Sector Worried About Rising Prices

Olivier Salleron keeps repeating it: “The sector is worried.” The president of the French Building Federation (FFB) fears that the war in the Middle East could lead to a situation similar to what Europe experienced in 2022 after the Russian invasion of Ukraine. The rise in raw materials had heavily slowed down the sector’s activity.

It must be said that the closure of the Strait of Hormuz, through which about 20% of the world’s hydrocarbons pass, has led to an increase in fuel prices at the pump. The price of crude oil has already surpassed the symbolic $100 mark and could reach $134 in May according to specialists if the conflict in the Middle East persists. Dependent on their vehicles, artisans are feeling the impact. “Our means of transportation to get to the construction sites are affected, so the profitability of companies is impacted,” says Olivier Salleron.

Moderate Increases

But beyond fuel, raw materials are also experiencing an increase. Bituminous materials, petroleum derivatives used in construction, and electrical products have respectively increased by 8.4% and 2.4%. “This is absolutely not comparable to the war in Ukraine in 2022,” nuances the sector representative. “At that time, the cost of raw materials had doubled, even tripled over six months.” But the fear remains: “We are already noticing here and there some suppliers preemptively increasing the prices of their products when we are not in a critical shortage situation at all. And if we alarm everyone, these cases could increase.”

The German giant Hoppe (door handles and windows) will soon have a 5.5% increase on its aluminum and brass products. The Alphatro group, which produces PVC systems, has raised its prices by 9.7% since March 30, just to name a few.

To avoid price hikes across the board, the FFB is proposing the creation of a public observatory for building material prices, which would provide more transparency for professionals among themselves, as well as for individuals: “This would allow everyone to know that when there is a 1% increase on a product and it is passed on by the manufacturer at 7%, someone is taking advantage of the situation.”

A Sector Facing Challenges

While no shortages are expected at the moment, some materials could easily become tense, like tiles, which require a large amount of energy to dry the clay. “During the conflict in Ukraine, producers seeing energy prices soar preferred to stockpile and halve or even reduce their production by two or three, convinced that no one would buy at that price,” recalls Olivier Salleron. The result: when the market picked up again, there was a shortage of tiles. “This generates a lot of stress,” regrets the plumber.

Especially since the sector was just recovering from several difficult years. Covid-19 and the war in Ukraine had caused the market to plummet, both in new construction and in the renovation of existing buildings. The Confederation of Crafts and Small Building Businesses (Capeb) reports the loss of 40,000 jobs between 2024 and 2025 in a report published earlier this year. At the FFB, there is a 9% decrease in turnover over the same period. “We had hoped for a 2% growth in 2026. But if the conflict continues, the building sector would be severely affected,” concludes the president of the FFB.