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Construction industry in Germany - statistics & facts
The construction industry occupies an important position within the German economy. That isn't just because of its size, as it made up over six percent of its gross domestic product (GDP) in 2023, but also because its essential role in creating and renovating the buildings and civil engineering projects that everyone uses every day. Despite the challenges that the industry has has faced in the past years, such as the outbreak of the COVID-19 pandemic, staff shortages, and rising costs , the industry has kept growing over the last couple of years. While the value of the German construction industry only grew slightly in 2021, it saw a important revenue increases in the two following years.
Structure of the German construction industry
The construction industry has three major segments. The first of them, building construction refers to the construction of residential and non-residential buildings. In 2023, there were over 32 million square meters of useful floor space constructed in Germany, of which the majority corresponded to non-residential buildings. Civil engineering comprises construction projects which usually serve the public at large. Roads and motorways were the type of infrastructure construction with the highest turnover in Germany, followed by utility projects for fluids, such as pipelines, wells, and sewage plants. Finally, the industry also includes specialized construction activities, such as electrical or heating, ventilation, and air conditioning (HVAC) installation, painting, glazing, other construction trades, demolition, or even the installation of elevators.Material shortage and construction costs
Raw materials are indispensable for the construction industry. In 2023, structural metal products were among the construction materials with the highest turnover in Germany. The manufacture of concrete, cement, lime, plaster, and products made from those materials also had high revenue figures. During the first years of the COVID-19 pandemic, there were disruptions in the supply chains, which caused shortage problems. Even as of May 2022, over half of German building construction companies still experienced material shortages. More recently, inflation has also affected the construction industry a lot with rising labor and construction materials costs in Germany. However, despite these challenges the building materials and the construction industries have remained resilient.
