Germany, a pivotal country throughout the last century, marred by a colorful past has reached what seems to be a new era of prosperity. Being the world's sixth largest economy and in the midst of a construction boom in both the public and private sector, Germany and the prosperity in the German construction industry is intriguing for us.
However, this period of prosperity brings up many questions. How sustainable is the current construction boom? What is the underlying reason for the growth of the economy? What is the effect of Germany’s shift towards sustainability and R&D? How will Germany manage their aging population? What effects will the aging infrastructure and aging population have on the economic growth of the country? In order to find out the answers to those questions, this report seeks to shed light on current situation in the German construction industry. To begin with, our team conducted a PEST analysis to establish a general understanding of the country’s current situation. We continue by taking a further look into the infrastructure sectors and construction industry, covering current infrastructure status, construction industry overview, 4Ms and other special topics in construction. The report concludes with a SWOT analysis of the German construction industry and summarizes detailed recommendations from the findings.
With China pushing The Belt and Road Initiative, Germany holds critical importance to the international politics and economy in the region making it a hot button of activity. In the current proposal, Duisburg will serve as the European hub for the BRI, providing a connection to Italy and solidifying the western end. However, Germany along with many other European Union companies are skeptical of the Chinese government’s true intentions. Rapid construction growth and great awareness of sustainability can be seen in both infrastructure and buildings. With Germany showing great potential in the coming years, we believe that further study of this country will provide insight into the economic changes to come.