Germany trailed its European counterparts in terms of progress

The construction industry in Germany is on the brink of a digital revolution, with AI-assisted solutions and digitization taking centre stage. This transformation, however, is not without its challenges, as highlighted by recent studies and industry experts.

In contrast to Germany, countries like Austria and DIN standards-driven Germany build according to concrete guidelines, while most other nations set minimum standards or target values, leaving companies to decide their own methods. This difference in approach is reflected in the productivity burden, with regulatory requirements, bureaucracy, and reporting obligations seen as an even greater hindrance to productivity than the average of all industries in Germany.

Competition in Germany is primarily price-based, inhibiting the search for innovative solutions. To address this issue, the Federal Association of Medium-Sized Construction Companies and the Central Association of the German Construction Industry, in collaboration with the Federal Highway Authority and the Deges GmbH, have defined a Building Information Modeling (BIM) performance catalog for highways in 2024. This move is aimed at driving digitization forward and fostering competition based on quality and innovation.

The construction industry in Germany has been slow to adopt digital solutions. For instance, only 24 percent of German construction companies used ERP software in 2021, compared to almost 38 percent in the Netherlands and even 45 percent in Belgium. However, the trend is changing, with almost three-quarters of German construction companies already using AI in planning and design.

AI is making significant strides in the field of Building Information Modeling (BIM), allowing planning errors to be detected early and automatically corrected. Sensors, drones, and autonomous construction machines deliver real-time data, which is analysed using AI, according to Klaus-Peter Stöppler. This data-driven approach is revolutionising the industry, with self-driving excavators, wheel loaders, and dump trucks, as well as AI-controlled cranes and concrete mixers, becoming more common.

The Construct-X research and development project is developing new digital solutions for the construction industry, aiming to increase productivity and efficiency in construction projects by better utilizing data. Examples of AI-assisted tools in construction include Capmo platform for AI-assisted defect tracking, Baubot from Fischer for precise drilling and anchoring work, and Jaibot from Hilti, a semi-autonomous drilling robot with AI-based position recognition.

Despite these advancements, Germany lags behind in digitization compared to other European countries, as revealed by a recent study by the Institute of the German Economy (IW) on behalf of the main association of the German construction industry. The study identifies deficits in research and development, with Germany investing around 3.1 percent of turnover in R&D between 2014 and 2020, compared to up to 7.6 percent in the UK and over 10 percent in Belgium.

The lack of digitization in construction offices is currently a hindrance to the entire construction industry, as identified by Klaus-Peter Stöppler. The industry expert predicts a new era for the construction industry shaped by digital technology and artificial intelligence. With the right investments and policies, Germany could lead this digital revolution, reducing interface problems between different trades, avoiding errors, and ultimately saving up to 20 percent of project costs through early error avoidance and optimized material logistics.

Tim-Oliver Müller, CEO of the main association of the German construction industry, emphasizes the urgency for better processes, more flexibility in procurement law, and better integration of planning and construction. As the digital revolution continues, it is clear that these improvements are crucial for Germany's construction industry to thrive in the 21st century.