the order situation in the construction industry 2024 construction industry and also for 2025 remain cautious for now. Experts assume that real revenue in the construction sector could drop again in 2025, perhaps by around 3%, and that further job cuts may occur. The situation will likely continue to be influenced by high financing costs, uncertain material prices, and a rather subdued overall economic sentiment. But in the long term, there is hope: Demographic changes, the still enormous demand for housing, and the necessary infrastructural investments could provide a boost again. Stabilization or even slight recovery is seen by experts as possible no earlier than 2026 – this, of course, hinges heavily on political decisions and interest rate developments. The construction industry in 2025 will thus continue to demand a lot of adaptability from all of us.
- The construction boom is expected to remain subdued in 2025, with potential revenue declines and job cuts.
- High financing costs and uncertain material prices continue to dampen sentiment.
- Long-term hope exists due to demographic change, housing needs, and infrastructure investments.
- A stabilization or slight recovery is expected no earlier than 2026.
Rising importance of innovation and sustainability.
No matter how the short-term order situation in the construction industry 2024 situation looks, two topics will become increasingly important in the long term: innovation and sustainability. The pressure to reduce CO2 emissions in the building sector is enormous. This leads to energy-efficient building becoming more in demand, as well as using materials that conserve resources and are environmentally friendly. Certification systems like DGNB are playing an increasingly important role. Companies that invest in sustainable construction practices and innovative technologies now can secure real competitive advantages and attract new customer groups. This applies to both new construction and renovation, where energy measures are at the top of the agenda. The trends in the construction industry data clearly shows: Green building is the future.
The transformative role of digitization.
Digitization will significantly reshape the construction industry in the coming years – and it is an absolute key factor in overcoming the challenges of the current market situation. Technologies such as BIM, artificial intelligence, robotics, and digital platforms for project management and communication are becoming increasingly standard. They not only bring more efficiency and lower costs but also ensure better planning quality and more transparency.Companies that use these digital tools and adapt their processes are simply better equipped for competition and can seize future growth opportunities. The future of the construction industry future is digital – and we at Valoon GmbH are happy to be your partner on this journey.
Important aspects for future viability.
In order for construction companies to remain successful in the long term, there are a few key points to keep in mind:
- Invest in training: Given the shortage of skilled workers in the construction industry. shortage of skilled workers and many new technologies, it is super important to make sure your employees are equipped and trained.
- Adapt to new regulations: Stricter environmental regulations and construction standards are coming – so you need to remain flexible and continuously adapt.
- Focus on circular economy: Reusing materials and building in a resource-efficient manner – this will only grow in importance, not just for the order situation in the construction industry 2024current situation, but also for years to come.
Conclusion: Master the construction crisis with courage and smart tools – We’re here to help you!
Okay, let’s summarize: The order situation in the construction industry 2024 construction industry presents us all with real challenges, there’s no sugarcoating it. Fewer orders, particularly in residential construction, high costs and interest rates, along with political uncertainty – all of this demands a lot of adaptability and a clear strategic mindset from companies in the construction sector. But, and here’s the good news: There are also opportunities! Civil engineering can profit from infrastructure projects, and there’s significant potential in the renovation sector. What matters now? Innovation and digitization are the keysto becoming more efficient, reducing costs, and staying competitive. The development of the construction industry in 2024 data shows us: We need to take action now and take matters into our own hands.
Companies that are now smart about optimizing their processes, investing in training their employees, and adopting future-ready technologies will emerge stronger from this phase – we are confident of that. And that’s where we at Valoon GmbH come into play: We are your partner to make your project communication and management easier. Thus, we make an important contribution to your success, even when the current market situation is challenging. A clear focus on what your customers need, on quality, and on sustainable solutions will be crucial to minimize the order situation in the construction industry 2024 gerade schwierig ist. Ein klarer Fokus auf das, was Ihre Kunden brauchen, auf Qualität und auf nachhaltige Lösungen – das wird entscheidend sein, um die risks in the construction industry challenges and actively shape the future. future of the construction industry Take advantage of the potentials that exist, especially in times of crisis!
The construction industry is changing rapidly. With the right strategy and the right tools, you can not only master the current order situation in the construction industry 2024 situation but also remain on the path to success in the long term. We at Valoon support you in transforming the daily flood of messenger messages into structured, valuable project data and thus put an end to information chaos. Discover for yourself how our solutions can help you manage your projects more efficiently and set the course for a successful future. Now is the perfect time to get your processes in order. Just reach out to us! We look forward to advising you individually and elevating your projects to a new level of efficiency.Any questions? Let’s talk about your construction site and our solutions!
The construction industry is transforming, and we at Valoon are right in the middle, supporting you with smart solutions. Do you have questions about optimizing your project communication or want to know more about how you can tackle the current challenges? Get in touch with us! We look forward to hearing from you and shaping the future of your construction projects together. Because your efficiency is our drive, especially in times like these.
How does the current order situation in the construction industry 2024 situation specifically affect my construction company?
Die Order situation 2024 is tense, especially in the residential construction due to order declines and high costs. Companies feel this through fewer new projects and price pressure. It is crucial to work more efficiently und seize new opportunities, e.g., in civil engineering or renovation.
Which sectors of the construction industry still show growth potential despite the crisis in 2024?
Despite the general cooling, the commercial underground construction, driven by infrastructure investments (energy, transportation), growth (real growth rates of 9% projected for 2024). The area of rehabilitation and modernization, especially energy-efficient renovations, continues to offer good project prospects.
Our field representatives primarily use WhatsApp. How can this be integrated into professional project management?
This is exactly where Valoon comes in. Our platform enables the seamless integration of WhatsApp and other messaging apps. Messages, photos, and voice notes from the field will be automatically structured and assigned to the appropriate projects without your employees having to learn new, complex software.
How can digitization help my construction company better withstand the current market weakness?
Digitization, as offered by Valoon, significantly optimizes your processes. Through simplified data collection, improved information flow, and automated reporting, you can reduce costs, increase efficiency , and enhance the transparency in projects – crucial advantages in the current market situation.
We employ staff from various nationalities. Are there solutions for language barriers on the construction site?
Yes, Valoon supports the automatic translation in over 50 languages. This significantly facilitates communication, reduces misunderstandings, and promotes a more effective collaboration in multilingual teams directly via familiar messaging services.
How quickly can a solution like Valoon be implemented in the company, and what is the training effort involved?
Valoon is designed for simplicity and user-friendliness. Since your employees continue to use their familiar messaging services, the training effort is minimal. Implementation is fast, allowing you to quickly benefit from the advantages.
What specific advantages does the automatic structuring of messenger communication offer for my project management?
Automatic structuring transforms informal messages, photos, and voice notes into usable project data. This means less manual post-processing, seamless documentation, faster reporting and a solid data foundation for decisions.
What are the forecasts for the construction economy in 2025, and what role does innovation play in it?
Forecasts for 2025 indicate a still cautious construction economy , with an expected real revenue decline of about 2.5-3%. Therefore, innovation and efficiencybecome even more important. Companies that rely on digital tools and optimized processes, as enabled by Valoon, are better positioned to remain competitive in the future and seize opportunities.
