Published on 6/27/2026
The Building Materials Sector Union in Germany warned of a crisis it described as “historic,” noting that it affects most companies supplying supplies to the construction and civil engineering industries, in light of a sharp decline in demand for building materials.
The head of the German Federation of Building Materials, Stones and Soils, Dominique von Aachten, said that cement consumption in Germany, as well as in other European countries such as France, has returned to the levels it was before World War II.
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Von Aachten, who also holds the position of CEO of Heidelberg Materials, added that the conditions of the building materials sector “declined sharply” over the past years, explaining that “cement consumption in Germany is currently lower by about 30% compared to its level in 2020. It is no longer just a recession, but rather a state of economic contraction.”
High interest and construction costs
Von Aachten attributed this decline to several factors, most notably the rise in interest rates and the rise in construction costs and related services, which led to a slowdown in housing construction, as well as a decline in investments in public infrastructure projects and industrial and administrative buildings.
He pointed out that local demand is still weak, saying: “The housing construction sector is still suffering,” explaining that despite the recent increase in the number of building permits by about 10%, it takes several months to start implementing projects.
Regarding infrastructure projects, von Aachten said that the German government announced the allocation of funds from the special fund to support investments, but the impact of this step has not yet appeared on the ground.
He added: “The good news is that billions are already included in the plans, and are supposed to be reflected in the increase in construction activity starting from the second half of this year,” expressing his hope that this will contribute to alleviating the pressures facing the building materials sector and restoring part of its activity during the coming months.
Cement consumption is one of the most prominent indicators of the activity of the construction sector and investment in infrastructure, as the International Energy Agency (IEA) confirms that the demand for cement is directly related to the volume of spending on housing projects, roads and industrial facilities.
