Geberit CEO expects construction industry to continue to shrink in 2024
Christian Buhl, CEO of the sanitary technology group Geberit $GEBN (+0.11%) predicts that the European construction industry will continue to shrink in 2024, particularly in the new construction sector.
In an interview with the NZZ, he emphasized that this represents one of the biggest slumps in new residential construction in Geberit's core markets in decades.
Although short-term predictions are difficult, Buhl emphasized the importance of a long-term perspective. Despite a decline in sales in 2023, Geberit has increased investments in production facilities in order to differentiate itself from competitors. Buhl emphasizes that the demand for sanitary products such as toilets will remain constant.
When asked about the cluster risk in Germany, which accounts for around 30% of Geberit's sales, Buhl explains that this risk is relative. When the market is going badly, one speaks of a cluster risk, but when market conditions are good, one does not speak of a cluster opportunity. He also emphasizes that Central Europe remains the most profitable market with the most attractive margins for the global sanitary industry.
So where is the German construction industry headed? What do you think?
LiKe aNd SubScriBe (lol)
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