Punching and stabbing at the building

The point here is to put together a package of measures that will continue to bring the construction industry through the corona turmoil.

Instead of complaining, HDB President Peter Hübner and General Manager Dieter Babiel emphasize the strengths of the sector in the online PK for the construction industry in 2020. The construction has so far come through the pandemic much better than other sectors and can serve as an important economic driver when the economy is restarted, the HDB leaders emphasize. But he needs state help for this, the team said. Because the order situation changed a lot during the crisis.

After an all-time high in the order book at the beginning of the year (volume: 52 billion euros), which promised another magnificent year of construction with 5% more sales (previous year: 135 billion euros), order intake is now falling 30 to 40%, Hübner estimates. So the pipeline is running empty and, Babiel is certain, it has to get new inflows with targeted stimulus measures. For the year as a whole, the industry expects stable sales at best, a minus of 3% in real terms.

In particular, the public sector, which generates over a third of the construction turnover, should not be cut now, the HDB urges. Around 66 billion euros are planned in traffic by 2023. The situation of municipal budgets is also extremely worrying. As a result of the additional corona burdens, there is a threat of 15 billion euros less tax revenue, the first municipalities have already imposed budget freezes, reports Hübner. In the case of public tenders, which are reduced due to sluggish processes, there would be a “bang and stab” at the cheapest offer at the expense of the contractor. If there were five competitors before, according to Hübner, there are now 15.

The head of the HDB sees remedial action in earmarked federal funds, which must not serve legacy issues, and a paradigm shift in the allocation, which too often provides the cheapest offer over the quality of the service.

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