The Building and Public Works Federation 06 (FBTP 06) took stock this Monday of the year 2011 and the outlook for 2012. While the former is generally positive, the latter reveals significant concerns for the future. Laurent Trocmé, the president of FBTP 06, analyzes the strengths and weaknesses of the building sector in the Alpes-Maritimes.
<img class=" size-full wp-image-115056" src="https://www.nicepremium.fr/wp-content/uploads/2012/01/jpg_dsc_0707.jpg" alt="dsc_0707.jpg" data-description="Laurent Trocmé, president of the FBTP 06. © C.Manalt / Nice-premium" width="430" height="322" />
In view of the sluggish period from 2008 to 2010 for the BTP 06 sector, the year 2011 presents a rather positive record. Thanks to the Scellier law measures, new housing starts saw a strong increase (+50% in the third quarter compared to the same period in 2010). Maintenance and renovation took advantage of the VAT maintained at 5.5%, while the activity volume of public works was relatively stable. According to Laurent Trocmé, the president of FBTP 06, the building sector in the Alpes-Maritimes amassed 3 billion euros across all activities in 2011.
2012, Year of Austerity
The forecasts for the year 2012 are more mixed. BTP 06 follows the national trend, which is downward. For Laurent Trocmé, this is evidenced by a “significantly reduced order book compared to last year.” Several explanations account for this phenomenon.
Among them are: a budgetary context for local authorities that is not conducive to investments, the Scellier scheme reduced from 22% to 13% in 2012 (which is expected to disappear on January 1, 2013), the end of zero-interest loans for old housing and high-income earners, the tax credit for energy-saving works cut by 20%, the increase in taxes on real estate capital gains and, to a lesser extent, the increase from 5.5% to 7% for renovation work.
Consequently, FBTP 06 anticipates a loss of 700 to 800 jobs in the building sector in the Alpes-Maritimes. The first effects are expected to be felt from the beginning of summer and to worsen throughout the second half of the year.
The Threat of Competition
FBTP 06 also identifies several threats that could exacerbate this situation. Foreign companies, increasingly obtaining public contracts, take advantage of a system known as “posting of workers” to provide cheaper labor and reduce costs. However, according to Laurent Trocmé, the price accounts for “80% of the score of a technical memo during a call for tenders.” Another regulation pointed out is the auto-entrepreneur status, which creates unfair competition for the BTP craft sector.
Major Projects for 2012
Nevertheless, FBTP 06 can still count on several major projects in 2012, such as the Plaine du Var OIN, the Tramway works, the LGV, and the Cannes/Grasse penetrative road. However, Laurent Trocmé reminds us of the need to support a vital sector like construction. The building industry can create 10 jobs for every million invested, for example. A territory rich in infrastructure also allows, ultimately, for the development of businesses. A miracle remedy in these times of crisis.
