The Current State of the Construction Industry: Figures and Facts 2024/2025
The German construction industry is navigating through a challenging phase. A real revenue decline of 4.5% is forecasted for 2025, following a decrease of 7% recorded in 2024. The residential construction sector is particularly affected, with the number of building permits falling to its lowest level since 2010.
The total revenue in the main construction sector is nearly 160 billion euros, but the development is split. While economic high-rise construction is declining by 5%, civil engineering is booming with strong growth of 11% thanks to investments in infrastructure. This shift indicates how important adaptability has become for companies. The number of employees is expected to decrease by around 10,000 to 918,000 in 2024, which increases the pressure on the remaining teams. These figures emphasize the necessity to optimize existing processes and the digitalization of the construction industry to advance.
Given this market situation, companies must enhance their efficiency to remain competitive.
Challenge 1: Increasing Cost Pressure and Decreasing Margins
Cost pressure is the biggest concern for construction companies. According to a PwC study, 85% of firms feel the strain from rising material and financing costs. Since 2021, construction prices have risen by up to 30% depending on the trade. This trend diminishes margins and makes precise cost control essential.
Unstructured communication can quickly lead to costly errors. Incorrectly ordered materials, missed deadlines, or incomplete documentation for measurements can drive project costs up by 5-10%. Legal and automated documentation is no longer a luxury, but an economic necessity. With digital tools, not only can the risks in the construction industry be minimized, but clear cost advantages can also be achieved.
The solution lies in the transparent recording of all activities to avoid additional claims and accelerate billing.
Challenge 2: The Ongoing Skilled Worker Shortage
Despite the economic slowdown, the shortage of skilled workers remains a central business risk for 64% of construction companies. The demographic development exacerbates the situation, as many experienced professionals will retire in the coming years. To meet the demand, the foreign workforce ratio in the main construction sector has risen from 8% in 2009 to 24% in 2024.
This leads to new challenges on the construction site, especially language barriers. Clear and understandable communication is crucial for safety and efficiency. Here are the most common issues arising from the shortage of skilled workers in construction that occur:
- Delays in construction projects due to staff shortages.
- Quality deficiencies due to overloaded or inexperienced teams.
- Misunderstandings due to language barriers that lead to errors.
- Increased administrative effort for coordinating international teams.
Simple multilingual communication tools that require no training are key to success here. They enable maximizing the potential of every single employee.
Trend 1: Digitalization as a Motor for Efficiency and Quality
Digitalization is the most important answer to current challenges. Nevertheless, 82% of companies report that they lack the necessary knowledge to fully leverage the potential. The benefits are enormous: A study shows that 74% of construction companies already use artificial intelligence, mainly in planning (42%) and design (48%).
Digital tools like Valoon optimize central processes directly on the construction site. They enable seamless and legally secure documentation, which is automatically summarized in a construction diary. This saves up to one hour per day in manual follow-up work for each site manager. Die artificial intelligence in the construction industry helps to intelligently structure and utilize data.
The following processes are simplified by digital solutions:
- Automated creation of construction day reports.
- Legally secure documentation of defects by photo and timestamp.
- Simple time tracking directly via WhatsApp.
- Seamless assignment of information to construction projects.
The transition to digital processes need not be complicated and can start right where the employees already are.
Trend 2: Sustainability and ESG as Competitive Factors
Sustainability is more than a buzzword; it is becoming the decisive factor for future viability. The construction industry is responsible for about 36% of global energy consumption and 21% of CO₂ emissions. EU legislation (ESG criteria) increasingly demands transparency in companies’ sustainability reporting.
Already today, three out of four construction companies have implemented standardized ESG processes. Seamless documentation forms the basis for every sustainability report. They must prove which materials were used, how waste was disposed of, and which social standards were adhered to. Those who digitally record their processes have a clear advantage and can easily document their sustainable construction site .
A digital platform helps to collect the data necessary for ESG reporting almost effortlessly and keeps it accessible at all times.
Your Advantage with Valoon: Simple, Efficient, and Legally Secure
The current development of the construction industry demands a change in mindset. Instead of relying on complex software that is not embraced by employees on site, Valoon offers a solution that everyone can use immediately: WhatsApp. We transform the most popular messenger into a professional tool for your company.
Your Advantages at a Glance:
- No Training Required: Your teams continue to use WhatsApp while all data is archived securely in the background.
- Automatic Construction Day Reports: Save valuable time with reports that generate themselves.
- Live Translation: Overcome language barriers with our integrated translation feature in over 20 languages.
- Free for the Construction Site: Only users in the office require a license, while the construction site operates free of charge.
Valoon bridges the gap between the construction site and the office, ensuring 100% legally secure documentation. With this, you are well positioned for the future of the construction industry. Don’t wait for communication chaos to become a real problem.
Book your free demo now and find out how Valoon can revolutionize your processes in just 15 minutes.
More Links
BBSR (Federal Institute for Research on Building, Urban Affairs and Spatial Development) provides analysis and compact information on the topic of construction in 2025.
The Main Association of the German Construction Industry publishes a press release on the construction forecast for 2025.
The Central Association of the German Construction Industry informs about the construction business cycle in 2024 and 2025.
The Fraunhofer IESE offers a blog post with a study on digitalization in the construction industry.
PwC (PricewaterhouseCoopers) highlights the pressure on the construction industry in an article.
The Central Association of the German Construction Industry provides a position paper on digitalization.
The Main Association of the German Construction Industry offers information on the skilled worker situation in the main construction sector.
The Federal Statistical Office (Destatis) provides statistics and information on the topic of construction.
FAQ
How can I improve communication on the construction site?
The easiest way is to use tools your employees already know. Valoon integrates with WhatsApp and enables structured, legally secure communication and documentation without anyone needing to learn a new app. Features like live translation also help to break down language barriers.
How do I quickly and easily create a legally secure construction diary?
With Valoon, all messages, photos, and documents sent via WhatsApp are automatically and legally securely archived and assigned to the correct construction project. This allows you to create a seamless construction diary in PDF format at the push of a button, saving you hours of manual work.
What does a digital solution for construction documentation cost?
At Valoon, the use for all employees on the construction site is completely free. Only office users who manage and evaluate the data (e.g., site managers, project managers) require a license. This lowers the entry barrier and ensures high acceptance within the entire team.
Is documentation via WhatsApp legally secure?
WhatsApp alone is not legally secure, as chats can be altered and deleted, and storage is not GDPR compliant. Valoon solves this problem by archiving all communication content unalterably on German servers and timestamping it. This makes your documentation 100% admissible.
How does Valoon assist with international teams and language barriers?
Valoon has an integrated live translation feature for over 20 languages. An employee can write a message in their native language, and the recipient receives it automatically in their target language. This prevents misunderstandings and promotes smooth collaboration.
How quickly can Valoon be introduced in the company?
Implementing Valoon takes just a few minutes. Since it is based on WhatsApp, there is no training required for the employees on the construction site. They can start immediately and optimize their processes. We offer a free 15-minute demo where we show you everything.
