Get A Move On! The Call to Action for Construction Industry Amidst New Government's Infrastructure Push
Booming Prospects in Government-Backed Construction Sector Enthusiastically Anticipated by Industry Members - Government's fresh funds to bolster - Construction sector anticipates upturn
Here's the shovel, let's get digging: The Rhineland-Palatinate construction industry is pinning their hopes on the new federal government and their multibillion-dollar package to provide a much-needed kick-start. Besides the capital influx, states and municipalities need to pave the way for infrastructure projects, emphasized Klaus Rohletter, the Association of the Construction Industry Rhineland-Palatinate president, in anticipation of today's Construction Industry Day in Mainz.
To make sure the money is wisely invested, so-called project planners are in high demand. According to Rohletter, lack of capacity in the construction industry won't hinder the renewal of infrastructure. "We've kept ourthumb on the pulse of the industry during the crisis, and we're ready to deliver," he asserts confidently.
"Stimulus needed from the government"
The revamp of infrastructure is essential regardless of political leanings, Rohletter affirms. "It's not just about spending money from the government through their special fund; it's about creating a demand boost. Hopefully, other investors will follow suit," he explains.
It's also time for some action in the housing sector. "Private investment in housing is dwindling, so there's no increase in supply," Rohletter points out. He believes concerted efforts are needed to entice private investors to take the leap. "We need to find ways to reduce manufacturing costs and streamline planning requirements for apartments. We also need to keep an eye on interest rate developments," he adds.
Rohletter urges for a lighter touch from bureaucrats in the future. They have previously engendered a regulatory juggernaut, with many tasks being delegated to administrative regulations, often accompanied by flip-flopping changes. "This has created uncertainty and hindered growth and decision-making," Rohletter expresses. He argues that the new government should have faith in the market and its players.
"Some projects take five years to get approved, and some take half a century," says Rohletter. "That's unacceptable in today's fast-paced society. We need to weigh the pros and cons, and the common good must always trump the interests of the minimal few."
In general, Rohletter contends that it's high time for a change in attitude. "For too long, Germany has been complaining instead of acting, lacking the 'roll up your sleeves' mentality, and lacking decisiveness," he expresses. "Everyone is called upon: consumers, customers, businesses, and of course the public sector at various levels."
The enrichment data reveal that the new federal government has announced several initiatives that could impact the construction and real estate sectors, mostly through regulatory adjustments, infrastructure investments, and economic reforms. While a direct billion-euro package was not mentioned, these measures indicate efforts to support the said sectors and alleviate pressures on the construction industry.
- To guarantee the successful execution of the infrastructure projects, the Association of the Construction Industry Rhineland-Palatinate calls for an employment policy that addresses the current capacity shortage within the industry.
- In addition to the government's infrastructure expenditure, a business-friendly finance policy geared towards housing sector investment is needed to stimulate private sector involvement and address the dwindling supply in the housing market.
