According to Constructionbriefing, the Austria-based construction company Strabag has warned that there are still no signs of recovery in the residential construction market, and revealed its performance for the first quarter of 2024.

The company experienced a 2% increase in production volume in the first three months of the financial year (January to March) to EUR 3.44 billion (USD 3.73 billion).

Strabag recorded the highest growth in its main markets of Germany, Poland, and Romania. Production decreased in Austria due to the sharp decline in the residential market.

The company's order backlog as of March 31, 2024, was EUR 24.6 billion (USD 26.7 billion), representing a 5% increase compared to the end of 2023.

New projects included the construction of a shipping lock in Kriegenbrunn, Germany, the expansion of a rapid transit line in Toronto, Canada, and the construction of a bridge over the Oder River near Nędza, Poland.

The backlog grew the most in Germany, Poland, and the Middle East in a year-over-year comparison. Orders decreased in Austria and the United Kingdom due to the ongoing completion of large projects.

Klemens Haselsteiner, Strabag's CEO, stated:

"The trends observed in the previous year continued into the first quarter of 2024. The situation in individual markets remains challenging and there are still no signs of a reversal in residential construction.

Despite these developments, we have managed to increase our order backlog to EUR 24.6 billion compared to the end of 2023, giving us a solid foundation for the rest of the year. We expect to see a positive boost, especially from future projects in energy infrastructure and in reconstruction, conversion, and renovation.

The construction industry remains challenging in individual European markets. However, with the anticipated reductions in interest rates, the environment should gradually improve starting in the second half of 2024." (Photo: Dreamstime)