Construction industry pessimistic about the future
The significant decline in construction orders is having a negative impact on the mood in the construction industry in Lower Saxony. This is the result of a survey presented on Tuesday in Hanover by the Lower Saxony Construction Industry Association (BVN). "Our small and medium-sized companies with a focus on residential construction are particularly pessimistic about the future," said BVN President Christian Staub.
Compared to 2021, the mood of the 290 construction companies surveyed has deteriorated significantly. In the survey two years ago, four percent of companies rated their business situation in residential construction as poor. In this year's survey, the figure was 57%. There was also an overall shift from a positive to a negative assessment of the order situation. In 2021, 75% of companies still rated their order backlogs as good or sufficient - this year, two thirds of companies described their order backlogs as too low.
The majority of companies are also expecting lower or significantly lower sales for the current year than in the previous year. "It is imperative that instruments are created to get residential construction going again," said Staub. With a view to the future of the construction industry, Matthias Wächter, Managing Director of the BVN, said: "The construction industry must hold out longer in the recession." Relief could not be expected until 2026. Financial incentives are needed for new construction. One suggestion would be a temporary or permanent reduction in land transfer tax, said Wächter.
The Lower Saxony Construction Industry Association (BVN) attributed the pessimistic outlook in the construction industry to the decrease in construction orders. These associations are calling for instruments to revitalize the residential construction sector, suggesting a potential reduction in land transfer tax as a financial incentive.
Source: www.dpa.com
