--- title: "Construction Industry 2023 – These are the Trends and Challenges" description: "What awaits the construction industry in 2023? What can we look forward to and what challenges will we face? These are the construction trends for 2023." url: "/en/blog/construction-industry-2023-trends-and-challenges-ahead" lang: en --- # Construction Industry 2023 – These are the Trends and Challenges What awaits the construction industry in 2023? What can we look forward to and what challenges will we face? These are the construction trends for 2023. ## Construction Industry – These are the Challenges for 2023 New year, new challenges. The construction industry is not only undergoing major transformation, but faces diverse challenges: The war situation in Ukraine leads, among other things, to enormous price increases in oil, gas, and material procurement; Corona still disrupts supply chains for the transport of raw materials; the necessity of digitalization in construction is increasingly coming into focus; and sustainability criteria ("Environmental, Social and Governance", or ESG in short) actively call for conscious action. One thing is certain: The construction industry must become even greener in 2023. Let's look at the trends for 2023 and show how construction companies can act in line with trends right now and how they can master current challenges. ## Sustainable Building for 2030 Climate Goals The fact that the construction industry is increasingly opening up to sustainability and sustainable building is good news. However, there is still much to be done to achieve the 2030 climate goals. Building processes need to be rethought, material procurement optimized, and supply chains made emission-free. The solar industry is expected to experience significant growth – Germany realized around 60 GW of PV systems in 2021. Habeck's Easter package stipulates that Germany must expand PV capacities to 215 GW by 2030. To achieve this, land must be created and approval procedures significantly shortened. This requires cooperation among all stakeholders to implement these measures profitably. ## Sustainability and Transparent Processes at klarx For [**the construction machinery in our logistics centers**](/de/blog/das-logistikzentrum-von-klarx/), we not only manage the transports ourselves; the machines are also equipped with intelligent telemetry units that enable a transparent rental process: Information about the exact use of the machine or consumption of our climate-neutral diesel is recorded and evaluated – for sustainable and cost-saving use on the construction site. Reliable delivery can be tracked using GPS tracking, ensuring planned construction projects are secured. [Read now: klarx and Sustainability](/en/sustainability) ### More Sustainability in the Construction Industry Thanks to ESG Criteria By 2050, Europe should be climate-neutral. The construction industry has considerable catching up to do in this regard. Therefore, 2022 will once again focus on so-called ESG criteria, which can be integrated into all construction phases. ESG stands for Environmental, Social and Governance and comprises sustainability-related provisions that should provide guidance toward greater environmental awareness. ## The ESG Criteria But what do these criteria mean for the construction industry? Non-compliance not only has consequences for the environment, but also for the company itself: More and more investors pay attention to companies' sustainability strategies – non-compliance could in the future mean that no investors are attracted and thus no financial support exists for the company. Additionally: Those who invest in "greener building" can ultimately generate more revenue: Renting construction machinery instead of buying, using natural raw materials or recyclable materials are just a few points that can contribute. ## Implementing Sustainability in Your Company – Here's How! For the reasons mentioned above, it is important to take the issue of sustainability seriously and give it space. With simple measures and with ESG in mind, you can make your company more sustainable today: - Offset CO2 emissions through a partner (e.g., climate partner) - Sustainable employer branding (e.g., GOTS-certified clothing) - Resource-conserving work practices (either ventilate or heat, waste separation, …) - Digital instead of analog structures (goodbye to paperwork!) - Invest in climate projects - Sustainable business practices on the construction site (starting with digital planning and efficient operation of machinery on-site) ## Enormous Price Increases and Supply Shortages The war that broke out in Ukraine in early 2022 brings about changes in the construction industry, among other things. The generally rising inflation rate leads to price increases in material procurement and higher logistics costs due to skyrocketing oil and gas prices. Uncertainties at the global economic level are also reflected in financial markets, so capital procurement for construction projects is significantly affected. Building permits for residential units fell in August 2022 compared to the same month the previous year by 9.4% ([Source](https://www.destatis.de/DE/Presse/Pressemitteilungen/2022/10/PD22_446_3111.html)), many construction projects are being cancelled or postponed. The forecasts for 2023 currently look concerning. On December 6, 2022, the [Central Association of German Construction Industry (ZDB)](https://www.zdb.de/meldungen/verband-erwartet-delle-in-der-baukonjunktur-umsatzrueckgang-real-fuer-2022-von-55-und-fuer-2023-von-7-prognostiziert) announced its assessments: Revenue in main construction is expected to decline by 7%. ## Corona in the Construction Industry – Familiar Challenges In 2023, shortages in the delivery of raw materials and building materials caused by the Corona crisis in early 2020 are still expected. Additionally, the first lockdown and short-time work continue to have consequences. Due to the previously mentioned consequences of the war in Ukraine, delivery shortages and difficulties in providing materials continue. No improvement is currently in sight. ## Software Solutions in the Construction Industry 2023 is (once again) the year of advancing digitalization in the construction industry. [Digital solutions](/en/software) not only save enormous amounts of time but also support the aspect of sustainability. Transparent and efficient processes create shorter communication channels, resources can be deployed elsewhere, and the construction process is ultimately accelerated. More and more companies are recognizing this major advantage and reorganizing their own construction management: Digital procurement of rental machinery, documentation, and billing pave the way to a paperless construction site. Communication by phone is increasingly being replaced by apps or text messages. [The software solutions](/en/software/klarxmanager) bring above all one thing: cost-effective, faster, and easier handling for all construction processes. [Discover klarx Software](/en/software) ## Digital Rental Experience with klarx From inquiry through delivery to release and pickup: With our digital solutions, we guarantee the perfect rental experience and the easiest way to rent construction machinery. Our [App](/de/blog/klarx-launcht-eigene-app/) and our [**klarxMANAGER**](/manager) enable you to save enormous amounts of time and simplify communication – from inquiry to pickup. Start your digital rental experience with klarx today and rent a construction machine. [Send Rental Request Now](/en/mieten) ## Get Digital with klarx In summary, it can be said that the overall economic situation has deteriorated since early 2022. The energy crisis, inflation, and associated supply shortages and high price increases present the construction industry with new challenges. On the other hand, progress in digitalization and [sustainability measures](/en/sustainability) are coming into focus. Anyone who doesn't get on board with sustainability, [digitalization](/en/software/klarxmanager), or AI in the construction industry will definitely come up short. Software solutions like the klarxMANAGER, which we presented at bauma 2022, are right at the forefront. With the klarxMANAGER, renting construction machinery can be handled in just a few seconds, with complete transparency and easy usability. Those who want reliable machinery rental, time-saving processes, and digital solutions are in good hands with klarx. Use our software solution and book directly from the construction site, benefit from digital handover protocols and logistics notifications. If you would like to learn more,