Improvement observed in the state of construction orders
The construction industry in Stuttgart, Germany, is experiencing an increase in order intake, primarily due to the growing demand in renewable energy infrastructure and major energy-related projects.
According to the Statistical State Office, the construction industry's order intake increased by 6.5% from January to April 2025 compared to the same period last year. This growth is evident in various sectors, with renewable energy firms, such as those involved in wind and geothermal projects, reporting strong order growth.
For instance, the Nordex Group, a leading wind turbine manufacturer, announced a significant rise in wind turbine orders (2.3 GW in Q2 2025 versus 1.27 GW in Q2 2024). This surge in demand, largely from Germany, reflects a broader expansion in construction related to renewable energy infrastructure.
Daldrup & Söhne AG, a geothermal energy specialist, secured large EU-wide contracts for drilling geothermal wells near Munich, close to Stuttgart. This contract, starting late 2025, is the largest in the company's history and points to extended construction activity ahead.
Other energy sector developments, such as hydropower plant modernization by companies like ANDRITZ, further bolster construction orders through contracts involving electromechanical installations, indicating renewed infrastructure demand in Germany’s energy sector.
Thomas Moeller, CEO of the Baden-Wuertemberg Construction Industry Association, expressed optimism about the outlook for the construction industry, stating that it is currently more favorable than it was last year. However, he emphasized the need for improvements in the framework conditions for residential construction and increased infrastructure investments.
While specific Stuttgart-focused orders are not detailed, Stuttgart’s position as a hub for mechanical engineering and construction companies implies they are participating in and affected by these broader energetic and environmental infrastructure trends.
Looking ahead, expectations for the rest of 2025 are that order intake will continue to grow or remain strong, supported by stable pricing and continued public and private investments in renewable energy and sustainable infrastructure. Ongoing tenders and permits for wind turbines and geothermal projects suggest a pipeline of upcoming contracts, which construction companies in Stuttgart, often active in mechanical and plant engineering connected to these sectors, are likely to benefit from.
Despite the positive outlook, it's important to note that a real trend reversal in residential construction has not yet been achieved, as the number of residential units approved for construction increased slightly by 1.7% compared to the previous year. Construction permits for residential construction will continue to remain at a low level.
For those interested in contacting the construction industry in Stuttgart, Wolfgang Leja can be reached at 0711 66601-131 and w.leja@our website.
[1] Nordex Group Q2 2025 Results [2] ANDRITZ Hydro Modernization Projects [3] Daldrup & Söhne AG Geothermal Contract Win
Economic and social policy regarding renewable energy and sustainable infrastructure is driving growth in Stuttgart's construction industry, as evidenced by the increased order intake in the sector. Finance from public and private investments is supporting this growth, with companies like Nordex Group, Daldrup & Söhne AG, and ANDRITZ securing significant orders in the wind, geothermal, and hydropower sectors.
