Germany – The construction industry


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List of Figures

1.Construction industry


List of Figures

Figure 1.1

Real GDP Growth 2008-2015


Figure 1.2

GDP Current Prices - Source: IMF World Economic Outlook (WEO), April 2015


Figure 1.3

Construction industry in Germany


1.Construction Industry

Germany – The construction industry is the most important economic sectors in the country.

First of all, the construction and planning services in Germany, is one of the world's leading country. The reason is that the construction industry has a long tradition and innovation and development plays an important role.

In the twentieth century, Germany was the kingdom of the architect, and constantly output revolutionary architecture style to other countries (Falk, J., 2008.). And the German architect's also were able a profound impact on the international architectural style.

The current major projects are (Wendelin, A., Thomas, G. & Hogan, L., 2012.):

  • “Stuttgart 21” – Main train station project
  • “Jadeweserport” – Habour project
  • “European Central Bank” – High rise project

According to global data, major economic indicator in Germany and gross domestic product is US$3.909 trillion (2015 estimate). However, the real GDP growth has different value including go up and down from 2008 until 2013 (Global Finance, 2015.).

Figure 1.1

Real GDP Growth 2008-2015

(Global Finance, 2015.).

Figure 1.2

GDP Current Prices - Source: IMF World Economic Outlook (WEO), April 2015

(Ghana, 2015.)

On the other hand, about gross national product income in Germany: From 1991 to 2015, the averaged of GNP is 548.17 EUR Billion. In the first quarter, there is additional GNP from 749.80 EUR Billion in the fourth quarter of 2014 to 766.70 EUR Billon (Trading Economics, 2015.).

In terms of market value, the construction industry can provide the jobs about 2.4 million people (Federal, M., 2015.). And many industries are linked to building industry, there are used as economic drivers and to come into being an economic prosperity. For example, the building material and manufacturer of machine are expanding the jobs for peoples and increase the productive forces. That it can help to improve the GDP and GNP in Germany. In 2009, government with industrial organizations is agreed that the construction industry must to develop and on guiding principles for the future development.

On the other hand, the construction industry includes main construction works and finishing works. In Germany, there are about 73,000 companies are active in the main construction that there including construction works and engineering services. About 244,000 companies are providing finishing, interior fitting and renovation works. They are employed the university graduates enter to their companies that can provide training for them to get more of the construction knowledge. Also, and it can increase GNP in Germany.

Figure 1.3

Construction industry in Germany

(Statistisches Bundesamt, 2015.)

German is the official language in the European Union. And are the working languages of the European Commission with English and French. Due to German is an official language, they can attract more country to collaboration and create the economic development.

In Germany, the procurement arrangements are similarly to other country. The parties involved in a project are main contractor, subcontractor and planners such as architects, building services consultant and interior designer. There are including public procurement, special statutory procurement arrangements, private contracts and international contracts.

Starting from 2009, a research report finds out the construction demand average annual growth of 0.5% in Germany. In this average growth, the demand of housing construction is slightly higher. In the construction industry regardless of housing construction for commercial building, they are increasingly focusing on environmental research and against of the climate change.

The German construction industry, the construction method using the MMC -

Modern Methods of Construction. This construction method main system is off-site building systems. Using this system that the purpose is reduced the site labourers in construction site, and move to off-site manufacturing (Kingspan Global, N.A.).

Off-site manufacturing, off-site production and pre-fabrication are provide an efficient process of product management and increase the products produce and easily to control the quality of the products. The OSM industry also has many advantages for construction industry as following: less time for site construction period, reduce the site labour happen the chance of injury. For health and safety, the government has set the ordinance for the employer/contractor to obey at the construction phase: Labour Protection Act, Workplace Ordinance and Ordinance on Health and Safety at Construction Site.

Also, it can be improving the products quality thus reduce to waste the materials at the making process. In additional to improve the construction time and cost in Germany, it can be improved the safety environment for worker working. On the part of materials and machine, construction companies can collaborate with other country, non-local companies or international companies can order their products such as pre-fabrication product (e.g. facade system and timber frame) or machines, that the reputation of construction methods can be upgraded in the world and increase the Germany’s income.

There are many environmental issues that government must consideration.

Germany’s government is very value environmental and sustainability. They are focused on the carbon emissions, the quality of water, and how to deal with waste. The building construction must comply with The Building Energy Saving Act and The Building Energy Saving Ordinance.

Due to the government would optimize the energy efficiency and provide in the all building. The future directions of Germany’s construction are developing the energy-efficient and sustainable, and they built up a German Council for Sustainable Development (Federal Government, 2015.).

Sustainable are mainly the renewable energy sector such as solar panel and wind energy projects.

We will discuss the sustainable issue on patch 2.


  1. Falk, J., 2008. Architektur.Architektur in Deutschland,2. Available at: <Goethe-Institut e. V., Online-Redaktion Web site:> [Accessed: July 1, 2015].
  2. Federal Government, 2015.Sustainability. Available at: < Federal Government, The Press and Information Office Web site:;jsessionid=0A3A49D43DBB4483C81E8B530BD9BB10.s1t1> [Accessed: July 1, 2015].
  3. Federal, M., 2015. IXPOS - Construction.Economic Affairs and Energy. Available at: <IXPOS, German Parliament resolution Web site:> [Accessed: July 1, 2015].
  4. Ghana, 2015.World GDP Ranking 2015. Available at: <African Development Bank Group, Web site:> [Accessed: July 2, 2015].
  5. Global Finance, 2015. Germany GDP Country Report.Germany GDP and Economic Data. Available at: <Global Finance Magazine, Web site:> [Accessed: July 1, 2015].
  6. Kingspan Global, N.A.,Modern Methods of Construction for the Global Property Market. Available at: <Kingspan Global, Web site:> [Accessed: July 1, 2015].
  7. Statistisches Bundesamt, 2015.Construction industry in Germany. Available at: <Wiesbaden, Statistisches Bundesamt Web site:> [Accessed: July 1, 2015].
  8. Trading Economics, 2015. Germany Gross National Income.Germany Gross National Income. Available at: <TRADING ECONOMICS, Web site:> [Accessed: July 1, 2015].
  9. Wendelin, A., Thomas, G. & Hogan, L., 2012. PLC.Construction and projects in Germany : Overview. Available at: <Practical Law Company, Web site:> [Accessed: July 2, 2015].


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