There is however beginning to be some positivity in the industry, particularly in the central European states. Signs of pickup in industrial activity and wider economic recovery are filtering through to construction markets, and confidence indicators are reaching higher levels. For the industry in general, access to financing has improved, although it is still felt to be a major barrier to expansion.

The hope is that with more stable political and economic situations following a difficult period, investor confidence will increase further, and there will be a return to pre-crisis economic conditions as a lot of work needs to be done to make up for the decline since 2007.

There is however significant disparity between different EU regions and member states. The countries hit hardest during the financial crisis have been those in the periphery of the Eurozone: Ireland, Portugal, Spain, and Greece. This is where the effects of decreased investment and poor access to financing have had the most severe effects.

In addition to this, post-bailout conditions of fiscal consolidation and public sector cuts have led to decreases in public investment and thus a further retrenchment of the construction industry. Data from Eurostat and the European Investment Bank looking at the period of the financial crisis and its aftermath shows that investment in construction as a percentage of GDP has dramatically decreased in these states and is beginning to stabilize at a much lower rate. Public investment has decreased from an EU average of 3.8% to 2.8% in this select group of countries.

This situation contrasts sharply with the greater stability of the industry in the central European states and has drastic long-term effects in terms of the implications for infrastructure and housing in these countries determined by lesser investment.

Overall, the story of the recent construction industry is a bleak one. The years 2007 to 2013 have seen a 17.4% reduction in value of the industry, representing a loss of €293 billion. In 2012, a decline of 4.9% in industry output was experienced, with overall EU GDP growing by 0.1%.

This means that the industry is lagging behind wider economic development and thus has an increasing market share to regain in the future. The decline has meant that employment in the industry is 2.1 million lower than 2007 figures, representing a loss of 15.7% of the workforce. This high unemployment in the industry is an acute problem, with the workforce suffering a 16.3% unemployment rate, compared to 9.4% for the wider labour force.

The European construction sector has been hit hard by the recent global economic and financial crises. Following a collapse in construction activity at the end of the last decade and to the beginning of this one, the industry as a whole continues to face difficult circumstances, with a general lack of financing and low investor confidence.

However, there are clear variations in the individual performance of member states and there is also evidence to suggest that the industry may have begun to turn a corner in some parts of the continent.