The construction industry is facing complex challenges at the start of 2025: Rising interest rates, a shortage of skilled workers and volatile material prices are weighing on the sector. However, there are also numerous positive signs. In particular, digitalization, sustainability and new technologies such as artificial intelligence (AI) open up promising prospects – provided the industry actively seizes the opportunities.
Positive impetus despite difficult conditions
The economic challenges of recent years, including rising interest rates, a shortage of skilled workers and volatile material prices, have hit the construction industry hard. However, there are also rays of hope: according to a recent study by Horváth, an increase in turnover of almost 4% is expected in Austria in 2025. Similarly, there has been a slight upturn in incoming orders in Germany since mid-2024. In Switzerland, construction activity remains at a high level despite a slight decline.
On the other hand, there is unfortunately an increasing number of insolvencies. At the moment, they are mainly affecting smaller companies and SMEs. This is likely to continue for some time yet.
“We are observing that the shock paralysis in the industry is easing and investments are being released again,” emphasizes Ruth Schiffmann. “That shows: People have adjusted to the changed situation and are ready to position themselves for the future. However, we are still particularly concerned about small to medium-sized companies.”
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Digitalization as the linchpin
Digitalization is not a new topic for many construction companies, but its implementation is often difficult, especially for small businesses. Yet it is precisely these small companies, which make up 90% of the industry, that are the key to successful transformation.
This is where NEVARIS comes in and offers solutions with low entry barriers. One example is the freemium version of the 123onsite product, which allows small companies to use basic functions free of charge. “Construction companies should be able to invest their time where their value creation takes place: in the implementation on the construction site,” explains Schiffmann. And he continues: “It’s about giving companies the tools they need to make their work easier without overburdening them,” says Schiffmann. “With 123onsite, small companies can make their processes more efficient and concentrate better on their core tasks.”
Increasing productivity: focus on automation
Productivity in the construction industry has only developed slowly in recent decades. One reason for this is the large number of manual processes that take up valuable working time. Tools such as 123onsite help to automate these processes.
For example, site managers can use the software to create daily reports, document working times and record deviations in real time. This significantly reduces the administrative workload and at the same time ensures greater transparency on the construction site.
“We cannot afford to give away productivity potential,” warns Schiffmann. “The aim must be to deploy skilled workers where their knowledge and intelligence are needed – and not for repetitive tasks.”
Artificial intelligence: opportunities and risks
AI offers enormous potential for optimizing construction processes and using data efficiently. Nevertheless, Schiffmann urges caution: “AI will change the industry in the long term, but we need to clarify how existing data is handled and who is allowed to use it and for what purpose. Only if we approach this ethically and trustworthily can we create real added value.” 123onsite launched its AI-supported chatbot in 2024. It helps to quickly find help with questions about software usage. In the interview Product Manager David Kuennen explains what is important when it comes to AI features for the construction industry.
Outlook: Into the future with courage and innovation
In 2025, the construction industry has the potential to be a driving force for economic progress and social goals. “It takes courage to break new ground,” emphasizes Schiffmann. “But it is precisely in times of crisis that you can see who is prepared to set the course for the future.”
With solutions like 123onsiteswhich enable low-threshold entry into digitalization, small companies also have the opportunity to strengthen their position and contribute to the sustainable transformation of the industry.
