The German timber industry is suffering from the construction crisis and a persistent slump in consumption: sales fell significantly again in 2024. The Federation of the German Timber Industry (HDH) is therefore calling on the future German government to stimulate residential construction with targeted and short-term measures – otherwise there is a risk of a long-lasting crisis.

In 2024, companies in the German timber industry recorded a significant year-on-year decline in turnover of 7.9% to EUR 37 billion. The wood-based materials industry (-9%) and the construction-related sector of the timber industry (-8.6%) were particularly affected. However, 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 accounted for the largest share of industry turnover with 44% or EUR 16.4 billion, followed by the construction-related sector and the supplier industry, which together accounted for EUR 17.8 billion or 48% of turnover.

“The decline in sales is a direct consequence of the weak construction industry, the growing bureaucratic burden and the continuing uncertainty among consumers,” explains Denny Ohnesorge, HDH 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 timber industry were not unaffected by this development. The number of companies with 50 or more employees fell by 2.8% on average in 2024, while the total number of employees fell by 4.4%.

In view of this development, the HDH is calling for a decisive political turnaround in order to revive construction activity and thus also the timber industry. “The new federal government must make housing construction a priority. Without a decisive turnaround, the crisis in the construction industry and therefore also in the timber industry will drag on into 2026,” warns Ohnesorge. “We need a reduction in bureaucratic hurdles, a reliable funding policy and financial incentives for climate-friendly construction. We now need to set a clear course for a construction policy that safeguards the investments made in serial and modular construction over the last five years in particular.”