Tension in building construction: Small companies fight for survival!

Tension in building construction: Small companies fight for survival!

The business situation in public building construction remains tense. This emerges from the latest results Ifo economic surveys which were published on Friday. Despite an increase in the situation indicator since the low point in spring 2024, many companies continue to rate the situation as bad.

Smaller construction companies are particularly affected and are suffering from a significant lack of orders. While public clients are increasingly awarding large projects, smaller companies are finding it difficult to assert themselves and gain traction in the awarding process.

Growth in project sizes

The Ifo construction surveys primarily cover companies that specialize in shell construction work. In recent years, the average project size for new construction has increased, which particularly benefits larger companies. This development means that smaller companies can hardly adapt and therefore come under even greater pressure.

Another critical point is the use of the federal government's special funds. Companies in public building construction hardly benefit from this, as the funds relevant to building construction mainly flow into the modernization of existing buildings such as schools, sports facilities and hospitals, instead of into the urgently needed new construction.

This combination of a persistent lack of orders, changing project sizes and the one-sided use of funds ensures that the situation in public building construction remains tense. The City News confirm the assessments and once again underline the challenges the industry is currently facing.