Building craftsmen driven by renovation

The activity of building craftsmen is still progressing but less and less quickly, more driven by renovation activity than by new construction, according to figures from their professional organization published on Wednesday.

In the third quarter, activity increased by 2% compared to the same period of 2021, according to estimates from the Confederation of Crafts and Small Building Companies (Capeb).

A slowdown compared to 3% in the second quarter and 3.5% in the first, which is fueling Capeb uncertainties for the second half of 2023.

There is a cycle effect anyway, which after Covid results in a slowdown, since post-Covid, in 2021, we had a very significant catch-up, so this effect has flattened out a bit and we returned to a normal situation, developed in a press conference Alain Chouguiat, director of economic affairs of Capeb.

Maintenance-renovation on the rise

As since mid-2021, it is maintenance-renovation that is growing faster than activity in new construction (2% against 1.5%), the opposite of the trend that prevailed before the pandemic.

Energy renovation work, encouraged by the State through aid such as MaPrimeRnov’ and a binding timetable for landlords, has progressed in particular, by 4% over one year.

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Under the Climate and Resilience Law, the most energy-intensive housing will be gradually banned from renting from 2023. The objective is to accelerate the energy renovation of buildings, which with their use represent more than a quarter of France’s greenhouse gases.

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Inflation, driven by energy prices, continues to weigh on the sector, which is sensitive to it. Thus, 89% of craftsmen said they had passed it on, at least in part, to their prices since the start of the year, in particular carpenters-locksmiths, masons and electricians.

Business failures jumped by more than 50%, due to the cessation of state-guaranteed loans (PGE) granted to deal with the pandemic. But there continue to be more creations than failures.

There are companies which are more weakened, independently of the PGE, and which are not armed to face the problems of cash flow, new organization…, added Alain Chouguiat.

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