Building, civil engineering and construction: focus on a dynamic sector

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With the health crisis and various confinements, the building and public works sector has seen an overall drop in activity of 15% in 2020 (Source: fédération française du bâtiment). While the building sector is holding its own,public works are suffering a more significant drop in activity due to a drop in public orders.

Not all market segments are equally impacted, with new housing and new non-residential housing falling by 23.6% and 23% respectively, while improvement-maintenance fell by 7.6%.

In effect, the French, who were unable to go on vacation, reserved part of their budget for DIY and home renovation.

What are the foreseeable developments for 2021? Zoom.

A gloomy 2020

The market recovery

Hiring on the horizon

A gloomy 2020

Following a very strict first containment, in March 2020, the construction sector saw its activity drop sharply by -15.2%. Construction stoppages and a drop in orders, particularly in new construction, partly explain this market crumbling.

In addition, the sector had to deal with many difficulties during the pandemic, starting with sanitary rules that were difficult to comply with, particularly distancing rules.

Professionals were also confronted with the reticence of individuals and businesses to have work carried out, due to lack of visibility and fear of the pandemic.

At the same time, they encountered delays in administrative authorizations, with building permits on the decline and a clear drop in public contracts, as local authorities operated at a slower pace (confinements and municipal election period).

In addition, like many other industries, the construction and public works sector is facing supply problems, particularly for timber, steel, copper and electronic components. Added to this are soaring material prices and the additional costs generated by the RE2020 (environmental renovation 2020).

Thankfully with the restart of building sites after the March containment, the construction sector is faring better than most business sectors, even if realized margins remain below 2019 levels and cash flow tight.

The market recovery

While demand for house building has slowed, renovation and rehabilitation have benefited from government support measures, contributing to

dynamism of the sector.

In fact, the renovation sector is doing rather well, thanks to public aid, notably the plan France Relance proposed by the government, which targets energy renovation in particular.

The future therefore lies in thermal renovation, bringing buildings up to standard with RT2020 (thermal regulations) or RE2020, with each new construction having to produce more energy than it consumes.

This market evolution should make the building industry more attractive and also implies need for recruitment of new skills.

Thus, although still below the pre-crisis average (- 5.6% compared to 2019), activity should rebound by + 11.3% in 2021.

Hiring in the pipeline

Building and civil engineering remains one of France's leading employers.

Employment was also hit during the 2020 crisis with 10,000 fewer jobs, but only in the temping sector. After falling at the start of 2020, employment picked up again in the third quarter.

Companies have deferred some of their hiring, and 2021 opens with many hiring prospects. At the same time, we're seeing a revival in work-study schemes, with financial aid for apprenticeships, notably the renewal of the "15,000 Jeunes Talents Bâtisseurs" to promote access to employment for young people from priority neighborhoods in the construction sector.

Among the most sought-after profiles, works supervisors and site managers are in pole position.

New needs in the IT field have emerged with the crisis, concerning the planning and procurement of raw materials, but also engineering specialists to respond to calls for tender.

Also, changing regulations and the energy renovation market offer recruitment opportunities in new professions.

The construction and public works sector still faces significant labor needs in masons, roofers, metalworkers, but also plumbers, heating engineers and electricians.

So, this optimistic outlook paves the way for the famous adage "when building goes, everything goes!".