Germany construction industry Projected to Show Stable Performance: Ken Research

Ken Research announced recent publication titled “Construction in Germany” . The report provides a comprehensive analysis on the construction market of Germany. It gives analytical and detailed current and future market trends in the German market. It further gives analysis of market size and structure along with equipment, material and service costs across each project type within Germany. Additionally, it gives insight on the risks, opportunity and Profiles of the leading operators in the Germany’s construction industry.

Germany has a GDP of over USD 3.8 trillion. Its economy is a social market economy with highly skilled labour force, a large capital stock, a low level of corruption, and a high level of innovation. The service sector is the largest sector of the economy , followed by manufacturing sector then primary sector . It is the world’s third largest exporter of goods . In 2014, it recorded the highest trade surplus in the world at worth 285 billion USD making it the largest capital exporter. Germany is known for its specialized small and medium enterprise known as the Mittelstand model.

The Germany has a fair share in economic problems as well. It suffers from the problem of stagnant wages, inadequate investment , broken bank and poor productivity growth. It is quite difficult to start a business in this country . It ranked at 114^th place at ease of doing business index leading to high migration of its entrepreneurs to the silicon valley.

One of major issue that the industry faces is the problem of poor payment behavior by the public buyers and puts a pressure on the supplier’s liquidity. The sector is quite risky due to low equity ratio and limited financial scope. Additionally, due to low availability of background information, the issue of credibility is a concern for many.

The industry has slowed down a little in the recent past due to euro zone crisis as it led to poor investor confidence. However, it is expected that construction work will pick up as the government plans to develop the country’s transport infrastructure and phase out nuclear energy production by 2022. The other major drivers for this industry are low cost of borrowing, higher spending on social housing and special tax incentive to investors.

Topics Covered in the Report