On Wednesday morning, Roland Kuhn, President of the Federation of Luxembourg Construction Companies, discussed the current state of the construction industry with our colleagues from RTL Radio.
Kuhn emphasised that now is an ideal time to invest in or start a construction project, while describing the situation in the sector as "disastrous." He noted that the housing market has practically collapsed, with only one-eighth of planned or under-construction properties (VEFA) being realised. In 2023, the number of notary deeds dropped by 87%, and construction debris was reduced by about half.
According to Kuhn, prices are "catastrophically" low, making it a good time to invest, as "it won't get any cheaper." However, he pointed out that there are insufficient tenders available. Both the state and municipalities are not issuing enough tenders despite having the budget for them. Kuhn also urged private individuals to take advantage of the current conditions to realise their projects.
The construction sector is hopeful for improvement in the latter half of the year. While they appreciate recent government measures, Kuhn indicated that these have not yet had a significant impact. Crisis-related short-time work no longer applies, with Kuhn noting that there was little demand for partial unemployment anyway as companies "wanted to work." The construction industry employs 20,000 people, with an additional 60,000 in related trades. These people need to be kept employed, and that can only happen if there are orders, Kuhn stated.
Collective leave is "extremely important"
In response to Minister of Labour Georges Mischo's recent comments questioning the relevance of collective leave, Kuhn defended the practice. He stated that collective leave, as regulated by the collective agreement, "works extremely well" and is essential for small businesses that rely on synchronised time off.
Kuhn acknowledged the potential benefits of adjusting work hours to enhance productivity and worker health, suggesting a schedule of nine hours per day in summer and seven hours in winter.
