Plus 73.7% for steel, plus 69% for PVC, plus 33% for copper. Since a year, the prices of building materials are soaring everywhere in France and Corsica. Supply lead times get longer when it’s not just the sold out. The situation is due to a destabilized market at the global level with the strong economic recovery in China and the United States. But these increases are hurting construction companies in our country, which find themselves forced to organize themselves.
“On aluminium, we are going to have a third successive increase in March. On glass, our supplier announces more than 10%. Wood is even more complicated because in addition to the price increase, we have supply problems”explains Nicolas Lisabeaut, co-founder of the company “Mira” based in Porticcio, specializing in wood and aluminum joinery.
Avoid building sites at a loss
Faced with these fluctuations, he and his associates are forced to adapt. “On the quotes, we now put a short validation time because we do not know where we are going. For example, we are committed to certain markets where today the invoicing is no longer up to date, where _the margins are no longer there_“, he explains. Another solution, he is beginning to replace certain species of wood from abroad with Corsican wood, which is easier to obtain at the moment.
The situation is paradoxical and frustrating since, at the same time, the demand is there. “After years of crisis in the building industry, we are taking advantage of the Covid effect since everyone wants to redevelop their house. Except that we find ourselves faced with these price increases and these shortages”adds Nicolas Lisabeaut.
A situation that is here to stay
At the level of all professionals in the sector, the fear is that in the long term some companies will find themselves destabilized. In addition to price increases, many construction sites are falling behind schedule because of shortages. “Construction companies therefore risk a double loss: that linked to the increase in materials and equipment used and that caused by late delivery” recalls the Construction Federation of South Corsica. Especially since the situation is likely to last. No price stabilization is expected before the end of the first half of 2022.