Construction professionals already under pressure due to rising costs linked to the conflict in the Middle East

A sector already weakened by a new crisis

The war in the Middle East is beginning to have a tangible impact on the construction sector in France, particularly on already vulnerable home improvement tradespeople. The first direct consequence is the surge in fuel prices, especially for non-road diesel (GNR), which is essential for operating construction equipment.

"Our craftsmen select their sites, think about their travel, carpool. Non-road diesel has doubled, it quickly becomes unprofitable to work at that price on sites with quotes signed at the previous prices," explains Jean-Christophe Repon, president of the building craftsmen's union, the Capeb.

According to a survey of 2.600 members of the Capeb (Confederation of Craftspeople in the Building Sector) published on Friday, 56% of building tradespeople report being impacted by the increase in the price of non-road diesel (GNR). Furthermore, 65% of them have received notices or letters from their suppliers announcing price increases for building materials.

The French Building Federation (FFB) shares similar concerns. Laurent Beaugiraud, the new president of the Housing Division, notes that some suppliers are already starting to renegotiate their prices upwards, in a context of tension on the energy and raw materials markets.

The products most affected could be petroleum-based materials, such as bituminous products, polystyrene and other derivatives, but also metals like copper and aluminum, as well as all energy-intensive materials. Christophe Boucaux, general delegate of this federation of property developers and builders, clarified this during a press conference on Thursday.

Rising costs with immediate repercussions for businesses

According to feedback from the field conducted by Capeb, price increases for building materials "generally range between +2,5% and +20%". Notably, these increases also affect materials that are seemingly less dependent on oil, such as wood.

"There is sometimes glue and binders, therefore petroleum derivatives, in wood, but it is still troubling," emphasizes Jean-Christophe Repon.

Faced with these developments, the president of the Capeb denounces a lack of support for the sector: "We have the feeling of unjustified price increases and we see support measures for fishermen, farmers, but nothing for construction sites."

Is this the crisis that's one too many?

For construction professionals in France, the situation is becoming critical. Jean-Christophe Repon believes this is "the final straw" for a sector already weakened for three years and disrupted at the beginning of the year by numerous severe weather events across the country. Faced with mounting difficulties, the Capeb (Confederation of Craftspeople and Small Construction Businesses) reports "sensitive accounts," growing "resignation and distress" among its members, and announces the launch of a crisis unit dedicated to mental health.

The French Building Federation is also warning of the risks to the recovery of the new housing market. This recovery had "been confirmed in January and February, but we don't yet know the impact of the war," stated Laurent Beaugiraud.

In this inflationary context, professionals are finally worried about a further rise in interest rates, which could further weigh on household purchasing power and further slow down the momentum of housing construction in France.

Illustrative image of the article via Depositphotos.com.