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German Tiefbau Sector Sees Capacity Recovery as Hochbau Struggles Persist

Tiefbau utilization climbs to 72.6% in March, with forecasts of further growth, while Hochbau faces continued order shortages and low capacity levels.

Overview

  • Tiefbau capacity utilization in Germany increased by 2.5 percentage points to 72.6% in March 2025, according to the Münchner Ifo-Institut.
  • Experts predict Tiefbau utilization could reach or exceed 80% within two years, supported by the federal Infrastrukturfonds and long-term planning security.
  • The Hochbau sector remains under pressure, with capacity utilization at 62.1%, primarily due to a lack of residential construction orders.
  • The federal Infrastrukturfonds provides a 12-year funding plan aimed at stimulating infrastructure projects and encouraging investment in Tiefbau expansion.
  • Challenges persist in reallocating resources like labor and machinery between the sectors due to the specialized nature of Tiefbau work.

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