Civil Engineering Companies in Germany Increasingly Busy

Capacity utilization in civil engineering in Germany rose in March to 72.6%, up from 70.1% in February. That is only around 3.5 percentage points below the average for the past ten years of 76.1%. “Civil engineering companies are once again working more frequently in the upper range,” says Klaus Wohlrabe, Head of ifo surveys.

The aim of the German government’s new infrastructure fund is to create additional demand for civil engineering in the coming years. Capacity utilization is expected to increase over the next two years – the previous maximum of around 80% could be reached or even exceeded. However, a noticeable increase in construction capacity is not expected in the short term, as the corresponding investments and adjustments will take time. “Nevertheless, the long-term funding period of twelve years provides planning security. That could motivate companies to make targeted investments in new capacities,” says Wohlrabe.

Capacity in building construction, on the other hand, is currently significantly underutilized. In March, capacity utilization was 62.1%, well below the average of 76.2% for the last ten years. The main reason for this is the order shortage in residential construction. “Shifting workers and machinery from building construction to civil engineering is difficult,” says Wohlrabe. “If at all, it’s conceivable for less specialized activities.”