Brief 

If you are planning on working with Dutch firms in the construction sector, or run a construction business in the Netherlands, it is important to know the current Dutch construction industry trends.

 

Insight

 

Dutch Construction Industry Overview

Before the Covid-19 pandemic hit, the Dutch construction industry had been growing at a fast pace.

According to Business Wire, after an annual growth of 4.6% in 2019, the construction industry contracted by 0.8% in 2020, and output value decreased from 124.3 billion USD to 123.3 billion USD. In 2021, there was a rebound, mainly driven by civil engineering and residential construction.

The price of building materials grew from November 2020 to April 2021. This was because of shortages and supply chain disruptions due to the pandemic coupled with a growing demand for building materials. Subsequently, there were many delays and unforeseen increases in cost.

Note that one of the key economic drivers of the Dutch construction sector is exports of structures or parts of structures as well as prefabricated metal buildings.

Among the top construction exports, in 2020, towers and lattice masts made of steel or iron replaced pallets, box pallets and other wooden load boards. The same year, the Netherlands exported 2.8 billion euros worldwide, an increase of 37.4% from 2014.

 

Primary Sectors of the Dutch Construction Market
  • Commercial construction
  • Infrastructure construction
  • Energy and utilities construction
  • Industrial construction
  • Residential construction
  • Institutional construction

 

Current Construction Industry Trends

What construction industry trends can we expect in the coming years for the Netherlands? Here are a few.

 

1. Transport, Energy, & Utilities Growth Due to Government Support

The construction sector in the Netherlands is expected to grow between 2021 and 2026 thanks to increased state support from the government under the National Growth Fund.

Under this, the government will invest in the development and maintenance of transport infrastructure, utility projects, energy projects, and residential projects. The first round of funding will include 4 billion euros (4.6 billion USD) for ten projects in green hydrogen, railway, and education sectors.

 

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