Building trades: between economic optimism and attractiveness deficit

Article written following the Ipsos x Episto study on a population of construction craftsmen. It was written by the Ipsos teams: Damien Barnier (Department Director, Market Strategy & Understanding), Florence Léandre (Study Director, Market Strategy & Understanding), and Pierre-Antoine Lacroix (Study Director, Market Strategy & Understanding).

Worrying favorable economic perspectives due to lack of attractiveness

Economically speaking, 90% express satisfaction with their company's level of activity for 2023 (of which 38% are 'very satisfied') and believe it will remain the same or even improve in 2024, with 40% in both cases. It is observed that the most optimistic are those working in the renovation sector.

However, while this dynamism creates needs – 51% of the companies surveyed are looking to recruit (of which 34% in the short term), the attractiveness of construction jobs remains particularly low, with 89% stating that it is difficult to find labor (60% even think it is 'very difficult'). At the same time, it is important to remember that it is mandatory to call upon a RGE craftsman to benefit from energy renovation aids. If there are fewer of them, the French may delay work or go for the most economical option.

This attractiveness deficit raises the question of valuing trades in craftsmanship, primarily within the education system, which translates for 54% into a lack of candidates, with 65% on the other hand feeling they lack skills while being overly demanding: 28% find salary expectations high.

The question of price is central, both for sourcing quality materials (the most important criterion for purchasing tools, supplies, etc.) and for having a sufficient margin to properly compensate employees. It collides with the two major concerns of craftsmen in the construction sector for 2024, the cost of raw materials and fuel, ranked #1 and #2 at 65% and 42%, respectively.

An inevitable environmental awareness that calls for a need for support

The decrease in demand (37%) and management of employees (36%) follow, with the environmental dimension representing both an opportunity and constraints. On one hand, the government wants to accelerate the energy transition, which benefits craftsmen, but on the other hand, regulations like RE2020[1](to take into account environmental performance in new construction, from the site to the building itself) impose new standards.

75% of craftsmen in the construction sector therefore consider environmental issues important for their company and activity, and 81% believe their consideration will increase in the next 5 years, with construction waste management representing challenge #1, followed by material composition and energy consumption. They need support and 92% of craftsmen in the construction sector believe that at least one of their partners, brands, manufacturers & distributors is legitimate to assist them.

If there were a key takeaway from this study, it would be the feeling of craftsmen in the construction sector of being in a paradoxical situation: rather favorable economically but poor in terms of attractiveness while they need to recruit.

A rather encouraging sign: in its latest note on February 2024[2], the Bank of France noted a slight decline in interest rates compared to January (settling at 4.11%) for home loans to individuals. A first in two years as banks are trying to revitalize demand. And obtaining loans when the number of homes to renovate by 2050 (20 million[3]) offers exceptional prospects that deserve to be valued.

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