An investment that initially appears counterintuitive: While the new construction sector is suffering from a massive decline in demand and numerous building material manufacturers are reducing capacities, the roof tile producer Creaton is expanding its storage capacities in northern Germany. The expansion occurs at a time when the construction economy is struggling, building permits for residential construction have been declining for months, and the order situation for many roofing trade businesses is tight. The strategic reorientation of logistics by an established market leader in the roof tile segment raises fundamental questions: Is Creaton positioning itself as a crisis winner seeking to gain market share through infrastructure investments, or does the measure signal a differentiated view of regional demand patterns that goes beyond the current business cycle?
Logistics Expansion During Construction Crisis: Contradiction or Strategic Foresight?
The investment in additional storage capacity appears contradictory to the current market situation at first glance. German residential construction recorded a drastic decline in building permits of over 30 percent compared to the previous year in 2023, with multi-family residential construction as an important segment for roof renovations and new construction being particularly affected. Classically, manufacturers in such a phase would reduce inventory levels, adjust production capacities, and minimize costs. Creaton apparently pursues an opposite strategy that allows for multiple interpretations.
On the one hand, the storage expansion could aim at optimizing the distribution structure. Northern Germany is considered a region with comparatively stable demand in the renovation segment, particularly for high-quality ceramic roof tiles used in the energy-efficient modernization of single and two-family houses. Regional proximity to customer markets reduces transportation costs and shortens delivery times, an increasingly important competitive factor in times of volatile energy prices and rising logistics costs. For roofing trade businesses that require just-in-time deliveries to minimize warehouse space, regionally optimized availability can be decisive for material selection.
On the other hand, the measure indicates a long-term market assessment that goes beyond the current crisis cycle. Planners and product managers at manufacturers expect a recovery in construction activity in the medium term once the interest rate situation stabilizes and government support instruments take effect. Companies that expand their infrastructure during the crisis position themselves for the post-crisis phase, when capacity bottlenecks and long delivery times can again become competitive disadvantages. The investment could therefore be understood as an anti-cyclical strategy aimed at gaining market share after the trend reversal.
Market Structure in the Roof Tile Segment: Consolidation Accelerating
The market for ceramic roof tiles in Germany has been characterized by a consolidation process for years. A few large manufacturers such as Creaton, BMI/Braas, Erlus, and Röben dominate the market, while smaller regional producers face cost pressure. The manufacture of ceramic roof tiles is energy-intensive – firing temperatures exceeding 1,000 degrees Celsius require substantial amounts of natural gas, which in times of high energy prices significantly affects manufacturing costs. Manufacturers that can reduce their production costs through economies of scale, modern firing technology, or vertical integration gain ground against smaller competitors.
Creaton's storage expansion fits into this pattern: through investments in infrastructure – even in economically difficult phases – market leaders can consolidate their position and put smaller competitors under pressure, who cannot afford such measures. For building material traders, this means a shift in power relations: dealers who depend on regional availability and short delivery times will increasingly rely on manufacturers with optimized logistics structures. In the long term, this can lead to further market concentration, in which a few large suppliers dominate pricing and product availability.
Regional Demand Patterns: Northern Germany as a Growth Market?
The focus on northern Germany as a location for storage expansion allows conclusions about regional market expectations. While tiles traditionally dominate as roof coverings in southern German regions, the northern German market is structured more heterogeneously. Here, ceramic roof tiles compete more strongly with concrete roof tiles and other covering materials. Nevertheless, in recent years a growing demand for high-quality ceramic solutions has emerged, particularly in the energy-efficient renovation segment and in the upscale single and two-family house construction sector.
For architects and planners, regional availability plays an increasingly important role in material selection. In tenders, short delivery times are often required to meet construction schedules. A regionally optimized storage network can be the deciding factor in favor of a particular manufacturer. Furthermore, a decentralized storage structure enables better adaptation to regional product preferences: northern German builders tend to prefer different color tones and surface structures than southern German customers, making regionally differentiated inventory management economically sensible.
Moreover, the investment could indicate expectations of increased renovation activities. The building stock in northern Germany has a high proportion of single and two-family houses built between 1960 and 1990, where roof renovations will become increasingly necessary in the coming years. Energy requirements under the Building Energy Act (GEG) also drive demand for integrated solutions in which roof coverings and insulation are combined. Manufacturers that can score here through short delivery times and technical advice gain a competitive advantage over pure product providers.
Sustainability and Circular Economy: Requirements for Logistics Are Increasing
The growing importance of sustainability criteria in the construction industry also places new requirements on building material logistics. For ceramic roof tiles, the CO₂ balance of transportation plays an important role in life cycle assessments and environmental product declarations (EPD). A regionally optimized storage structure can shorten transportation distances and thus improve the overall balance. For planners who rely on EPD data as part of sustainability certifications such as DGNB or BNB, this can be a relevant decision criterion.
At the same time, the circular economy is gaining importance. Ceramic roof tiles are fundamentally durable and fully recyclable after demolition – broken or damaged tiles can be used as aggregate for concrete or as bulk material in road construction. A decentralized storage structure could in future also facilitate the return and processing of used material, similar to what Austrotherm already implements for XPS insulation materials. Manufacturers that create corresponding infrastructure early position themselves for future regulatory requirements on the circular economy in the construction sector.
Cost Structure and Pricing: Market Effects
The investment in storage capacity initially incurs fixed costs that are harder to amortize in a phase of weak demand. At the same time, optimized logistics enables long-term cost savings that can be passed on to customers – or stabilize margins if competitors face cost pressure. For building material traders and processors, price stability is an important criterion in supplier selection. Manufacturers that can offer reliable prices even in volatile market phases through efficient structures gain in attractiveness.
Price development for ceramic roof tiles has been heavily driven by energy costs in recent years. Firing processes require substantial amounts of natural gas, whose price sometimes multiplied between 2021 and 2023. Manufacturers that managed to stabilize their cost structure through long-term supply contracts or alternative energy sources had significant competitive advantages. Optimized logistics complements this strategy by reducing transportation costs and lowering inventory risks. For product managers at manufacturers, balancing storage costs with delivery capability is a key lever in competitive strategy.
Outlook: Post-Crisis Strategy or Miscalculation?
The storage expansion by Creaton in northern Germany can be interpreted as an anti-cyclical investment betting on medium-term market recovery and regional growth opportunities. Whether this strategy succeeds depends on several factors: the speed of economic recovery in the construction sector, the development of energy prices, the effectiveness of government support instruments, and the dynamics in the renovation market. If the construction crisis lasts longer than expected, the investment could become a burden. If, however, rapid recovery occurs, Creaton positions itself as a beneficiary with superior logistics infrastructure.
For architects, planners, and building material dealers, this development represents another facet of market differentiation: manufacturers that invest in infrastructure even in difficult times signal forward-thinking and financial stability. This can influence supplier selection, particularly for long-term projects or framework agreements. At the same time, consolidation in the market intensifies – smaller providers that cannot shoulder such investments face pressure. The development exemplifies how market leaders can consolidate their position even in times of crisis through strategic infrastructure investments, similar to what can be observed in other building material segments, for example with Holcim in the cement business or with Wienerberger in the brick sector.
