The current order situation: A sector in transition
The construction industry shows a divided outlook for 2025. While the ifo business climate index in the main construction sector has slightly improved over the past four months, the situation remains tense. The real order intake in the main construction sector decreased by 0.7% in the entire year of 2024. However, this figure conceals the deep divides between the various construction sectors. A closer look at the numbers is essential for strategic planning.
Especially, residential construction is experiencing a severe crisis. For 2025, a real decline in revenue of 5% is forecast, after already falling by 14% in 2024. The number of completed apartments is expected to remain far below the government target of 400,000, at around 250,000 to 255,000. A glimmer of hope in January 2025 with an order increase of over 36% in residential construction turned out to be a statistical outlier, not a trend reversal. This development forces companies to rethink their dependence on residential construction and explore new business areas. The development of the construction industry strongly depends on this diversification.
Commercial and civil engineering: Light and shadow
In commercial construction, a differentiated picture emerges. Commercial high construction suffers from weak industrial conditions, leading to an expected revenue decrease of 4.5% for 2025. Here, the lack of orders directly affects the balance sheets. The situation is entirely different in commercial civil engineering, which proves to be an anchor of stability. Driven by large infrastructure projects such as the expansion of rail networks and power lines, orders here increased by about 28%. This growth illustrates how important public investments are for the entire industry.
This unequal development places high demands on the flexibility of construction companies. The ability to respond quickly to the future of the construction industry and changing market conditions will become a decisive competitive advantage. Focusing on high-margin niches in civil engineering can be an effective strategy to compensate for losses in high construction.
Challenges for construction companies: More than just a lack of orders
The lack of orders is, according to a survey by the ZDB among 1,600 companies, the most common concern. However, the problems run deeper and affect the operational level. Many companies struggle with the consequences of unstructured communication and documentation. Missing or incomplete daily construction reports lead to legal disputes and additional financial burdens. The manual assignment of photos and notes from WhatsApp groups often costs project managers several hours per week.
These internal inefficiencies exacerbate the external pressure from the poor order situation in the construction industry. Here are some of the biggest operational challenges:
- Legal uncertainty: Non-compliant documentation of defects and construction progress poses significant risks for the construction industry.
- High administrative effort: The manual creation of reports and the paperwork for timesheets ties up valuable resources.
- Communication chaos: Information gets lost in countless WhatsApp groups, leading to errors and delays.
- Language barriers: International teams on the construction site often struggle to communicate effectively, which lowers productivity.
These problems lead to declining margins and threaten profitability even in good utilization.
Digitization as a solution: Targeted leverage of efficiency potentials
In a tense market situation, increasing internal efficiency is the most important lever for success. Digital tools that are easy to implement and accepted by employees on-site are crucial here. Instead of relying on complex software that requires extensive training, platforms like Valoon offer a pragmatic solution. Valoon is based on WhatsApp and digitizes communication and documentation without a new app for on-site employees.
Through the automation of routine tasks, significant time and cost savings can be realized. The automatic creation of daily construction reports reduces administrative effort by up to 75%. The legally compliant storage of all data, including time and location stamps, minimizes risk in case of later disputes. Die Trends in the construction industry clearly point towards simple, integrated solutions. Thus, a challenge turns into an opportunity for optimization.
This is how Valoon enhances your operational excellence
Valoon was developed to practically solve typical problems on construction sites. The platform directly transforms the daily communication volume into structured, legally compliant data. This happens without requiring on-site employees to change their familiar workflows. They continue to use WhatsApp, while all information is centrally and clearly consolidated in the office.
Here are specific benefits that you can implement with Valoon immediately:
- Automatic daily construction reports: All relevant information, photos, and voice messages are automatically compiled into a seamless construction journal.
- Legally compliant documentation: Every message and every image is time and location-stamped and stored in compliance with the GDPR.
- Digital timesheets: Time tracking is done easily via message and is automatically prepared for payroll processing.
- Live translation: Valoon overcomes language barriers with an integrated translation function in over 30 languages.
- Efficient defect management: Defects are recorded directly on-site and can be processed and tracked immediately in the office.
These features help to mitigate the shortage of skilled workers in the construction industry by relieving professionals from administrative tasks.
Conclusion: Act proactively instead of waiting
The order situation in the construction industry will remain challenging in 2025. A decline in real revenue of up to 2.5% seems likely. Companies that invest now in optimizing their processes will emerge stronger from this phase. The key lies in efficiency, simplicity, and legal certainty. Valoon offers a straightforward solution to achieve exactly these goals by bridging the gap between the construction site and the office. Don’t wait for better market conditions. Act now and secure your competitiveness for the future of residential construction and beyond.
Increase your efficiency and reduce your costs. Secure your projects legally compliant and relieve your employees. The development of the construction industry in 2024 has shown that digital pioneers have clear advantages. Book your free demo today and find out how Valoon can support your business.
More Links
Das Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) provides a detailed examination of the construction cycle in its publication “Analysis Compact 03/2025.”
Der Main Association of the German Construction Industry publishes its current forecast for the construction industry in 2025.
Der Central Association of the German Construction Industry informs about the construction cycle in the years 2024 and 2025.
An overview of the central themes of the construction industry in 2025 is provided by the Main Association of the German Construction Industry.
Das Federal Statistical Office (Destatis) which provides detailed tables on the main construction sector.
Comprehensive content and statistics on the topic of construction can be found on the website of the Federal Statistical Office (Destatis) information.
Information and tables about businesses in the construction sector are published by the Federal Statistical Office (Destatis) .
Current information on construction prices and the real estate price index is available at the Federal Statistical Office (Destatis) .
Die SOKA-BAU, the social fund of the construction industry, offers comprehensive information about its services and offerings for the industry on its website.
FAQ
How is the order situation developing in the construction industry?
The order situation is divided. While residential construction and commercial high construction suffer from a lack of orders, civil engineering has a robust demand thanks to infrastructure measures. In total, a slight real revenue decline is forecasted for the industry in 2025.
Will residential construction recover in 2025?
No, a recovery in residential construction is not expected for 2025. Experts predict another real revenue decline of 5%. The framework conditions from high interest rates and construction costs remain a significant hurdle for new projects.
What are the biggest risks for construction companies currently?
The biggest risks are the lack of orders, which leads to strong price competition, and internal inefficiencies. Incomplete, non-compliant documentation can lead to high costs in disputes and further burden the already tight margins.
How does Valoon help with the current market situation?
Valoon helps construction companies to make their processes more efficient and legally compliant. By automating construction documentation and time tracking directly from WhatsApp, administrative burdens are drastically reduced. This saves costs and gives project managers more time for their core tasks, strengthening competitiveness in the tense market situation.
Is implementing new software not complicated?
No, with Valoon, the complicated part is eliminated. Your employees on the construction site do not need a new app or training; they simply continue to communicate via WhatsApp. Only the staff in the office use the web-based Valoon platform to manage all information centrally. This ensures high acceptance and quick implementation.
Is the mood in the construction industry improving?
Yes, the mood is slightly improving according to the ifo business climate index, mainly due to less pessimistic future expectations. However, it is more a stabilization at a low level rather than a genuine turnaround, as the current order situation is still assessed as difficult.
