The CAPEB is demanding concrete and immediate measures to pull the building trades out of the crisis.

New construction saw the sharpest decline (-6%), while maintenance and renovation work has fallen by 1,5% over the past four quarters, a figure all the more worrying given that energy-efficient home renovations have also stagnated at -1,5%. Improvements in some indicators suggest a brighter outlook, but for now, the building trades are not benefiting. This situation should concern us all!

A sustained decline in activity in the third quarter of 2025

According to the latest economic report from CAPEB (Confederation of Craftspeople and Small Businesses in the Building Sector), the building trades saw their activity volume decline by 3,5% in the third quarter of 2025 compared to the same period last year. This third consecutive quarter of contraction confirms a persistent negative trend. All segments are affected: new construction remains the hardest hit, with a 6% year-on-year drop (after a 9% decline in the previous quarter). Maintenance and renovation, which includes small improvement and renovation projects, also continued its decline by 1,5% – the same rate as the previous quarter, a sign of a worrying stagnation in this market. In particular, energy renovation work on housing is not recovering: its volume fell again by 1,5%, reflecting the persistent sluggishness of the energy renovation sector. This widespread decline in activity is occurring despite the significant renovation needs of the housing stock.

Confidence is waning, order books are struggling

Confidence in the construction sector continues to decline. Although order books are up for the first time since early 2022, the balance of opinion remains negative across all segments of the industry. In other words, more tradespeople are experiencing a decrease than an increase in orders, demonstrating that the recovery has not yet begun. This trend directly impacts the morale of business owners, especially given the continued precarious financial situation of many small businesses (cash flow and margins under pressure).

On the consumer side, household confidence has collapsed. The instability of public aid and the constant changes in regulations have fueled a strong wait-and-see attitude: even with a high savings rate, households are postponing or cancelling their renovation projects due to a lack of confidence in the future and visibility on public policies.

A strategic housing policy that is still awaited

The CAPEB (Confederation of Craftspeople and Small Businesses in the Building Sector) denounces a glaring disconnect between the ambitious national targets for scaling up energy renovation and the reality of current public policies. In theory, France aims for a massive acceleration of energy renovations to meet its climate commitments. In practice, the government remains deaf to the warning signs issued by the industry: no decisive impetus has been provided to support tradespeople on the ground; quite the opposite, in fact.

“No more turning a blind eye”: CAPEB demands concrete and immediate measures

For over two years, CAPEB has been offering concrete and proven solutions to revive activity, particularly in renovation. These include simplifying RGE qualification through Validation of Acquired Experience (VAE), facilitating the use of Temporary Business Groups (GME) to allow tradespeople to join forces on large projects, and implementing a step-by-step energy renovation process tailored to individuals.

A firm appeal to the Government and Parliament to avoid getting bogged down.

It is unthinkable to allow a spiral of declining activity, loss of confidence and job destruction to take hold in the building trades, with nearly 40.000 jobs destroyed in the last year and a half.

The proposed budgets that include ending payroll exemptions for apprentices and a further revision of hiring incentives are detrimental to a key sector for integration and to the vitality of small businesses, as is the latest cut to funding for MaPrimeRénov'. The rejection, once again, of the €25.000 VAT exemption threshold for construction projects is completely inconsistent with the country's budgetary imperatives and with the necessary tax fairness that must prevail among businesses.

For Jean-Christophe Repon, President of CAPEB: “Sales of existing homes, mortgage lending, the inflation rate… many economic indicators are improving, and yet the building trades sector continues to decline. In this context, I urge the Government and members of Parliament to recognize the impact of their votes on the activity of small businesses that drive their communities and create jobs, and to make the right choices, setting aside partisan considerations. Our sector is at a turning point and could finally turn things around if the right decisions are made. The building trades are a vital segment of the construction industry that requires special attention. Don't turn a blind eye any longer! The proposals from CAPEB, which cost the State nothing, are still on the table.”

Illustrative image of the article via Depositphotos.com.