The finance minister of Mecklenburg-Vorpommern, Heiko Geue (SPD), recognizes the challenges in the construction industry and intends to address them with public contracts. He indicted that the state government is prepared to invest up to one billion euros over the next four to five years to bolster the industry, acknowledging the urgent need for new school constructions and renovations. The state and local authorities will allocate 400 million euros for this purpose, focusing on serial construction to expedite completion and promptly assist the industry.
Geue further revealed that a change in the legal basis will empower local authorities to utilize their reserves more extensively for investments, benefiting financially distressed municipalities. The anticipated investment volume is projected to reach 600 million euros, positively impacting children, parents, teachers, and the construction sector in the state.
The construction association expressed concerns regarding drastically increased construction prices, camouflaging the worrying situation in the industry. Jörn-Christoph Jansen, the association's managing director, highlighted a 19.3% decrease in building permits compared to the previous year, indicating worsening circumstances.
Incorporating the enrichment data, the state government's decisions can support the construction industry in various ways:
- Infrastructure Development: Investing in transportation infrastructure, such as roads and railway lines, can stimulate civil engineering activities, contributing to a steady increase in new orders in recent months.
- Housing and Schools: Public investment plans focusing on housing and school construction can provide a steady stream of projects, helping to stabilize output and employment in the industry.
- Climate Protection Initiatives: Supporting projects offering a "sustainability bonus" aligns with national and international efforts to promote sustainable infrastructure and can attract significant investment.
- Specialized Funding Programs: The state government's special guarantee program for manufacturers and shipyards can provide financial stability, enabling critical infrastructure projects elsewhere to proceed without obstacles.
- Research and Development: Collaborations with research institutions like the Fraunhofer Institute can drive innovation in construction techniques and materials, fostering a more competitive and resilient industry.
- Funding for Small and Medium-Sized Enterprises (SMEs): Supporting SMEs through funding programs can help these companies modernize and develop, contributing to a diverse and robust construction sector.
These public investment strategies can work towards mitigating the challenges faced by the construction industry, fostering a more sustainable and stable economic environment.
