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, at 40% in both cases. The most optimistic are observed to be those working in the renovation sector.

However, while this dynamism creates needs - 51% of the companies surveyed are looking to recruit (of which 34% are 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 hiring an RGE-certified craftsman is mandatory to benefit from energy renovation subsidies. If there are fewer of them, French homeowners may delay work or opt for the most economical choice.

This attractiveness deficit raises the question of valuing trades in craftsmanship, primarily within the education system. For 54% of respondents, this translates into a lack of candidates, while 65% feel that candidates lack skills while being overly demanding: 28% find salary expectations to be high.

The question of price is central, both for sourcing quality materials (the most important criterion when purchasing tools, supplies, etc.) and for maintaining a sufficient margin to properly compensate employees. This clashes with the two major concerns of construction craftsmen 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

A decrease in demand (37%) and employee management (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](which factor environmental performance into new construction, from the site to the building itself) impose new standards.

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

If there were one key takeaway from this study, it would be that construction craftsmen feel they are in a paradoxical situation: rather favorable economically, yet poor in terms of attractiveness at a time when they need to recruit.

A rather encouraging sign: in its February 2024 note[2], the Bank of France observed a slight decline in interest rates compared to January (settling at 4.11%) for home loans to individuals. This is a first in two years, as banks try to revitalize demand. Securing loans becomes crucial when the number of homes to renovate by 2050 (20 million[3]) offers exceptional prospects that deserve to be fully leveraged.

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