Germany’s Construction Industry Stalls Amid Rising Global Costs

Marcus Nachbauer, chair of the Bundesvereinigung Bauwirtschaft, warns that the current downturn is becoming entrenched. While companies reported higher revenues last year, these figures mask the reality of inflation rather than actual growth. About 80% of firms are struggling with the direct impact of surging costs for essential resources like bitumen and plastics, which further erode profit margins already thinned by stagnant demand.

The sector’s trajectory for 2026 remains grim. Without a fundamental shift in infrastructure investment, streamlined planning processes, and targeted state subsidies, the industry is unlikely to break free from the stagnation that has characterized the last several months.