2020 assessment and 2021 outlook for the French construction products market

The study also establishes a snapshot of the prospects for the French market for all products used in construction (shell, finishings and equipment) for 2021. The AIMCC also made its proposals for a smooth relaunch of the sector while discussing the major challenges of the year 2021.

2020: the construction sector is hit hard by the crisis

Overall, 2020 was marked by a significant and unpredictable drop in activity for the construction sector. Its scale is almost similar for building or public works, with a drop of around -15% in volume of activity. This decrease was strongly impacted by the first confinement and it eased during the second half of the year, allowing limited catching up.

A marked decline in activity for AIMCC manufacturers in 2020

The opinion survey conducted among member federations confirms these trends: 2020 is a year in decline. 90% of respondents experienced a decline in activity and, for 55% of respondents, the decline is equal to and greater than 7%. For only a third of respondents, the decrease was limited to between 0 and 3%. Nearly 10% of respondents are experiencing stability in the volume of activity in 2020.

In 2020, the volume of activity concerning products used in construction will have been as follows:

However, there are differences in the 3 main segments of AIMCC members:

Uncertain outlook for 2021

In a context of uncertainties, investment rates are relevant indicators for judging the situation for 2020 and considering the outlook for 2021. Between implementation of the local tax reform, waiting for a return to normal on the face of the health crisis and management of the social crisis, the outlook is uncertain to say the least.

After a -7,3% decline in household consumption expenditure in 2020, it should see an increase of + 5,7% in 2021. The unemployment rate should approach 11% on an annual average and consumer confidence. households will only be found if the arrival of the vaccine makes it possible to contain the pandemic. Interest rates are expected to stay at around -0,2%. However, it will be necessary to be vigilant on the degree of prudence of credit institutions, because the conditions for granting credit should remain more tense than before 2020. While 2020, the election year, promised to be less catastrophic for investment local than that of the two previous terms, the Covid-19 crisis is reshuffling the cards. Local authorities' revenues suffered a major setback in 2020 which will most likely continue in 2021. Support from local finances for a recovery and then a revival as well as a mobilization of all public actors are essential.

The construction sector anticipates growth in activity in 2021

For 2021, construction manufacturers remain cautious about the development of their activity. The figures recorded by the AIMCC survey of its members show that more than a third of respondents expect virtual stagnation, and more than 50% foresee a withdrawal, of which more than 25% estimate this decrease to be between -4% and -9%. The construction materials and equipment sector was impacted downwards compared to initial forecasts, like many other sectors of activity.

In 2021, the activity volume forecasts for products used in construction are as follows:

Prospects for professionals: finishing work, structural work, equipment manufacturers

For 60% of structural work professionals, the year 2021 will be stable. Note that 30% of organizations believe that the year 2021 will be up slightly. For the Second Work, the year 2021 is almost equally divided between decrease (32%), stability (31%) and increase (38%). For OEMs, the trend is clearly upward (80%). Only 20% of them foresee a slight drop in activity.

2021: the expectations of the construction sector for a targeted recovery towards sustainable and responsible investment

The contribution of the CSF (Strategic Sector Committee) Industries for Construction, led by the AIMCC, is focused on accelerating the recovery because it is a sine qua non for the success of the recovery.

The AIMCC mobilized during the first confinement to build the structural elements of the recovery, in order to maintain activity, essential to the sectors. Three priorities were identified on this occasion for a “resilient” recovery / relaunch: support for the most fragile sectors, relaunching the activity of French companies and accelerating environmental transformation.