On 8 September, the Capeb of Bourgogne-Franche-Comté organized a round table in Dijon (Côte-d’Or) which brought together installers, traders, producers and representatives of public authorities. Objective: to outline paths in view of the conclusion of solidarity commitments between the actors of the construction sector.
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Against the backdrop of soaring material prices and a recurring supply problem, the topic was raised within the assembly: “After two years of health crisis and conflict in Ukraine, the construction sector is facing the most serious supply crisis I have ever known, introduces Francis Voelin, president of Capeb Bourgogne-Franche-Comté. Many companies are now on the verge of suffocation, forced to constantly reduce their margins by absorbing the continuous price increases or even delaying the start of construction due to lack of supplies! Last spring, like other Capebs, we published a column in the regional newspaper with the aim of informing our customers of the situation. A context in which public authorities are legally disarmed to stop the situation that affects us and to counteract commercial practices that are not always justified. “
All in the same tornado …
Gathered at the invitation of Capeb Bourgogne-Franche-Comté, the group of about forty people is made up ofcompanies representing for the most part their departmental branch of the Capeb, regional traders, producers and also representatives of the public authorities, in order to help construction operators understand the context and consider the legal framework for their actions.
In the assembly, the issues of concern merge in particular around the problems of the treasury. “We never stopped while in prison. And in the current environment, if we ask for a staggered repayment of the State Guaranteed Loan (PGE), our rating risks being downgraded. There is a real problem here! “, Explains Jean-Sébastien Nonque, president of Capeb 21.
Franck Bernigaud, former manager of Girardon Matériaux (also national president of the Federation of Construction Materials Distributors, FDMC), reassured him: “Fortunately, we don’t always follow our clients’ quotes, because this would mean a drastic reduction in our business! during the health crisis and we were even discounted. Yet, we continued to accumulate materials. “
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Review clause
Another concern of an installer: “We signed public contracts for 2023 without being able to review prices, which continue to increase with our suppliers. How to do ? “
“Without a price revision clause, it is difficult to navigate when starting a project signed 6 months ago, confirms Emmanuel Leblanc, general secretary of Capeb 71. This is why we insist on including a clause in the budget. Don’t be afraid to show your customers the price increase letters sent to you by distributors. “
Inventories to cushion the increases
In the stock exchanges comes the eternal question of the shares being distributed. “While our sales to individuals are declining, since last spring we have increased our inventories by + 35%, explains a manager of Doras. Not to speculate, but to anticipate company orders. We also try to accompany their late payment. “
Éric Caudron, sales manager at Würth: “Before the health crisis we had 51 million euros in stock, which was then reduced to 32 million euros. They have now risen to 62 million euros. Making stocks available, partly locally, is a real strategic decision for Würth. Furthermore, 80% of what we sell is produced in Europe. “
Towards a to-do list
One certainty: the artisans have high expectations in terms of solidarity between the players and medium-term visibility regarding the increase in the price of materials. The organizers of the meeting underline that Capeb 86 (Vienna) has drawn up a “List of solidarity commitments of merchants and distributors of materials and equipment” signed by local actors. This experience seems to be a solid basis for allowing Burgundian and Franche-Comté actors to develop their own model of solidarity conduct. “We are gathered here to defend a sector with a view to a constructive future,” said one of the participants at the end of the meeting. On good terms!
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