Construction companies: Almost two thirds expect worse business
The Bavarian construction industry fears a prolonged downturn. Almost two thirds of companies - 62 percent - expect their business to deteriorate further in the coming months. This was stated by Wolfgang Schubert-Raab, President of the Bavarian Construction Guilds Association (LBB), on Monday in Munich. The association does not expect the downturn in residential construction to end in the coming months.
The LBB expects the construction industry's turnover to fall by between seven and eleven percent next year. According to the association's fall economic survey, almost all construction sectors expect falling sales. The only exception is the finishing sector - these are heating installers, window fitters, painters and other tradespeople who transform a new build into a building ready for occupancy.
"The situation in the Bavarian construction industry is serious," explained Schubert-Raab, who has also been representing the interests of the industry nationwide as President of the Central Association of the German Construction Industry for several months.
Concerns about a lack of orders are therefore being further fueled by discussions about the federal budget, after the Federal Constitutional Court recently narrowed the federal government's financial scope for new borrowing in a ruling on the 2021 supplementary budget. As the public sector is an important client, the construction industry fears budget cuts.
Schubert-Raab called on the state government not to cut its construction budget: "Only with a functioning infrastructure will we be able to tackle the major challenges of housing construction and industrial policy, climate change and the energy transition."
According to the LBB economic survey, 38% of construction companies expect to have to apply for short-time working due to a lack of orders. However, 56% of companies also want to train apprentices to the same extent as before, and one in four companies even want to train more than before.
The economic situation in the construction industry is grim, given that 62% of companies anticipate a further decline in business. This pessimistic outlook is partially due to concerns about a potential decrease in public sector orders, as a result of budget discussions and the Federal Constitutional Court's recent ruling on the 2021 supplementary budget.
Source: www.dpa.com
