Study Back to Profitability: “Anyone who believes that growth will soon return for everyone is mistaken.” Interview with Dr. Constantin Greiner

Munich Strategy’s study makes one thing clear: The window industry remains under significant pressure. Revenues and earnings have declined considerably in recent years, while rising costs and a challenging market environment are putting additional strain on companies. A rapid return to previous market volumes is not to be expected.

In an interview with GLASWELT Editor-in-Chief Daniel Mund, Dr. Constantin Greiner, construction industry expert at Munich Strategy, assesses the current situation. Here is a preview with three questions from the interview.

“This is not a cycle – it’s a loss of substance.”

Mr. Greiner, why is the situation so serious?

“Among the window industry companies we analyzed, average EBITDA has declined by around 5 percentage points over the past three years, while revenue has fallen by around 10%. In absolute terms, this means that only half of the profit remains,” explains Dr. Greiner. For many companies, the situation is even more severe, as they were already operating on low margins before the crisis.

Why are traditional innovation strategies currently falling short?

“May I turn that question around and ask you: Which companies in the window industry are truly innovative?” Greiner asks critically. “The vitality rate – the share of revenue generated with new end products – is significantly lower in this industry than in other building supply sectors. What the industry urgently needs are bold frontrunners that drive genuine innovation rather than relying on old playbooks.”

What are the biggest cost drivers?

“In many companies, revenues have declined sharply, yet personnel costs are still at the same level as before the market downturn,” says Greiner. “At the same time, the project business is becoming more challenging: margins are declining while capital requirements are increasing. Companies now need to decide whether to strengthen their competitiveness through higher productivity and strategic cost reductions – or let the market decide for them.”

Revenue and earnings development 2022 bis 2024

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Back to Profitability: Take action instead of waiting for the market

Our study Back to Profitability shows why simply hoping for a market recovery is not enough for companies in the window industry. In our view, residential construction will recover, but market volume will remain structurally below pre-2022 levels. This matches the wording and conclusion of the English study, which expects the market to remain structurally 15–20% smaller than before 2022.

Using case studies from adjacent industries, the study demonstrates which levers companies can use to improve profitability independently of market growth – from overhead restructuring and more rigorous margin management to process and productivity optimization. The case studies presented achieved earnings improvements of up to €6 million.

Would you like to learn more about the concrete approaches window industry companies can take to optimize their cost and earnings structures and sustainably strengthen their competitiveness?

Our study “Back to Profitability: How window industry companies can achieve above-average margins despite ongoing market turbulence” is available upon request via email. Please feel free to contact us – we will be happy to send you the study or discuss the findings with you personally.

The full interview by GLASWELT Editor-in-Chief Daniel Mund with Dr. Constantin Greiner will be published in the September issue of GLASWELT: www.glaswelt.de

Dr. Constantin Greiner at the VDMA: Construction Markets Between Structural Demand and Geopolitical Disruption
Presentation

Report: European Construction Quarterly | Q1 2026
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