Construction in Europe: Insights ahead of BAUMA 2025
As we prepare to join the BAUMA 2025, we at Polarmatic would like to share some thoughts about the current landscape of the construction industry in Germany and Europe. BAUMA offers us a platform to discuss the emerging trends and their effects on the industry going forward, from possibilities to challenges.
The construction industry is an important sector for driving economic development and infrastructure growth across Europe. The performance of the construction market in Germany plays a significant role in the broader European economy and its growth. In addition, developments in Germany will influence neighboring markets in terms of materials, labor, and technology.
As the industry evolves, it is vital for all stakeholders in the construction business to remain aware of these shifts to capitalize on emerging opportunities.
What is Shaping the Construction Industry?
Addressing the German Housing Shortage
Facing a significant housing deficit, the demand for affordable housing is one of the challenges Germany and the construction industry in Europe aim to solve. Germany has already started to take many actions and one of the implemented instruments is the degressive depreciation program, introduced under the Wachstumschancengesetz (Growth Opportunities Act) initiative.
This program helps address the housing shortage by allowing investors in newly constructed residential buildings to write off a significant portion of their investment costs over a short period. Investors can depreciate 5% of the investment costs annually for six years, totaling a substantial 30%. However, this will only apply to new residential buildings constructed between October 2023 and September 2029.
Our contributions to construction projects include fuel-efficient solutions and technology using district heating for concrete production. These innovations support the construction of new residential buildings by enabling year-round construction through the Polarmatic concept of Total Temperature Control.
This concept maintains consistent concrete temperatures regardless of weather conditions, providing the necessary heating, cooling, and curing solutions for concrete and concrete product manufacturing. By increasing productivity and efficiency, our solutions help meet the demand for affordable housing more effectively.
Technological Advancements
Governmental initiatives supporting digitalization and automation are recognized as crucial in transforming the construction industry. Measures like Building Information Modeling (BIM), Artificial Intelligence (AI), automation and robotics are enhancing project planning, cost reductions, and addressing labor shortages. The integration of these technologies will play a significant role in the coming years, increasing operational efficiencies and our shared ability to meet demands.
We at Polarmatic are proud to be part of the frontier as we prepare to launch a new AI-supported system feature at BAUMA. An excellent addition to our already highly automated solutions. Our heating systems have been fully automated for years. They operate on an on-demand basis, starting and stopping as needed without requiring any user intervention.
Challenges for the Construction Industry to Overcome
Geopolitical Events
The construction industry in Europe has been extensively affected by geopolitical events, particularly the ongoing war in Ukraine. A survey conducted by the German construction industry association showed that 90% of respondents reported being directly or indirectly affected by the conflict.
Key issues include price increases and supply shortages of materials such as steel, bitumen, and concrete. In addition, serious energy and fuel-related challenges have emerged, impacting on industry’s ability to operate effectively.
As a solution, we offer a wide range of solutions that can use any available fuel, even multiple alternatives simultaneously. This versatility helps concrete producers manage costs and maintain production when the energy markets fluctuate.
Labor Shortages and Material Costs
Labor shortages continue to plague the industry, intensified by demographic shifts like the aging workforce and competition from other sectors. High material costs also strain project budgets, directly affecting profitability and execution. Addressing these challenges requires coordinated efforts in training and development, along with the adoption of automation technologies.
Polarmatic is proud to offer solutions for these challenges; Our technology is neither a boiler nor a pressure vessel meaning that our systems do not require certified operators or regular inspections. Our systems offer straightforward, efficient, and automated solutions to the labor challenges of the concrete industry.
Material Availability
The availability of quality materials continues to impact project timelines and costs. Even though the COVID-19 pandemic is behind us, it still affects global supply chains, leading to delays and shortages of construction materials. Although the situation has improved since 2024, some materials still face long lead times and high costs.
From the perspective of concrete manufacturing, one of the increasingly relevant approaches is the use of blended cements, as it can be implemented without sacrificing productivity by utilizing our TURBOMATIC system for heating the aggregates. This solution enables concrete producers to adapt to material constraints while maintaining efficiency and quality in their production processes.
The shift toward sustainable materials is critical for the construction industry. Demand for these materials is rising, and businesses must establish strong supply chains capable of providing eco-friendly options to meet both regulatory standards and customer expectations.
Come and Meet us at BAUMA – #letstalkconcrete and the Future
Looking ahead, the construction industry is poised for transformation through sustainability, advanced technology, and strategic policy shifts. Stakeholders in this business must stay informed about forthcoming innovations and policy changes to effectively manage challenges and capitalize on opportunities for growth.
As one of the market leaders in the concrete industry, we are committed to staying informed and proactive in this landscape.
We invite you to join us at the BAUMA 2025 trade fair, where we can discuss insights, innovations, and the future of the construction business together. Through collaboration, we can overcome challenges and seize opportunities for sustainable growth.