An increase in non-road diesel, a surge in materials, margins under pressure: the conflict in the Middle East is hitting building trades hard, who fear another setback after already difficult months.
There rising costs accelerate in construction. Between surge in non-road diesel and increasing material prices, companies are having to deal with projects that are increasingly difficult to make profitable. A context which poses new uncertainties on the recovery of the construction sector.
Rising costs that are disrupting the entire industry
The GNR
There rising fuel pricesand in particular non-road diesel (GNR), used for power construction machinerydisrupts the business economy. According to professionals, its price has sometimes doubled, making operations undertaken on the basis of quotes signed before the outbreak.
Faced with this situation, the craftsmen adapt urgently :
– more rigorous selection of sites ;
– Travel arbitrations;
– Use of carpooling.
The materials
For their part, suppliers are starting to pass on their own increases, leading to a increased material costs. Particularly concerned are bituminous products, polystyrene and, more broadly, petroleum derivatives, but also metals such as copper and aluminum, or even materials whose manufacturing consumes a lot of energy.
According to field reports, increases are generally between +2.5% and +20%. More troubling for those in the sector: certain materials less directly linked to hydrocarbons, such as wood, are also affected. A situation which fuels the feeling of increases that are sometimes difficult to justify, even if the presence of glues or binders from petrochemicals can partly explain it.
A sector under tension, between fragility and concern
This new episode occurs in an already degraded context. For three years, the construction sector has faced a succession of crises which have undermined its dynamics. At the start of the year, bad weather in France had already disrupted activity, slowing down construction sites and weighing on treasuries. For many professionals, this further increase in costs appears to be a breaking point. Some mention “the crisis too many“, in a sector where margins are historically low and absorption capacities limited.
Beyond the economic issues, it is also the human factor that is worrying. Professional organizations report increasingly worrying testimonies, mixing resignation and distress. Faced with this situation, specific measures are beginning to be put in place in order tosupport artisansincluding on a psychological level.
In this uncertain context, the recovery of housingwhich seemed to be taking shape at the start of the year, could be compromised. The hypothesis of a rise in inflation, likely to lead to a rise in interest rates, poses an additional risk to the purchasing power of households. The result: a possible slowdown in real estate projects and, by extension, in activity throughout the sector.
