Which sectors of the construction industry have been hit the hardest?

“We are not conspiracy theorists, but it seems to be so.” This is a humorous response from Capeb President Jean-Christophe Repon to the question that some distributors or material manufacturers will take advantage of the inflationary context to increase their margins. Despite the fact that, according to the latest public opinion poll conducted by the Confederation of Crafts and Small Construction Companies, builders are noticeably losing weight: thus, 40% of those surveyed reported lower profitability in the first quarter of 2022 (5% increase in profitability ), according to figures presented by the trade union at a press conference held at its Paris premises on May 12, 2022.

The emergence of many additional costs

Building VSEs, at the end of the chain directly to the end user, receive equipment and materials from their suppliers at ever-increasing prices, not always passing on all price increases in their quotations. The risk would be to lose it by charging too high a price to a particular buyer. At the same time, Kapeb assures, as a bonus, the appearance recently of a lot of small additional expenses that did not exist before; for example, adding a cost line for pallets.

The long-awaited “building oaths”

La Capeb intends to take advantage of the next “Assises du bâtiment” announced by the public authorities to convey messages at the highest level. The state, according to craftsmen, should stimulate the entire value chain, starting with manufacturers and distributors, to play the game more, in the spirit of the construction crisis committee and the work of mediation companies. “We ask for more price transparency”also promoted by Jean-Christophe Repon. “Let us be clearly explained what follows from the rise in energy prices, from the war in Ukraine: we would like to understand.” While calls for solidarity are numerous in this sector, “We expect proof of love from this solidarity”he says teasingly.

Kabeb will return to the VAT load

The employers’ organization recently signed a solidarity agreement with seven of its distributors and industrial partners. This idea of ​​judging the actors who play the game clearly challenged business intermediary Pierre Peluzat. “I hope this idea will be realized”expresses the boss Capeb. “We’re not trying to stigmatize anyone: we want the government to talk to the actors.” Master builders will take advantage of the upcoming Conference to come up with other proposals aimed at not blocking the market in this inflationary context, such as checking energy renewal for households, increasing some MaPrimeRénov scales, or even changing the VAT rate. reduced.

An 18% growth is observed in the first quarter of 2022.

Which trades among construction workers are seeing the highest price increases? And how do these increases affect the final price? La Capeb, along with Xerfi, interviewed 1,700 construction companies to get an idea.

All business segments combined, the construction VSE is reporting an 18% increase in material prices in the first quarter of 2022, to which should be added the 18% increase seen in 2021. on average, the weight of purchases of materials and equipment is 30% of the costs in these companies.

In particular, for the period carpentry and plumbing supports the largest gain, with an increase of 21.5%. This is followed by masonry-general contracting (+19.4%), roofing-plumbing-heating (+17%), as well as equally fittings-finishing-plastering and electricity (+16.4%).

Industries that will have the most reflected the rise in prices in their quotes electricians (75%), who are already accustomed to take into account changes in the prices of certain metals in normal times. This is followed by carpenters (72%), HVAC (68%), masons (54%) and plumbing, decorative and plastering (46%). But how much of the price increase is transferred ? At best, 59% for carpenters, 57% for electricians, 45% for HVAC, 37% for masons and 33% for plumbing, decorative and plastering.

Hence the fact that Jean-Christophe Repon assures us to wait with “impatience” industry meeting promised by government authorities.