According to a REUTERS’s report, construction industry will have to cope with stagnating business, after a promising start into 2020. Turnover is supposed to stay at previous year’s level of 135 million EUR, as the trade association HDB stated. Taken into account the development of prices, this equals a decrease of three percent. “Corona epidemic will leave its traces also in our industry”, HDB president Peter Hübner said. The number of staff however might be stable at the level of 870.000. Industry had started the year with a record orders cushion of 52 Billion EUR, expecting a growth of turnover of about 5.5 percent. At the moment, the decline of orders would be at a 30 percent level. “If it goes on like this, it will be dramatic”, Hübner said.
REUTERS signals the possible end of the long-time boom phase
Berlin, April 27th – REUTERS signals the possible end of the long-time boom phase for the German construction industry. Corona crises is expected to slow down business to stagnation in 2020. Though sales were going strong in January and February, the total turnover will only reach the level of 2019, this is what the Central Federation of the German Construction Industry (HDB) issued last Friday, April 24th. “Facing the growing number of reports of order cancellations, fewer calls for tender and restrictions to the construction activities, a growth in turnover is becoming unrealistic”, says HDB Managing Director Dieter Babiel. In December, the industry still announced a 5.5% growth. “Almost 60% of our members questioned are subject to Corona-caused restrictions”, Babiel said.