With almost two million employees and a nominal construction volume of almost 400 billion euros, the construction industry is a significant sector of the German economy. It is closely linked to many other industries and trades, and the major economic policy issues such as energy and climate, digitization and the need for skilled workers directly affect the construction industry.

The sector is made up of the main construction trade with around 75,000 companies and 842,000 employees (annual average 2018) and a construction volume (according to the DIW’s comprehensive definition) of around 125 billion euros, and the finishing trade with 250,000 companies with around 1.13 million employees and a construction volume of 142 billion euros. (Figures from 2019; source: Report on the situation and outlook for the construction industry 2020, BBSR).

Around ten percent of Germany’s gross domestic product is spent on construction measures (2019: 373 billion euros). At the same time, the construction industry accounts for almost six percent of total value added in Germany. The main construction industry in Germany is dominated by small businesses: Almost 90 percent of companies have fewer than 20 employees and generate around 30 percent of sales. Large sales, on the other hand, are generated by the 10 percent of companies in the highest size categories (with annual sales of more than 2 to 50 million euros). In 2019, the German construction industry generated sales of an estimated 135 billion euros. Residential construction accounted for 36 percent of sales, as did commercial construction, while public construction accounted for 27 percent. (Source: Main Association of the German Construction Industry).

Construction investment, capacity utilization and order backlog were at exceptionally high levels until the outbreak of the Covid 19 pandemic. In April 2020, the situation in the construction value chain still looks as if it has got off lightly. The construction industry did not experience a shutdown on construction sites; despite staff reductions and some interrupted supply chains for construction materials, work continued on construction sites. The industry has been struggling with delays rather than cancellations. However, only with time will it be possible to assess the effects as a whole and in detail.