In Hérault, as everywhere in France, the construction sector is facing a serious crisis. Businesses, promoters, everyone is coping and trying to survive. Since the start of the year, 170 companies have closed down.
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The buildings are growing but the money is not coming. In Hérault, as everywhere in France, the construction sector is hit by an unprecedented crisis. In the Occitan department alone, 170 companies have gone bankrupt since the start of the year. The cause: the surge in the prices of materials and energy.
Around twenty workers are working on the construction of a residential building south of Montpellier. The company Méditerranée Constructions received 3.7 million euros to carry out this project. Despite this help, operations director Benjamin Lacroix explains that he remains hungry. “Before, a cubic meter of concrete cost 90 euros. Now, it’s 110 or 115 euros. On the scale of a project, the additional costs are enormous”he explains with annoyance.
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The Covid-19 pandemic with the war in Ukraine has caused the prices of materials and energy to soar. “Our margins are zero. We just cover business costs. Family businesses, like ours, are in danger”adds Benjamin Lacroix. As a result, the profits of construction companies are almost zero.
In Montpellier, cranes and new buildings still seem numerous. But construction starts have fallen by 25% in two years. Rising interest rates are holding back buyers. “Projects are blocked”says Thierry Iacazio, of the Federation of Occitanie Méditerranée real estate developers. “Before, we sold lots in one year. Now, it takes two years.”
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Some projects risk being canceled at the start of 2025. However, demand for housing remains strong in Montpellier. The city is always attracting new residents. But in Hérault, 2,500 jobs could disappear if the crisis continues. “We hope for a recovery, but for the moment, nothing changes”concludes Benjamin Lacroix.
Construction companies are waiting for positive signs. For them, the urgency is there.
