Construction materials activity in 2021 close to pre-crisis levels

The results for the year 2021 show a return to the activity levels of 2019, with a production increase expected to + 10% at the end of December 2021 (vs 2020) for aggregates and for ready-mixed concrete (ready-mixed concrete). ), bringing volumes to 360 million tonnes for aggregates and 40,7 million m3 for ready-mixed concrete. Beyond the figures, the profession, during this period of health crisis, has shown all its capacity for resilience in the face of market tensions by ensuring the supply chains of its customers on construction sites.

The summer air hole will have been fleeting

According to the first results of the October monthly survey, aggregate volumes would have increased by + 2,1% compared to September (CVS-CJO data). Over the last three known months, activity has gained + 0,6% compared to the previous three months but is still -1,6% below that of 2019. Cumulatively over the ten months of 2021, the production of aggregates posted an increase of + 12,3%, a level just below that of 2019 (-0,5%).

Regarding ready-mixed concrete, the increase recorded in October (+ 2,2%) places deliveries above those of October 2020 but also those of October 2019 (+ 3,3%). During the last quarter, volumes have almost stopped falling compared to previous months and are up + 0,7% compared to the same period of 2019. In total, cumulatively over ten months, ready-mixed concrete production was up + 13,1%, again close to 2019 levels (-0,4%).

The UNICEM materials indicator, which summarizes the activity of a basket of materials from the mineral sector, confirms these trends. After a third quarter down by -8,1% over one year, the month of October recovered by + 4,2%, leaving the ten-month cumulative delivery of materials at + 11,5% over one year, i.e. + 1,1% above 2019.

Building: a climate that will remain favorable

The structural work order books still show very high levels even if supply difficulties and labor shortages are affecting the smooth running of the works. On the new construction side, while it is true that the non-residential segment is struggling to recover from the shock induced by the health crisis, activity in the residential segment has for its part strengthened significantly. Given the pace of increase in permits observed in 2021, this constructive dynamic could continue, particularly in individual housing. Indeed, in the collective, the structural brakes (shortage of land, local brakes, problem of acceptability, urban planning procedures, etc.) seem to restrain the rebound and the implementation of new projects despite strong demand. real estate expressed by households. Certain support measures, such as the announcement of the State taking over the exemption from property tax for social landlords, could, it is true, awaken the ambitions of the “builder mayors”, assuming however that they can materialize. In this context, the total number of housing starts could ultimately stabilize around the levels observed in 2021, fueling a need for ready-mixed concrete close to the volumes delivered this year.

Public works: acceleration expected

After the rebound in the first half of the year linked to the completion of works in progress and / or stored during the confinement period, activity in public works is slowing down. The level of order books is struggling to replenish even if the recovery is under way. The realization of the recovery plan projects, coupled with a strengthening of calls for tenders and investments from municipalities (whose treasuries are in good shape) should support activity a little more in 2022, especially in the second half of the year, fueling facto the demand for aggregates. For the time being, public works companies are subject to the same pressures on supply (recruitment difficulties and rising production costs) and even if their level of activity is far from having returned to that of before the crisis and that the amount of calls for tenders is currently low, professionals remain rather confident for the coming year.

2021 estimates and 2022 forecasts

The cyclical profile for the year 2021 will have finally been quite “heckled”, between the catching-up movements of activity, the rebounds and the basic effects linked to the deconfinements and the summer air gap. To this were added tensions over supply which, in a context of global economic recovery, weighed on the supply and the smooth running of building and public works projects. Despite everything, the year should end with an increase in activity of + 10% in aggregates and ready-mixed concrete, leaving the volumes produced at levels close to those before the crisis.

Apart from the uncertainties linked to the health context and to the evolution of supply tensions and their impacts, our scenario for 2022 favors the maintenance of a still strong demand for materials: it would be at the level of that of 2021 for the BPE, even slightly up for aggregates (+ 1%). The constructive dynamic would continue to feed ready-mixed concrete needs while the aggregates market would be supported by the gradual strengthening of public works activity, via the scaling up of the Recovery Plan and the return of local authority projects (initiation of the new electoral cycle).

Beyond the figures, the mineral sector is at the service of the economy of the territories ...

While many installation companies have found themselves faced with serious shortages of certain materials, companies in the sector have never ceased to supply construction sites.

Indeed, the mineral construction materials sector is a 100% local activity, which extracts, transforms, transports and uses materials within a restricted geographical area.

The industrial sites of UNICEM member companies, particularly quarries and ready-mixed concrete production units, are spread across the country, as close as possible to their customers. This territorial network favors short circuits with high reactivity, rapidity of deliveries and immediate adaptation to demand.

This industrial network, generating jobs that cannot be relocated, and located in the heart of the regions, has proven its effectiveness, ”emphasizes Alain Boisselon.

... the industry knows how to be agile ...

REP: an eco-organization dedicated to inert waste

As part of the anti-waste law for a circular economy (AGEC), the extended producer responsibility (REP) regime is extended to construction products and materials in the building sector as of January 1, 2022. In order to respond to this new orientation, the professional unions (FIB, Routes de France, SFIC and SNBPE, UNPG - both members of UNICEM) have created and participate in the shareholding of an eco-organization, ECOMINERO, for the products of mineral construction generating inert waste. ECOMINERO created, by and for manufacturers of construction products or materials of mineral origin, aims to simplify the life of companies, so that they fulfill their obligations arising from the implementation of the EPR, and fully fulfill the recycling targets set by the AGEC law.

... and resolutely commits to decarbonization

RE 2020: biased regulation

The profession is in favor of RE2020 in that it extends and strengthens RT2012. It obviously supports regulations that aim to lead construction materials on a “0 carbon” path by 2050 and push structures towards energy sobriety. However, the industry is firmly opposed to the simplified dynamic LCA calculation method, which defers the issue of CO2 destocking at the end of the structure's life to future generations and which will promote the use of biobased materials, many of which are will be imported, and will not materialize the ambitions of the public authorities to see buildings become carbon sinks. This imbalance will be to the detriment of local materials, which cannot be relocated, indefinitely recyclable and which participate in a true circular economy. To meet the objectives set by RE2020, "low carbon" concrete develops excellent performance, qualities of use and durability, while emitting less greenhouse gases. The sector's objective is to work with other construction materials to offer carbon-free structures.