Decline in Construction Sector by 10.6 Percent
In the first half of 2025, the construction industry in Mecklenburg-Vorpommern experienced a significant downturn, with total revenues amounting to 911 million euros – a decrease of 10.6 percent compared to the previous year.
The managing director of the construction industry association in Mecklenburg-Vorpommern expressed concern about this continued downturn, fearing it could persist throughout the year. The residential construction sector showed no signs of improvement, and the economic construction sector was also affected. Employment in the industry decreased by 1.4 percent in the first half of the year, corresponding to the loss of around 150 jobs.
The public sector, which accounted for more than one-third of construction orders, maintained its investments relatively stable. However, order inflows in public construction were 16.9 percent below the previous year's level in the first half of 2025, and even 45.7 percent below in June.
Jansen, the managing director for the construction industry in Mecklenburg-Vorpommern, emphasized the need for quick investments to maintain personnel capacities in construction. He stated that investments must come quickly, and the funds from the 500-billion-euro package for infrastructure and climate protection should be seen as additional, not replacement, funds.
Despite the challenges, Jansen highlighted the enormous demand for housing construction and infrastructure. However, he noted that construction companies cannot maintain personnel capacities indefinitely, emphasizing the urgency for investments.
Looking ahead, Jansen hopes for a turnaround in the second half of 2025. Additional orders are expected in road construction due to tendering by the federal-owned Autobahn GmbH. In 2024, the total turnover in the construction industry in Mecklenburg-Vorpommern was around 2.2 billion euros, with the public sector accounting for approximately 37.7 percent of the total turnover, mainly through road, high, and civil engineering.
Despite the current challenges, the construction industry in Mecklenburg-Vorpommern remains hopeful for a recovery in the coming months, with the potential for increased orders in road construction providing a glimmer of optimism.
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