There is a lack of affordable housing, schools, and preschools. These are typical jobs for project developers in collaboration with construction trades. But contracts in the sector have abruptly fallen off. “To survive in the construction industry, you’ll now have to restructure — regardless of what role you play,” says Roland Sitzberger, Partner at Porsche Consulting.
When the construction industry falters in the wake of a boom, a domino effect typically sets in: While the first companies are starting to slump, other market players are still filling their order books from the boom phase. The companies at the very front, which are affected early on, include the project developers. Industry experts anticipate a major market shakeout here. After the developers, it will be the trades’ turn if they don’t take prompt action.
A completely new and unusual mindset — for the construction sector — is needed, namely, a focus on customer needs instead of individual success. Coordination, collaboration, and providing solid overall performance “from a single source” are competitive advantages that can save the day, particularly in hard times. It is advisable to integrate the trades into the preliminary planning stages. The ideal set-up here includes shared office space with interdisciplinary teams. This initial collaboration is advantageous for all concerned. Consortiums can be formed early on that work hand in hand until the owner receives the keys — with the aim of shared overall success.