- The construction industry association expresses its openness towards employing 3D printing techniques in the construction sector.
Struggling construction industry fights for survival. As per the East German Construction Industry Association, the negative trend in contract awards has persisted. Additionally, the first quarter of this year witnessed an increase in business failures. The industry is optimistic about simpler and more budget-friendly residential construction projects.
The Federal Ministry of Housing, Urban Development, and Construction is permitting architects and builders to negotiate reduced construction standards. This, according to Robert Momberg, CEO of the East German Construction Industry Association, in Potsdam, is a positive indication for the sector. "The flexibility provided by the 'E' building type in construction processes is commendable," Momberg said.
'E' signifies 'easy' or 'experimental'. Housing associations lamented that buildings were often constructed to 'excessive' standards due to legal fears. The association also advocates for an initiative to reduce red tape.
3D printing yet to make significant inroads in housing constructions
Could 3D printing, popular in the USA for manufacturing entire structures, impact German construction in the future? The East German Construction Industry Association supports the concept of digitally constructed homes.
Momberg, however, opined that while the advancement of 3D printing as a construction method is encouraging, it may not replace traditional construction methods due to varying building codes across federal states.
Federal Minister of Labour Hubertus Heil (SPD) had expressed his views during a US visit in July, suggesting that large-scale housing construction in Germany could be achieved using 3D printers. "This is exactly what Germany needs," Heil said.
Reduced order intake
Relief is hard to come by in the troubled housing construction sector. Soaring construction costs have led many housing cooperatives and municipal companies to defer new projects.
The East German Construction Industry Association reported a 0.9 percent decrease in the total volume of order intake, from January to May 2024, to 7.53 billion euros. "This represents a slight dip below the already low order intake value of 2023 (7.6 billion euros)," said Momberg. The construction sector continued to witness significant declines, although no half-year figures were available yet.
Concerns over insolvencies
Since 2020, the East German Construction Industry Association has reported a steady increase in business failures in the construction industry in the new federal states. In 2023, it hit its highest level in five years with 255 cases. Worryingly, business failures in the new federal states saw a further rise in the first quarter of 2024, to 74 cases - a surge of over 27 percent compared to the previous year's quarter. "The persistent increase in insolvencies since 2021 underscores the significant economic pressure the industry is under," stated Momberg.
The East German Construction Industry Association represents around 260 construction companies employing approximately 20,000 people in Berlin, Brandenburg, Saxony, and Saxony-Anhalt.
Germany's new housing construction could see a significant drop in the number of new apartments built over the next few years, according to the Munich-based Ifo Institute. Experts predict only 175,000 new apartments for 2026. This would be over 40 percent less than the nearly 300,000 apartments built in 2022.
The East German Construction Industry Association, representing companies in Berlin, Brandenburg, Saxony, and Saxony-Anhalt, expressed concerns over the rising insolvencies in the construction industry, with a surge of over 27% in the first quarter of 2024 compared to the previous year's quarter.
In light of the challenges in the German construction industry, Momberg, the CEO of the East German Construction Industry Association, expressed support for the use of 3D printing in housing construction, although he noted that varying building codes across federal states may limit its impact.
