The German wood industry is suffering from the construction crisis and the ongoing slump in consumption: sales fell again significantly in 2024. The German Wood Industry Association (HDH) is calling on the future federal government to stimulate housing construction with targeted and short-term measures - otherwise there is a risk of a long-lasting crisis.
Denny Ohnesorge, HDH's managing director.
Companies in the German wood industry recorded a significant decline in sales in 2024 compared to the previous year, by 7.9 percent to 37 billion euros. The wood-based materials industry (-9 percent) and the construction-related sector of the wood industry (-8.6 percent) were particularly affected. But the furniture industry (-7.4 percent), the sawmill industry (-6.5 percent) and the wood packaging industry (-5.2 percent) also suffered losses. The furniture industry has the largest share of industry sales with 44 percent or 16.4 billion euros, followed by the construction-related sector and the supplier industry, which together account for 17.8 billion euros or 48 percent of sales.
'The drop in sales is a direct result of the weak construction industry, the growing bureaucratic burden and the ongoing uncertainty among consumers,' explains Denny Ohnesorge, HDH's managing director. The number of building permits fell drastically in 2024: in single- and two-family house construction, it fell by 19 percent, and in multi-family house construction by as much as 20 percent.
Employment figures in the wood industry were not unaffected by this development. The number of companies with 50 or more employees fell by an average of 2.8 percent in 2024, while the total number of employees fell by 4.4 percent.
Crisis expected to last until 2026
In view of this development, the HDH is calling for a decisive political turnaround to revive construction activity and thus also the wood industry. 'The new federal government must make housing construction a priority. Without a decisive turnaround, the crisis in the construction industry and thus also in the wood industry will drag on until 2026 and beyond,' warns Ohnesorge. 'We need a reduction in bureaucratic hurdles, a reliable funding policy and financial incentives for climate-friendly construction. Now we need clear decisions for a construction policy that, in particular, also secures the investments made in serial and modular construction over the last five years.'
About the HDH
The German Timber Industry Association (HDH) represents the economic, political and technical interests of the timber industry, which employs around 200,000 people and has a total turnover of around 53 billion euros. The spectrum extends across the entire value chain of wood: from the sawmill industry, industrial wood processing and the furniture industry to building with wood and the wood packaging industry. All the interests represented are united by the commitment to the natural and versatile material wood.
More information:
German Timber Industry Association (HDH)
[email protected]
www.holzindustrie.de