Business failures in the building industry have resumed their pre-pandemic pace, warned the French Building Federation (FFB) on Tuesday, which fears 135,000 job cuts by 2025.
According to FFB projections, the number of business failures in 2023 should return to its 2019 level, after having been reduced to a minimum during the pandemic, due to public aid to businesses.
We are seeing a dreadful and deadly acceleration of business failures over the past few months (…) especially in public works and real estate development, warned the president of the FFB, Olivier Salleron.
The FFB, which three months ago forecast 100,000 job losses by 2025, raised this figure to 135,000, after the government announced the gradual end of the Pinel device to support new construction and the tightening of the loan rate. zero for home ownership.
For the pure building, it would be 135,000 possible destruction of positions out of a current total of 1.73 million assets, said Olivier Salleron.
It is especially new housing, where activity is plummeting, which worries the employers’ organization, while new non-residential construction is crumbling and improvement-maintenance, driven in particular by energy renovation, is progressing too little to make up for the rest.
The crisis is inevitable, according to Olivier Salleron, citing among the difficulties the increase in the cost of credit and the rise in construction costs, the inflation of the prices of materials and energy and the stricter environmental standards.