Construction industry in transition: How to master current challenges and seize your opportunities
We all feel it: The German construction industry is facing significant upheaval. A strained construction industry order situation, rising costs, and the skilled labor shortage are presenting companies like yours with entirely new challenges. However, at the same time, technological progress and a growing focus on sustainability are also opening up exciting new opportunities. In this article, we would like to take a closer look at the current situation with you, highlight the critical order situation, and show you how you can make your projects more efficient and significantly optimize your communication with innovative solutions – like those from us at Valoon GmbH. Discover how you can remain successful despite the challenges and set the course for a sustainable development. We are here to actively support you in using digitalization as your lever for greater efficiency and thus sustainably strengthen your competitiveness. Don’t hesitate to contact us for an initial consultation – we look forward to rolling up our sleeves with you!
- The construction industry is undergoing significant upheavals due to strained order situations, cost increases, and skilled labor shortages.
- Technological progress and a heightened focus on sustainability are creating new opportunities.
- The current order situation is an important indicator, but particularly in residential construction, it shows a decline.
- Valoon GmbH offers innovative SaaS solutions for increasing efficiency and optimizing communication in construction.
Current challenges and opportunities in the construction industry – A comprehensive view
The construction industry is currently confronted with a truly complex situation. On one hand, we are facing high material costs, interest rate increases, and a rather subdued economy regarding investment readiness are complicating matters. On the other hand, the huge demand for energy-efficient renovations and infrastructure expansion is providing a significant boost to certain segments. The construction industry order situation situation is therefore rather mixed and calls for smart, differentiated strategies. It’s essential for all of us to react flexibly to market changes and boldly pursue innovative approaches; this is the key to long-term success. The development of the construction industry continually shows us that adaptability and the courage to explore new paths are crucial.
Focus on the order situation: A critical pulse monitor for the industry
Die construction industry order situation is and remains a central gauge of how our sector is faring. Unfortunately, the current statistics indicate a decline, particularly in residential construction. According to the DIW economists, we may only expect a turnaround starting in 2026, driven by hopefully slightly declining interest rates and a projected economic recovery in mid-2025. The current construction industry is grappling with a lack of orders, which naturally slows down investments and new hires. For all of us, it is therefore essential to monitor incoming orders closely to react in time and adjust our plans accordingly.
Valoon GmbH: Our solutions for greater efficiency and better communication
At Valoon GmbH, we have made it our mission to significantly optimize communication and project management in the construction industry. Especially in light of the challenging construction industry order situation circumstances, we offer you a SaaS platform that noticeably simplifies data collection and processing and sustainably improves the flow of information between your field staff and the office. Our solution is consistently based on simplicity and user-friendliness. We aim to lower the barriers to digitalization and help you enhance the efficiency of your projects. Because especially in times of a strained construction crisis optimized processes can make all the difference.The order situation under the microscope: Who struggles, who benefits?
Let’s take a closer look at the construction industry order situation : The picture is currently quite divided. While some sectors can benefit from government investments, others are struggling with significant declines. A precise analysis of the various areas is essential for all of us to truly understand the dynamics and make informed business decisions. The forecast for the construction industry in 2025 should therefore also be viewed in a nuanced manner.
Macroeconomic context: Stagnation and decline – what does that mean for us?
It is clear: The construction market in Germany is hitting the brakes. In February, construction orders fell by a considerable 7.5% compared to January – underscoring how volatile the market currently is. Although there was only a slight decline of 0.3% in the three-month comparison (Dec-Feb), the underlying weakness is unmistakable. The construction industry order situation is suffering, among other things, from the federal budget restrictions since the end of 2024, which are causing delays in new project approvals. This is a development that we are also observing in the general market analysis of the construction industry , which indicates a strained situation and shows us all how important an improved sales strategy in the construction industry is.
Sectoral differences: A close look at residential vs. civil engineering
The development within our construction industry is anything but uniform. The construction industry order situation varies significantly between high-rise and civil engineering. Residential construction is particularly hard hit, while civil engineering can partially benefit from important infrastructure measures. This differing development demands precise analysis of our specific market segments and flexible adaptation of our strategies to the respective construction industry forecast.
Residential construction: A real crisis and lack of prospects?
Residential construction is, we must say quite frankly, in a deep crisis. High interest rates, increased construction costs, and reduced government funding have led to a dramatic drop in building permits. Experts predict only about 220,000 newly completed apartments for 2025 – far from the government’s target of 400,000. The construction industry order situation outlook in residential construction is, to be honest, bleak. Over half of the residential construction companies report a lack of orders. And an end to the crisis? According to 79% of companies, no relief is in sight even in 2025, which sadly highlights the risks in the construction industry. Unfortunately, this is all too clear.
Civil engineering: Stabilization through important infrastructure projects
In contrast to residential construction, civil engineering is thankfully showing greater stability. This is primarily due to investments in infrastructure projects. The 500-billion-euro infrastructure package from the federal government is driving the development here, particularly in road construction, bridge and tunnel renovations, and the expansion of the power grid. Capacity utilization in civil engineering improved to 72.6% in March. However, the construction industry order situation sector is also not without challenges, as the approval of funds for Deutsche Bahn and Autobahn GmbH is unfortunately delayed. The development of the construction industry in 2024 has already shown us how important government impulses are.Why the construction industry is under pressure: Interest rates, politics, and structural hurdles
Why is the construction industry order situation so strained and where does the current plight come from? Well, this is not a simple question, as it involves a complex interplay of various factors. Macroeconomic developments, political decisions, and profound structural problems are all contributing to significant pressure on all of us in the industry. A precise understanding of these causes is crucial for us to actively shape the future of the construction industry. Macroeconomic influences such as higher interest rates, high inflation, and a weak economy dampen demand.
- Makroökonomische Einflüsse wie gestiegene Zinsen, hohe Inflation und eine schwache Konjunktur dämpfen die Nachfrage.
- Unfavorable political framework conditions, including reduced funding and overwhelming bureaucracy, are complicating the situation.
- Deep-seated structural problems, particularly the skilled labor shortage, are hampering the capacities of companies.
- The strained situation is leading to drops in revenue and impending job losses in the industry.
Macroeconomic factors: The influence of interest rates, inflation, and economic conditions
The significant rise in interest rates has dramatically increased the costs of construction projects and unfortunately led to a drop in demand, especially in residential construction. At the same time, high inflation has caused material and energy costs to skyrocket, making calculations challenging for all of us. The overall economic slowdown further amplifies these effects, as both private and commercial investors become more hesitant. This situation has direct impacts on the construction industry order situation and leads to noticeable uncertainty across the entire market. The highlights the significance of these factors.
Political framework conditions: Funding programs and the struggle with regulations
Political decisions also play a crucial role, and we feel this on a daily basis. The reduction or even cancellation of funding programs, for example in the area of energy-efficient construction, has dampened demand. At the same time, many in our industry complain about overwhelming bureaucracy and complex approval processes that delay and increase the cost of projects. The industry is therefore urgently calling for a reorientation of construction policy to improve the construction industry order situation and create incentives for investment once again. The reintroduction of housing non-profit status could be a small step in this direction, but it is by no means enough to turn things around.
Structural problems: The ubiquitous skilled labor shortage and bureaucracy
Alongside cyclical and political factors, our construction industry suffers from deep-seated structural problems. The skilled labor shortage is ubiquitous and significantly hampers the capacities of our businesses. There is a lack of qualified craftsmen, planners, and engineers – we all know that. Added to this is an often felt paralyzing bureaucracy that hinders quick and efficient project execution. These structural deficits exacerbate the strained construction industry order situation situation and require all of us to find long-term solutions, for example, in training and the urgently needed simplification of regulations. The trends in the construction industry indicate an increasing digitalization that could provide relief here, but implementation naturally takes time.
Impacts on our businesses: Revenue declines and unfortunately also job losses
The negative construction industry order situation has direct and often painful consequences for our companies. Revenue declines are widespread, particularly in residential construction, where a decrease of 14% is expected for 2024 and a further 7% decrease for 2025. Unfortunately, this inevitably leads to job losses. Forecasts predict a reduction of up to 30,000 jobs in the construction industry. Many companies feel compelled to short-time work in the construction industry in order to avoid layoffs, which further underscores the strained situation.Looking ahead: What can we expect in the construction industry in 2025/2026?
What do the prospects for the German construction industry look like? To be honest, they remain subdued for now, even though the first glimmers of hope are emerging on the horizon for the medium term. The construction industry order situation industry is expected to recover only slowly, with developments varying greatly between sectors. A careful examination of the
is therefore essential for our strategic planning.
For 2025, most experts unfortunately anticipate a continuation of the negative trend, although possibly in a somewhat milder form. The real revenue in the main construction industry is expected to decline further, with forecasts ranging from -1.4% to -3%. Residential construction will remain under pressure, with an expected revenue decline of up to 7%. The construction industry order situation situation remains strained, and a quick turnaround is unfortunately not in sight. The
will continue to shape our industry.
From 2026, the situation could slowly improve – that would be something! Economists expect a slight recovery driven by potentially falling interest rates and a general economic uptick. Especially in high-rise construction, positive growth rates are anticipated again starting in 2025. Nevertheless, the pre-crisis level, particularly in residential construction, will likely not be reached for a considerable time. The construction industry order situation will therefore only improve gradually, and we companies should prepare for a longer phase of adjustment. The forecast for the construction industry in 2030 is certainly still laden with many uncertainties.
Long-term trends: Digitalization, sustainability, and new business models as our opportunities
Regardless of short- and medium-term economic fluctuations, long-term trends will sustainably change the construction industry – and that is a good thing! The digitalization, that is, the use of technologies like BIM, drones, and AI, is becoming increasingly important for our efficiency and project control. At the same time, the topic of sustainability is gaining more focus, with rising demands for energy-efficient construction, recyclable materials, and green infrastructure. These developments require us companies to adapt our business models and invest in new skills to actively influence the future positively. construction industry order situation to positively shape the future.
Expert opinions and studies: What do the pros say about future developments?
Numerous studies and expert opinions confirm the picture of a sector in transition. The Central Association of the German Construction Industry (ZDB) and the German Institute for Economic Research (DIW) regularly point out the challenges but also the need for political support. Where they all agree: The construction industry order situation can only be improved through a comprehensive bundle of measures. These range from reducing bureaucracy to targeted funding to strengthening education and innovation. Theare an important indicator that we should all keep an eye on.
What can we as construction companies do when the construction industry order situation is so strained and so much is changing? We must act proactively and adjust our strategies. It’s not only about overcoming current challenges, but also about setting the course for our long-term success. Digitalization, sustainability, and a smart market orientation play a central role in this. The trends in the construction industry clearly shows us the way.
Increasing efficiency through digitalization and automation – there’s enormous potential here!
Digitalization genuinely offers us enormous potential for increasing efficiency. By using Building Information Modeling (BIM), we can optimize planning and construction processes and reduce errors. Drones enable quick and precise inventory and construction progress monitoring. Artificial intelligence (AI) can assist us in analyzing large amounts of data and support our decision-making processes. Automating routine tasks relieves our valuable skilled workers and creates space for more complex activities. We can also achieve an improved order situation through internally optimized processes. And this is where we at Valoon come in: We support you in simplifying your communication and project management through digital tools.
Optimizing processes and resources – let’s tackle it!
In addition to the use of technology, consistently optimizing our internal processes and resource use is crucial. This includes lean project management, transparent communication, and efficient construction site logistics. The digital capture of data on-site, as enabled by our Valoon platform, plays a key role here. It reduces media breaks, avoids errors, and accelerates the flow of information. This way, you can manage your projects profitably despite a challenging construction industry order situation construction environment and positively shape the development of your construction industry. Focus on sustainability and resource-efficient construction – more than just a trend
Fokus auf Nachhaltigkeit und ressourcenschonendes Bauen – mehr als nur ein Trend
Sustainability is no longer just a trend but a true necessity and increasingly a critical competitive factor. Our customers and investors are placing more and more value on energy-efficient buildings, the use of environmentally friendly materials, and resource-efficient construction methods. Companies that provide innovative solutions in this area can distinguish themselves positively from competitors and tap into new market segments. This can improve the construction industry order situation for the company, even if the overall market may stagnate. The current construction industry must and will meet these demands.
Diversifying the business model and exploring new markets – broadening our focus!
In times of uncertain construction industry order situation it can be absolutely sensible to diversify our business model. This means not just focusing on one segment like new construction but also placing greater emphasis on other areas such as renovation, modernization, or infrastructure construction. Additionally, exploring new regional markets or niches can spread risks and open up new growth opportunities. A careful market analysis of the construction industry is of course the foundation for this.
Key benefits of digitalization in construction – what it really brings you!
Digitalization offers us numerous advantages to tackle the challenges of the current construction industry order situation :
- Increasing efficiency: Faster processes, fewer errors, and optimized resource use lead to significant productivity gains – it pays off!
- Cost reduction: Through better planning, less rework, and optimized material procurement, we can significantly reduce construction costs..
- Improved collaboration: Digital platforms enable a seamless communication and coordination of all project participants, which can help us to mitigate the construction crisis .
Valoon by your side: Build simply and efficiently – even when it gets tough
Especially when the construction industry order situation is challenging, efficiency becomes paramount. We at Valoon GmbH know this all too well, as we understand the specific needs of companies in the construction industry, crafts, and facility management from our daily work. Our mission is to simplify your project communication and data management so that you can focus entirely on your core business. Because we are convinced: The future of the construction industry. is digital, and we want to accompany you on this path as partners.
The challenges of communication and project management in the construction industry – do you experience this too?
Who doesn’t encounter this in the construction industry? We often deal with fragmented communication channels and a true flood of unstructured information. Misunderstandings between the office and the construction site, lost data, and time-consuming documentation processes are unfortunately often the order of the day. This not only leads to inefficiency and higher costs but can also negatively impact the construction industry order situation of individual projects, when deadlines and budgets are not met. Many companies also struggle with the adoption of new software, especially among field workers – a hurdle that we want to overcome together.
Valoon’s approach: Simplicity, user-friendliness, and seamless integration – that’s how it gets easier!
Our approach at Valoon is therefore clear: We want to provide you with one of the easiest project management software in the world. We rely on the seamless integration of common messenger services like WhatsApp. This means your field workers can use familiar tools without the need for extensive training. This simplicity significantly lowers the barriers to digitalization. The automatic structuring of unstructured communication into actionable project data is a core part of our solution. This way, we help you manage the daily flood of information and improve the construction industry order situation through a more efficient project execution.
Core functions and benefits of the Valoon platform – what’s in it for you:
Our cloud-based SaaS platform offers you a variety of functions that we have specifically tailored to the needs of the construction industry and that help you to better manage the current construction industry order situation .
- Digital capturing on-site via messenger (e.g., WhatsApp): Your employees simply send photos, voice messages, or texts via WhatsApp. Valoon automatically structures this information and assigns it to the correct project. This significantly reduces the documentation effort – time that you can use more effectively elsewhere!
- Central task management and intelligent reporting: All tasks are viewable and traceable in a central location. With just a few clicks, you can create photo documentation, measurements, or daily reports. This ensures transparency and better project control – you have everything under control!
- Automatic translation and multilingual communication: Our platform automatically translates messages into over 50 languages, overcoming language barriers on the construction site. This greatly enhances collaboration in international teams. These features significantly help to minimize the
Diese Funktionen tragen maßgeblich dazu bei, die risks in the construction industry. while simultaneously increasing your efficiency.The Valoon effect: Better communication, better order situation – here’s how!
When projects run smoothly, that’s worth its weight in gold – especially when the construction industry order situation is strained and every order counts. We at Valoon firmly believe: Excellent communication and smart project management often make all the difference here. It’s not just about cutting costs; we want you to enhance the quality of your work and sustainably impress your customers. The development of the construction industry in 2024 has already shown us how important adaptability is.
Reducing communication errors and misunderstandings – finally clarity!
Imagine: Through the central collection and structuring of all project-related information via our platform, communication errors and misunderstandings are minimized.Everyone in your team has access to current data, whether in the office or directly on the construction site. Isn’t that a dream? This way, you prevent costly rework and delays that can negatively impact the construction industry order situation of a project. Clear instructions and seamless documentation are key to success.
Accelerating processes and project workflows – more speed for your projects!
The automation of routine tasks, such as report generation or information assignment to projects, significantly accelerates your entire project workflows. Decisions can be made more quickly, as all relevant data is immediately available. Shorter project durations not only mean lower costs but also the opportunity to process more orders in the same timeframe. And this can significantly improve the construction industry order situation for your company. The forecast for the construction industry in 2025 may be challenging, but efficient processes always help you make the best of it.
Improving customer satisfaction and loyalty – turning customers into fans!
Transparent communication, on-time completion, and high-quality work are the ingredients for true customer satisfaction. With Valoon, you can better involve your customers in the process and provide them with updates on project progress at any time. Satisfied customers are not only more likely to give you repeat orders but also to enthusiastically recommend you. This is an invaluable factor in positively shaping your own construction industry order situation in the long term and standing out from competitors who may still be struggling with a declining construction market. Boosting competitiveness and securing new orders – stay one step ahead of the competition!
Steigerung der Wettbewerbsfähigkeit und Erschließung neuer Aufträge – seien Sie der Konkurrenz einen Schritt voraus!
Companies that digitalize and optimize their processes are simply more efficient, flexible, and can respond faster to customer inquiries. This increases your competitiveness. significantly. You can calculate tighter offers without sacrificing profitability, allowing you to assert yourself even in a challenging market environment. Improved efficiency and a strong reputation can help you acquire new orders and successfully expand your business. construction industry order situation new orders.Strong together: Master the change with Valoon and secure the future
Phew, one thing is clear: The German construction industry is in the midst of a major upheaval. The construction industry order situation situation is not easy, costs are rising, and the shortage of skilled workers is a challenge for all of us. But you know what? Where there are challenges, opportunities always lurk! Innovation, digitization, and a strong focus on efficiency are the keys for us not just to survive, but to emerge stronger from this transformation. We firmly believe: The future of the construction industry. future belongs to those who are willing to take new paths.
- The construction industry faces challenges such as uncertain order situations and a shortage of skilled workers, but also presents opportunities through renovation needs and digitization.
- Innovation and digitization are crucial for optimizing processes, reducing costs, and improving collaboration.
- Valoon GmbH positions itself as a partner that facilitates digitization and increases efficiency with a user-friendly SaaS platform.
- A proactive approach and the right tools enable companies to successfully navigate change and secure their future.
Summary of the current challenges and opportunities – what we have learned
We have jointly looked at how uncertain the construction industry order situation situation is right now, especially in residential construction. Rising interest rates, high material costs, and political conditions pose significant hurdles. At the same time, the need for renovations, infrastructure expansion, and the major trends towards sustainability and digitization open up new business fields and great opportunities for differentiation. It is up to all of us to actively seize these opportunities and positively shape the construction industry forecast future of our companies.
The significance of innovation and digitization for our joint success
Innovation and digitization – these are not just buzzwords for us. They are essential tools for our future success. They allow us to optimize processes, reduce costs, and significantly improve collaboration.. Companies that invest now in modern technologies and digital solutions can increase their efficiency and gain a decisive competitive advantage in a tense construction industry order situation environment. The trends in the construction industry data clearly shows us: Digital transformation is unstoppable, and we should embrace it as an opportunity.
Valoon GmbH: Your reliable partner for efficient project management and better communication
And this is exactly where we see ourselves at Valoon GmbH: as your partner by your side. Our mission is to provide you with our simple and user-friendly SaaS platform to equip you with the tools you need to revolutionize your project communication and data management. Through seamless integration of messengers like WhatsApp and the automatic structuring of information, we help you overcome the hurdles of digitization and make your projects noticeably more efficient. This way, you can master the current construction industry order situation challenges and position yourself for the future – you can rely on that.
Outlook and your next step – let’s take off together!
Die construction industry order situation will certainly remain volatile in the coming months and years. But with the right strategies and tools, you can navigate these challenges successfully. We at Valoon support you in optimizing your communication, streamlining your processes, and sustainably strengthening your competitiveness. Invest now in the future of your business and secure your success.
Now is the perfect time to explore the possibilities for your project. Contact us today, to start your individual consultation and learn how Valoon can simplify your project work. Register and discover for yourself how easy and effective efficient project management can be. We look forward to hearing from you!
What is the current order situation in the German construction industry?
Die Order situation in the construction industry is tense, especially in the residential construction sector, which has seen significant declines. Civil engineering appears more stable thanks to infrastructure projects, but the overall economy is subdued.
Which sectors are most affected by the current construction crisis?
Der residential construction sector is suffering the most from a lack of orders, high interest rates, and material costs. In contrast, the civil engineering sector, especially economic civil engineering (+4.5% real revenue projection for 2025), benefits from public infrastructure investments..
What problems are construction companies facing due to the poor order situation?
Companies are struggling with declining revenues, which can lead to job losses and short-time work. The shortage of skilled workers und and bureaucratic hurdles further exacerbate the situation.
When can we expect an improvement in the order situation in the construction industry?
Experts expect a slow recovery starting in 2026, driven by potentially lower interest rates and a general economic revival. However, a real revenue decline of about 1.4% to 3% is still anticipated for 2025.
How can Valoon help my construction company work more efficiently despite the crisis?
Valoon simplifies your project communication and data collection.By integrating messengers like WhatsApp, your field staff can provide data directly from the construction site without additional training. that Valoon structures automatically. This saves time and reduces errors. Does the use of Valoon actually reduce the effort for documentation and reporting?.
Reduziert der Einsatz von Valoon tatsächlich den Aufwand für Dokumentation und Berichterstattung?
Yes, Valoon automates the structuring of information sent via messenger (photos, texts, voice notes) and assigns them to projects. This can significantly reduce the documentation effort and speed up the creation of reports..
