Construction Sector Takes a Hit in Schleswig-Holstein
The construction industry in Schleswig-Holstein is facing a rough patch with a 14.3% decrease in incoming orders when adjusted for inflation in the first three quarters of the year, according to the Statistical Office for Hamburg and Schleswig-Holstein. Despite a slight increase in turnover for larger companies with 20 or more employees within the main construction sector, the adjusted price figure saw a decline.
Residential construction took the hardest hit with a 27.2% decrease in incoming orders, while public building construction was the only notable exception with an increase of 20.1%. These figures underscore the importance for construction companies in the region to stay agile and adapt to the shifting market dynamics.
Impacting Factors
The construction industry in Schleswig-Holstein is grappling with a number of challenges, including the decrease in housing permit approvals, increasing construction costs, and rising interest rates on mortgage loans. Private builders and companies are feeling the pinch, with simplified building regulations and more reliable financial support needed to stimulate housing development. The cautious outlook concerning new hires among major companies is also adding to the industry's woes.
Bright Spots
Despite the challenges, there's a silver lining in the form of renewable energy projects and infrastructure development. Companies like Greentech are developing large-scale battery storage systems, while ENOVA is repowering wind farms to improve efficiency and contribute to the local energy transition. The construction of the Fehmarnbelt Fixed Link, a significant infrastructure project connecting Denmark and Germany, will also help revitalize the region's transportation systems.
In the face of these trends and factors, it's crucial for construction companies in Schleswig-Holstein to adapt their strategies and stay ahead of the curve. This may involve leveraging emerging technologies, optimizing processes, and exploring new market opportunities to seize the future of the construction industry in the region.
