Olivier Salleron, president of the French Building Federation, estimated Tuesday on franceinfo that the war in Ukraine generates “a risk of shortage” which “drives prices up”.
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The construction sector bears the brunt of the economic consequences of the war in Ukraine “on the prices of materials and the possible shortage of some of them”, testified on franceinfo Tuesday March 29 Olivier Salleron, the president of the French Building Federation. Added to this is “an energy instability that hurts us very much”he said, explaining that companies are facing “the exponential rise in costs” energy.
However, according to the president of the French Building Federation, the sector is in great shape: “The order books are well filled and we emerged from the crisis with a successful recovery”, welcomes Olivier Salleron. He therefore qualifies the economic consequences of the war in Ukraine as “fourth blade” especially after the Covid-19 epidemic.
According to him, the surge in prices linked to the war in Ukraine is inevitable, in particular because of the increase in energy prices. “To make bricks, earthenware or tiles, you need energy. It’s a big percentage of manufacturing.” Olivier Salleron also warns of the risk of shortages linked to “blockages” who could intervene “very quickly, after one or two months”. This concerns materials such as steel or rare metals, which often come from Ukraine or Russia. “It drives up prices”he observes.
Construction companies are, he says, forced to pass on this price increase. However, this constitutes “a big brake” for this sector, with “15 to 20% less activity” as customers try to postpone their jobs. “It can be deadly for construction companies”he warns.