Future of the construction industry: Political measures for more competitiveness!

Future of the construction industry: Political measures for more competitiveness!

On June 26, 2025, a new agenda calls on the federal government to fundamentally rethink the political framework in Germany. This demand is structured by three central pillars: financial market, construction industry and political cooperation. The goal is clear: the competitiveness of Germany as a location should be strengthened, private investments should be mobilized and the modernization of the infrastructure should be promoted Table.Media reported.

In the area of ​​the financial market, the need for profound digitalization is emphasized. The federal government should lobby the EU Commission to support distributed ledger technologies. The introduction of machine-readable formats and digital standardization of emissions are also required. Another proposal is the tax exemption for share profits with a holding period of at least ten years and the introduction of a real share pension, which is based on the proposals of the Federal Ministry of Finance. The aim is also to strengthen the financial center of Frankfurt as a leading European financial center.

Construction industry under pressure

The construction industry is currently faced with enormous challenges. The picture is characterized by rising costs, a significant shortage of skilled workers and an infrastructure that is increasingly in need of renovation. Information suggests that housing construction in Germany will remain the construction industry's biggest problem child in 2024. Demand has plummeted due to rising prices and difficult financing conditions, he said DIW.

An infrastructure future law is required to ensure planning acceleration and flexibility in procurement law. The establishing laws are just as important for the distribution of funds from the new special infrastructure fund, which is endowed with 500 billion euros until 2037. The publication of infrastructure status reports by major clients could also help create transparency about the project pipeline and avoid time delays.

Political cooperation for a solution

Another key point is political cooperation, which is intended to bring together all relevant actors from politics, business and civil society. A simplification of the tax system and a reduction of the overall tax burden to an internationally competitive level are essential requirements. De-bureaucratizing tax law and reducing declaration requirements could also help to relieve the burden on companies.

An analysis of current market developments shows that employment in the construction industry has declined in almost all sectors. The uncertainty about the job and income situation of households leads to pronounced savings behavior. Nevertheless, incoming orders in residential construction appear to have stabilized at a consistently low level after the industry bottomed out.

A gradual stabilization of the economy is expected in the coming years. However, financing conditions remain crucial for the further development of housing construction. The decline in building permits for single- and two-family homes is worrying as it has reached its lowest level in over a decade, while inventory measures continue to support housing activity.

Overall, it shows that the challenges in the construction industry and the financial market are closely linked. In order to improve the framework conditions and grow again, a coordinated political strategy is needed. This could also contribute to the acceptance and implementation of construction projects through innovative financing models. Stability indicators suggest a subdued development for 2025, while the long-term forecasts for housing construction point to moderate growth, especially for inventory measures.