Survey on the construction supply industry

2009

The financial crisis has reached the German construction materials and supply industry. Our survey of 53 industry executives reveals that almost two thirds (64%) of respondents are already grappling with the consequences of the crisis. Additionally, they still anticipate the sharpest drop in sales in the second half of 2009.

As sales volumes decline, operating costs continue to rise for many. Slumps in profit are thus inevitable. Almost half expect the crisis to last about two years. Almost three quarters of those surveyed expect to benefit from the German federal government's stimulus package, though nearly half see its effects as minor and 30% see no effect at all.

The primary points of contention are the short-term effects and lopsided approach. Suppliers to new residential construction in particular feel left out. Almost all fear the risk of bankruptcy, followed closely by problems at their major customers. Consequently, all companies are lowering their costs, primarily general and administrative, production and overhead costs. For 83%, obtaining financing remains especially challenging