After a decade of boom, the construction industry is slipping deeper into recession because of the Corona pandemic. Instead of continuous growth as in previous years, the industry is expecting zero growth in 2020 – experts therefore anticipate a wave of consolidation – and, in some particularly severe cases, even insolvencies.
New paths in the construction supply industry
Even though a market shakeout is always painful, it is warranted in the case of the construction industry. Companies’ capacities have been more than fully utilized for years, especially in Germany. However, many construction companies were operating on the edge of profitability despite the boom, which has now lasted for more than ten years. This inhibits innovation, which at the moment is being driven primarily by the large and profitable companies and less so by the smaller SMEs that dominate the industry in Germany.
Construction suppliers in particular are facing the challenge of finding new ways to position themselves in the market, defy the overall economic uncertainties, and counter the backlog of orders and the steadily growing shortage of skilled workers. Innovative business models and investments in the digitization of business processes and products are just a few examples of possible solutions.
ensign advisory is your sparring partner in the construction supply industry
At ensign advisory, we have a comprehensive and international network of industry as well as technical experts at our disposal and support clients with our many years of experience in order to master these challenges.
Together with our clients, we develop ambitious, achievable goals, which we reach quickly with effective and implementation-oriented action plans and consulting tools to ensure sustainable growth. We support clients with individually tailored strategies for saturated or declining markets, as well as in growing market segments, and help you to implement cost reduction and profitability measures quickly and efficiently.
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