Public Construction Industry Remains Under Pressure in May, Ifo Survey Reveals
Despite a significant increase in the construction industry’s outlook since its low point in early 2024, many companies still view their situation as poor, according to the latest Ifo survey results released on Friday.
Smaller construction companies in particular are struggling with a lack of orders, said Ifo’s construction expert, Ludwig Dorffmeister. “Public clients have been awarding large projects over a longer period and many small firms have barely had a chance to get involved” he noted.
The firms surveyed by Ifo are primarily engaged in groundwork, which means they are unlikely to benefit from the special fund of the federal government. The fund, intended for the construction industry, is primarily aimed at modernizing existing buildings, such as schools, sports facilities and hospitals, rather than new construction projects.
In the new construction sector, the average project size has noticeably increased in recent years, resulting in a majority of larger companies securing the majority of the contracts.