As a professional working in the finishing industry, it's important to stay informed about developments in the construction and renovation of residential and commercial buildings. For these individuals, the Dutch Association of Finishing Contractors (NOA) has developed a Finishing Industry Monitor in collaboration with Buildsight. This monitor provides up-to-date market information and trend analyses, accessible at any time via a dashboard. The trend analysis from the second quarter indicates that significant investments will be made in the budget sector in the coming years. This includes education, healthcare, government, sports, and culture. These investments will therefore primarily focus on commercial construction. How will these developments impact the finishing sector? And what about the construction and renovation of private homes? We examine the latest construction and finishing developments and look ahead to the future.

Residential construction

We're starting with new residential construction. The decline in permits appears to be coming to an end. This will ultimately result in more new construction and therefore more work. However, we're still facing a significant shortage of personnel and materials, making it difficult to meet the future increase in demand.

2022 was a good year for home renovations. This was mainly due to rising energy prices. More and more people made their homes more sustainable to save energy. However, now that homes have been made more sustainable and because we are currently facing a crisis, people have become more cautious with their spending. Consumer confidence has fallen, and fewer people are moving due to high house prices. As a result, fewer homes are being renovated. This trend is expected to continue in 2024, but the number of renovations is expected to rise again in 2025.

Utility construction

Thanks to the investment in the budget sector, non-residential construction is expected to grow by 4% compared to 2022. The issuance of permits for offices and schools is also increasing slightly, and there is a greater need for high-quality, smaller offices. Conversely, the construction of industrial buildings is expected to decline in the coming years. Construction of shops and hotels is also declining due to the proliferation of online shopping and Airbnbs.

Many planned utility renovations are no longer going ahead. This is due to sharp increases in the cost of materials and personnel. The budgeted budget is no longer sufficient, and renovations are being postponed or even canceled. As a result, a decline is predicted for 2023 and 2024.

2025 and beyond

The hope is for an economic recovery of 2% in 2025. To achieve this, the economy will have to recover from the third quarter of 2024 onwards.

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