Prefabricated concrete in France: an "inevitable increase in costs" linked to the war in the Middle East

Rising costs in prefabricated concrete: the construction sector under pressure

The precast concrete industry is going through a period of significant economic turbulence. The cause: a marked increase in raw material and energy prices, which is weighing heavily on the entire construction sector in France.

"The precast concrete industry is facing a significant increase in the costs of its main inputs, including cement, steel, energy and fuels," said the French Federation of Precast Concrete Industries (FIB) on Wednesday.

Direct consequences on the cost of construction

According to the FIB, this increase in costs, linked in particular to the war in the Middle East, is directly impacting construction prices. The professional organization is warning of the risks to current and future projects.

She warns that this situation linked to the war in the Middle East will have "direct repercussions on the overall cost of the works" and fears "the postponement of some construction projects to a later date, in a context already uncertain for the entire sector".

Construction workers also weakened

Among tradespeople, the situation is also causing serious concern. The Confederation of Craft Trades and Small Building Enterprises (Capeb), the sector's main employers' organization, is calling for vigilance in the face of price increases.

For its part, the Confederation of Crafts and Small Building Enterprises (Capeb), the majority employers' organization in the building trades, warned industrialists and distributors in the sector about the consequences of a price increase on its members, "already weakened".

Inflation: Capeb calls for respect of commitments

In a still sensitive inflationary context, the Capeb recalls the importance of the commitments made during previous crises, in particular that linked to the war in Ukraine.

In its press release, the Capeb "already welcomes the actors who have respected the commitments made" during the inflationary crisis that followed the outbreak of the war in Ukraine, in particular "the notice period requested before any price increase".

Request to reactivate the building crisis committee

In light of the current situation, the organization is calling for action from public authorities to anticipate and regulate price changes.

But she is asking the government to "reactivate the interministerial crisis committee dedicated to construction" and created at that time, "to follow the evolution of material prices with the greatest attention".

A key sector of the economy on alert

The FIB highlights the economic importance of precast concrete in France, which represents thousands of jobs and a significant turnover.

The FIB, which claims to represent an activity employing 18.500 people, with a turnover excluding taxes and transport of just under 3 billion euros, is calling on the authorities to do what is necessary to "reduce the impact of these increases".

2026: Recovery prospects compromised

While the sector had hoped for an improvement in 2026, geopolitical uncertainties are weakening the prospects for recovery.

"While 2026 was shaping up to be a more favorable year for our sector, the context of the international crisis is generating great concern among our member companies, who are now seeing their hopes for recovery fading," warns Jacques Plattard, the president of this federation.

Illustrative image of the article via Depositphotos.com.