Nearly one-third (32%) of companies in the construction sector are facing liquidity problems, according to a survey by the industry federation Embuild.
Eight percent say they are in severe difficulty. Embuild views these figures as a sign that the sector’s situation remains challenging.
More than half of the surveyed companies reported thinner order books than usual, with an average backlog of only 3.8 months.
Expectations for the future are bleak. Only 7% of respondents foresee improved activity in the fourth quarter, while one-third believe the situation will worsen. By 2026, just 13% predict a business recovery.
The housing sector is particularly strained. Sixty-one percent of housing builders anticipate reduced activity in the coming months, while 52% of residential renovation companies share this outlook.
Embuild finds this especially worrying, noting that 75,000 additional homes are needed annually to avoid a housing crisis.
The survey gathered responses from 239 construction and installation companies.
“Since 2022, conditions in the construction and installation sector have not improved,” said Niko Demeester, CEO of Embuild. He predicts zero growth this year, followed by a slight decline in activity by 2026.
Demeester attributes the challenges to rising costs. Construction prices have climbed 29% over the past five years due to higher material costs and increased interest rates, even though rates have stabilised in the past year. More complex permit procedures and stricter sustainability standards are further complicating matters.
He called for “policies that prioritise construction and renovation instead of hindering them.”
