Public Works Activity Stagnates at the Start of 2023
According to the economic bulletin published by the FNTP (National Federation of Public Works) for February 2023, the start of the year has not allowed public works activity to regain momentum. In fact, it remains on a plateau, leaning in the wrong direction. The work carried out has fallen by 2.2% in just one month and 1.2% cumulatively in January and February 2023, compared to the previous year.
On the other hand, the amount of invoices has seen a significant jump of almost 5% over the course of one year. This increase can be attributed to the evolution of production costs. Additionally, prices have rebounded by 1.2% between December and January due to further increases in the cost of mineral products, materials, and fuels.
The trend in the number of hours worked reflects the overall volume of activity. Over the first two months of the year, permanent workers have seen a decrease of 0.6% compared to 2022, with the workforce falling by roughly the same proportions. Temporary employment has suffered even more, with the number of hours worked by temporary workers falling by 5.4% over one year. This has caused the total volume of hours worked to fall by 2.1% compared to the start of 2022.
However, there is some positive news in terms of order intake. It has been doing well at the start of the year, growing by nearly 30% cumulatively in January and February compared to 2022. This growth is mainly driven by the awarding of major contracts within the framework of major projects. For example, contracts for the construction of the new metro line in Toulouse were notified in February 2023, and two contracts for the interconnection works at Saint-Jean-de-Maurienne on the Lyon-Turin project were won by Eiffage and TSO.
The FNTP highlights that there are signals of restarting calls for tenders from metropolises. However, the federation is concerned that the dynamics of major construction sites may mask significant disparities by profession and region. They emphasize the need for an increase in order intake to breathe new life into the activity. The FNTP is also waiting for a restart of public procurement, which is particularly important as the dynamics of private customers could slow down due to the slowdown in the real estate market.
How has the lack of investment in infrastructure projects impacted the growth of the public works sector in 2023?
Ous year. This slowdown can be attributed to various factors, including bad weather conditions and a lack of major infrastructure projects.
The report highlights that the public works sector has been struggling to maintain growth for several months now. The decline in activity seen in the beginning of 2023 reflects a continuation of this trend. The lack of investment in infrastructure projects has been a major hindrance to the sector’s growth, as it not only directly affects the projects’ progression but also has a trickle-down effect on associated industries.
The adverse weather conditions experienced in recent months have also played a role in the stagnation of public works activity. Heavy rainfall, snowstorms, and freezing temperatures have impeded construction work on various projects, leading to delays and disruptions. This has further exacerbated the already challenging situation for the sector.
Furthermore, the ongoing COVID-19 pandemic continues to impact the public works industry. The pandemic has caused supply chain disruptions, labor shortages, and increased costs, making it difficult for projects to move forward smoothly. These challenges have further contributed to the slow progress in the sector.
The report suggests that in order to revitalize public works activity, there needs to be a renewed focus on investment in infrastructure projects. This could help stimulate economic growth, create jobs, and improve the overall condition of the country’s infrastructure. Additionally, measures to mitigate the impact of adverse weather conditions, such as improved project planning and implementation of climate resilience strategies, are crucial.
In conclusion, the start of 2023 has not brought about the desired momentum for public works activity. The sector continues to face challenges due to a lack of investment in infrastructure projects, adverse weather conditions, and the ongoing impact of the COVID-19 pandemic. It is essential for stakeholders to prioritize and address these issues in order to revive and accelerate the growth of the public works sector.
It is concerning to see the plateauing trend in public works activity for 2023, coupled with decreasing work and rising costs. This highlights the need for efficient budgeting and strategic planning to ensure the continued development and improvement of our infrastructure for the benefit of our communities.
It’s concerning to see the plateauing trend in public works activity for 2023, especially paired with decreasing work and rising costs. This calls for decisive action and careful planning to ensure the continued development and maintenance of our infrastructure.