The construction industry is even more pessimistic about the current year than before. The industry now expects sales to fall by four percent, whereas previously a drop of 3.5 percent was expected, according to the German Construction Industry Association (HDB). The main reason for this is the expectation that the federal government, states and municipalities will now also cut back on investments due to falling tax revenues. Added to this is the weakness in residential construction. HDB President Peter Hübner said that sales are expected to fall by twelve percent this year. This is primarily why he expects that around 10,000 jobs will be lost in the industry.
The number of building permits continues to fall, and there is no end in sight, said Hübner. He criticized excessive bureaucracy in particular as a major hurdle for the industry. “No industry is as heavily regulated as construction: the picture is characterized by a wide range of constantly changing government regulations, outdated rules and barely digitized public administrations.” In addition, there is uncertainty about what funding is available, and the programs are “confusing and uncertain.” The association head sharply criticized the fact that politicians in Berlin are now “relatively relaxed” in view of the fact that almost 300,000 apartments were completed last year: The number has “nothing to do with current construction policy.”