War in Ukraine and inflation: concern is mounting among craftsmen and managers of construction micro-businesses

They are 90% to note a negative impact on their activity. With inflation, the rise in the cost of energy and raw materials and the start of the crisis in Ukraine, there is a drop in activity for 54% of respondents, who indicate that consumers have noticed a brake on pleasure purchases.

The finding is the worst for construction professionals, particularly affected: 88% of respondents in this sector currently find themselves with purchase orders signed on the basis of raw material prices much lower than current prices, which leads to a massive drop in their margin and for some, in their remuneration…

To offset the impact of these increases and maintain their activity and the employment of their employees, the leaders reacted. They are 83% to have had to increase their selling prices (but slightly so as not to lose customers, also impacted) while lowering their margins (51% of them) and sometimes even lowering their remuneration to maintain their viability. work tool (26%). Finally, for those who have not yet taken any measures, 64% of them plan to act accordingly and 87% intend to increase their selling price in the coming weeks if the situation remains tense.

If the discount of 15 cents per liter on fuel prices is a first gesture, the Syndicat des Indépendants supports the construction of a real shield, protecting companies and respecting consumers.

For Marc Sanchez, Secretary General of SDI: “What this study teaches us is that it has become illusory to rely on growth alone to absorb the costs created during the health crisis within the required timeframes. Sustainable and comprehensive measures must be taken. Six million companies, mobilized and standing despite the COVID, have been suffering for two years and are asking the State for concrete measures so that neither inflation nor the Ukrainian crisis sign the cessation of their activity and lead to the loss of employment of their employees. These new devices would not cost the State a penny: - a legal extension of the PGE repayment period by at least two years - the renewal of the device for staggering the payment of the personal social charges of the business manager over 12 to 36 months. »

In addition, business failures have been consistently higher than in 2021 since the start of 2022, according to weekly statistics from the Banque de France. A clear increase has been noticed in the last week.

For Marc Sanchez, Secretary General of SDI: “We have been alerting the public authorities for several months to the sharp deterioration in the conditions for exercising their activity by small businesses. The fifth wave of Covid was followed by the war in Ukraine, which reinforced the restriction of consumption in physical shops according to our latest survey. The recovery from corporate failures is only the tip of the iceberg. Since the beginning of the year, we have seen a 35% increase in voluntary cessation of activity with nearly 76.000 business leaders who have given up on finding that they would have no support from the public authorities. as demonstrated by the Resilience Plan.

To preserve the future, we are asking for a legal extension of the PGE repayment period by at least two years as well as a new spread of social security and tax charges over 12 to 36 months. These measures do not cost the State anything and would even save it from having to significantly increase its default projections on PGEs when 45% of companies have not yet started repaying this loan. »

Main lessons

For Marc Sanchez, Secretary General of SDI: “Finally, in the name of the purchasing power on which the sustainability of their activities depends, many of the participants in our survey indicate that the reduction in social charges would be fully passed on to the net remuneration of their employees. Proof that their objective is to live from their work and not to ask for subsidies. Candidates for the presidential election should take inspiration from these recommendations, those who seem to ignore 98% of employers in France”.

EMP Reimbursement and Resilience Plan

They are now almost half (45%) to have taken steps or plan to do so, to obtain an extension of the repayment period of their PGE. However, it must be noted that the system currently in force in the extension of Bruno Le Maire's announcements of last January is totally unsuitable and devoid of interest: the company must be on the verge of bankruptcy, listed in red in the Bank of France and must therefore give up any investment in the short and medium term. As for the Resilience Plan, the observation is shared: 41% of the self-employed and VSEs believe that measures to increase household purchasing power would boost their activity against 31% who think the opposite.

The impact of the rise in raw materials on construction

Only for construction workers

Do you have current or future projects for which purchase orders have been signed on the basis of raw material prices that are much lower than your suppliers' current prices?

• Yes : 88%
• No : 12%

Do these projects represent what proportion of your forecast turnover for the first half of 1?

• Less than 10% : 7%
• From 10% to less than 20%: 16%
• From 20% to less than 30%: 23%
• From 30% to less than 40%: 18%
• From 40% to less than 50%: 13%
• From 50% to less than 60%: 9%
• From 60% to less than 70%: 5%
• From 70% to less than 80%: 2%
• From 80% and more: 7%

Financial health of the company

Does the current geopolitical situation worry you about your ability to continue your activity?

• Yes quite : 31%
• Yes, rather : 46%
• Not really : 18%
• No not at all : 4%
• I don't feel concerned: 1%

Are you currently facing cash flow problems within your company?

• Yes : 35%
• No : 65%

Comments

“No, but it will not be long with the fall in attendance in city centers. »

“We are currently paying the delay in urssaf contributions due to COVID, and now we are being taken from the little cash we have with the fuel increases. »

“I had to take back the PGE that I had put aside. »

Impact of price increase

Is the rise in energy prices (electricity, gas, gasoline) and/or raw materials having a negative impact on your business?

• Yes : 90%
• No : 10%

Comments

“We cannot pass on the drop in margins to our customers who are already suffering from the rise in raw materials. »

“It is increasingly difficult to validate quotes that explode. »

“The sharp rise in textile prices and the rise in all materials in general make our sales difficult because of their price. Lowering our margins as we did during the Covid period is not an option. In addition to that, our search for new customers is impacted by the increase in the price of gasoline, which prevents us from meeting new customers. »

Have you already taken measures to cushion or offset the consequences of these increases on your margin?

• Yes : 44%
• No : 56%

What measure(s) have you taken to compensate for the impact of the consequences of the rise in energy and/or material prices on your activity (several answers possible)?

• Increase in selling prices: 83%
• Drop in your margin: 51%
• Waiver of recruitment: 21%
• Dismissal: 5%
• Reduction of your remuneration: 26%
• other: 9%

Among the “Other” answers

“We cannot rule out layoffs, because a large number of our customers are opposed to a price increase. »

PGE debt

Have you contracted a PGE not yet reimbursed with your bank?

• Yes : 47%
• No : 53%

For people who have contracted a PGE

Have you taken steps to request an extension of the repayment period of your PGE?

• Yes : 17%
• No : 55%
• Not yet : 28%

For people who have not requested an extension of reimbursement of the PGE.

Why ?

• Lack of need: 33%
• Refusal in principle: 21%
• Believe not to be eligible: 29%
• other: 17%

Among the “Other” answers

“For the moment the question does not arise but it could happen. »

“I was planning to repay it in full this year. »

“I'm really afraid of sending the wrong signal to banks and credit hedging institutions, which could reduce my authorized outstandings, which would block me in my activity. »

State of mind

What is your current state of mind?

• Worry) : 57%
• Angry : 9%
• Disillusioned: 19%
• Optimist: 3%
• Serene: 3%
• Confident: 1%
• Depressed: 5%
• other: 3%

The government will soon propose a “resilience plan” for businesses and individuals. From your point of view as a business leader, what measure(s) should this plan for VSEs include?

“Government support for PGE reimbursements, URSSAF 2021 charges that I pay with a clearance plan in addition to 2022 contributions. My spouse and I are TNS and not from the S1 S1bis sector, so no help since May 2021 while turnover fell throughout 2021 due to the Covid. »

“We must block the price of fuels and raw materials. »

“Reducing social charges even if it means paying them back to the employee to increase their purchasing power, and the State gains in return on the collection of VAT, help with energy bills. »

“Reinstate partial unemployment. »