The rise in energy prices has an "immediate" impact on construction companies.

Construction equipment and transport vehicles are heavy consumers, explains Matthieu Laclau, managing director at CarrionTP. "Trucks use about 40 liters per hour," excavators about 100, he says.

While surveying the equipment parked in his company's warehouse in Vaulx-en-Velin (Rhône), he stops in front of some electric machines and smiles. "Fortunately we have some, but it's not developed enough yet."

This company of 100 employees needs approximately 4.000 liters of fuel per month. With prices rising by 30 to 50% since the start of the war in the Middle East, "the impact is immediate," Mr. Laclau points out. "Every time we produce fuel, it affects our profitability."

To avoid being overwhelmed, Carrion TP is "getting organized." Employees are encouraged to carpool using company vehicles, including several vans. This also means "turning off machines as much as possible and reducing the number of machines on construction sites whenever feasible."

More economical practices are recommended, such as eco-driving training. But in the long term, "we will have no other choice but to increase our prices. Something we are always a little afraid to do," laments Mr. Laclau.

The company has not had access to state aid, which at this stage is reserved for smaller businesses. But it "doesn't want it," the managing director asserts.

"The more aid there is, the less public money there is. The less public money there is, the fewer construction projects there are," he argues, while 60% of the company's contracts come from local authorities.

He would prefer "a slightly more stable framework, less payroll tax".

Anticipation

State aid announced in early April for non-road diesel, for companies with fewer than 15 employees, "is a step in the right direction," says Olivier Brunet, Secretary General of the Federation of Building and Public Works Companies of the Rhône.

The impact isn't limited to non-road diesel: fuel prices in general are affected, and indirectly, so are the prices of materials, "by 5 to 35%, particularly for bituminous materials," he points out. There's also "a kind of general wait-and-see attitude" that's leaving some projects on hold.

At CarrionTP, which notably installs PVC pipes, the surge in plastic prices is also putting a strain on cash flow.

The establishment of a materials price observatory, promised by the government, "should allow for greater transparency, anticipation, and visibility," hopes Anne-Laure Le Gavrian, the federation's general delegate. "We expect this to be followed by concrete action" in the event of supplier price gouging, she adds.

The federation welcomes the government circular reminding them of the possibility of modifying a contract to take into account the increase in the cost of materials, even in the absence of a dedicated clause.

Economy Minister Roland Lescure also announced on Monday evening that the "flash fuel loan", which allows lending sums of 5.000 to 50.000 euros at a rate of 3,8%, without requiring a guarantee, to certain very small businesses (TPEs) and small and medium-sized enterprises (SMEs), would be extended to the construction sector.

For Matthieu Laclau, stability comes from "more energy sovereignty". The construction sector is the largest employer in France: "if we want jobs, we will have to protect ourselves, not through subsidies but through the ability to be a little more sovereign in the way we build", he believes.

Illustrative image of the article via Depositphotos.com.