Construction materials: The Senate refers the matter to the Competition Authority in response to soaring prices

In a statement, the commission explains that it “is asking the Authority to analyze the competitive functioning of upstream markets, particularly the most concentrated ones, as well as the relationships between the actors in the value chain, and to formulate recommendations where appropriate”.

A survey was requested on the construction materials market.

Senator Yves Bleunven (Centrist Union) from Morbihan wants to better understand the price-setting mechanisms in the construction materials sector.

He explains that he wants to “objectify the functioning of markets and, in this case, find solutions to a housing crisis that is severely impacting our fellow citizens in their life paths”.

Parliamentarians are also asking the Competition Authority to rule on the relevance of “creating a tool to monitor the production costs of construction materials”.

According to the Senate committee, such a system would provide greater visibility to the entire construction sector, which is facing high price volatility.

“Indeed, since the abandonment of the project announced by the government in 2023, no specific index exists to compensate for the lack of visibility of the sector in the face of the volatility of construction material prices,” the statement specifies.

Price increases that are undermining the recovery of the construction sector

The Economic Affairs Committee stresses that the “recent increases in the price of construction materials” come on top of “several upward waves suffered by the sector since the end of the health crisis” and weigh on “the ability of companies to contribute to the recovery of construction”.

At the end of March, French concrete manufacturers had already warned of the economic consequences of the war in the Middle East, particularly due to the increase in energy costs.

Several professional organizations in the building and materials sector had then called on public authorities to strengthen their vigilance on the evolution of prices.

The French Federation of Precast Concrete Manufacturers (FIB) had notably warned that the “inevitable increase” in costs linked to the war in the Middle East would have “direct repercussions on the overall cost of projects.” The organization also feared “the postponement of certain projects (...) in an already uncertain context for the entire sector.”

The French Building Federation (FFB) and the French Confederation of Craft and Small Construction Businesses (Capeb) are raising the alarm about price increases.

For its part, the French Building Federation (FFB), which brings together 50.000 members representing about two-thirds of the sector's turnover — more than 200 billion euros in 2024 — had denounced the fact that “building tradespeople and contractors are receiving warnings of rising material prices”, even though “the current situation is not that of 2022-2023” and that “the sector is not experiencing a shortage”.

The FFB is calling for the creation of a “public observatory for setting the price of building materials”.

At the beginning of April, the federation had already noted an increase of up to 35% on bituminous membranes used for waterproofing, as well as an increase of +20% on certain plastic products such as PVC and some polystyrene insulation, according to data transmitted to AFP.

The trade union for building tradespeople, Capeb, also indicates that 65% of the 2.600 members surveyed at the end of March had received notices or letters from their suppliers announcing price increases.

According to feedback from Capeb, price increases for materials "generally range between +2,5% and +20%", including for some materials less dependent on oil, such as wood.

Illustrative image of the article via Depositphotos.com.