The steel construction market - France (2024)

1.2 A slightly growing global market

The metals market is estimated at ***.** million tonnes in ****, and is expected to grow at a CAGR of *.**% to ****.

Global metal market development projections World, **** - ****, in million tonnes Source: ****

The market studied is expected to grow in the medium term, driven mainly by increasing demand from the construction industry. However, this growth could be hampered by rising greenhouse gas emissions linked to the processing of base metals and the production of metal products. On the other hand, the boom in the production of electric vehicles should offer new growth opportunities over the forecast period. Geographically, the Asia-Pacific region, led by China, India and Japan, is expected to dominate the market in terms of consumption.

Aluminum and copper are the base metals most commonly used in the construction industry for their durability and strength.

Main aluminum-producing countries World, ****, in thousands of tons Source: ****

China is by far the leading aluminum-producing country, with ** million tonnes in ****, well ahead of India with its * million tonnes. Aluminum, which is corrosion-resistant and highly conductive, is used for a variety of applications, such as windows, doors, wires, outdoor signage and street lamps.

Main copper-producing countries World, ****, in thousands of tonnes of contained copper Source: ****

The main ...

1.3 A domestic market that is experiencing some difficulties despite growth

In ****, the metal construction sector saw significant growth in sales, increasing by **% to *.** billion euros.

sales trend in the metal construction sector France, **** - ****, in € billions Source: ****

There were several variations in sales between **** and ****. It rose from €*.*** billion in **** to €*.** billion in ****, an increase of **.*%. Despite some notable declines in ****, ****, **** and ****, the overall trend over this **-year period is upward. Sales bottomed out in **** at *.*** billion euros, then peaked in **** at *.** billion. It's also worth noting that sales have exceeded the * billion euro mark on several occasions (***), indicating a certain stability despite fluctuations. This positive performance was achieved despite rising steel and electricity costs.

evolution of metal machined tonnage France, **** - ****, in thousands of tonnes Source: ****

Between **** and ****, machined tonnage underwent several variations. It began at ***.* thousand tonnes in ****, before peaking at ***.* thousand tonnes in ****. After a slight fall in ****, it dropped significantly in **** to ***.* thousand tonnes. From **** to ****, machined tonnage fluctuated before declining again to ***.* thousand tonnes in ****. Since then, it has generally increased, peaking at ***.* thousand tonnes in ****, before falling back slightly to ***.* thousand tonnes in ****. This forecast is supported by the positive performance of industrial building sites, which account for **% of the sector's activity. What's more, the ...

1.4 Imports and exports

The chart below illustrates French foreign trade in goods classified under code C**B: Building materials.

Foreign trade in building materials France, ****-****, million euros Source: ****

Imports have grown strongly in previous years, rising from *.* billion euros in **** to *.* billion in ****, an increase of **.*%. Exports, however, remain relatively constant, despite a very recent slight increase. Indeed, the value of exported products had remained between *.* and *.* billion euros until ****. This value rose to *.*** billion euros in ****, and will increase to *.*** billion in ****. The trade balance for this sector is largely in deficit, as exports do not cover imports.

Balance of trade for the metal construction sector France, **** - ****, in Source: ****

There has been a recent decline in the coverage rate, indicating that France is becoming increasingly dependent on imports. Exports and imports of building materials increased proportionally between **** and ****, which explains why the coverage rate remains stable at just under **%.

Main export partner countries World, ****, € million Source: ****

The main customers for French construction metals are European countries, led byGermany.Italy and the UK follow.

Main import partners World, ****, in millions of € Source: ****

The ranking of the main countries supplying construction metals is different. Indeed, China makes its appearance in *ᵉ place, behindSpain,Italy,Germany ...

1.5 Impact of COVID-19

The COVID-** pandemic, and its economic ramifications resulting from the application of prolonged lockdowns, reduced consumption and the mandatory shutdown of various economic and industrial sectors, did not spare the steel construction market. Due to the lack of information specific to this industry, we will look at the impact of the pandemic through the two markets on which the steel construction market vitally depends: the steel market and the construction market.

The steel market in France saw an overall decline of **.*% in ****, directly correlated to the COVID-** pandemic (***) [***].

If we look at the construction market, we see that at European and French level, this market is in serious decline between February **** and May ****, with a recovery (***) later in the year. The table below illustrates this trend.

Construction output index France & EU-**, ****-****, index *** base **** Source: ****

It is also interesting to analyze the breakdown of construction between residential and non-residential sites. Thanks to the available data, we can observe that in the months between February and May ****, construction activity saw a massive drop compared to the previous year (***).

The table below shows the number of active non-residential constructions as well as those authorized between the two years. As can be seen, four ...

2.1 Typology of public and private demand

The construction sector as a whole

The steel construction sector is a sub-segment of the construction industry. It is therefore necessary to examine the available data on construction in France, demand and its evolution

According to the FFB (***). This corresponds to a floor area of **.*** million m*. Non-residential space started this year breaks down as follows:

Non-residential space under construction France, ****, in thousands of m* Source: ****

The main type of building under construction in **** will be industrial and storage buildings. This is followed by agricultural and administrative buildings.

The first demand to which metal construction companies must respond is that of public contracts, i.e. orders placed by the State and local authorities, whether regions, départements or communes.departments and communes may decide to finance the installation of pylons on their territory, but they may also issue invitations to tender for other types of metal construction.

Public contracts can be more or less interesting for manufacturers, depending on their size. Smaller contracts generally involve the renovation or construction of small components for local authorities. The larger ones, on the other hand, can involve much more imposing structures, such as the Saint-Hilaire-de-Riez aquatic complex built for the Saint-Gilles-Croix-de-Vie region community of ...

2.2 Demand drivers

The table below shows construction spending from **** to ****, with figures for **** not yet available. We do know, however, thattotal investment in **** was ***.* billion euros.

Construction investment France, ****-****, billions of euros Source: ****

Construction investment stagnated after the **** crisis and even declined between **** and ****. However, there has been a recovery since ****, marked by a slight drop in **** following the health crisis. In fact, according toINSEE data, investment in construction rose from *** billion euros in **** to *** billion euros in ****, before reaching *** billion in ****.

Since ****, investment in public works has been on the rise, thanks to the accelerating recovery in local investment on the one hand and private investment on the other[***] (***).

Major projects drive the sector

Major public investment projects are generally important for the metal construction sector. Although they don't all directly involve metal buildings, the assistance of steel construction companies is often required for the framing or installation of certain parts.an example of this is the Canopée des Halles in Paris, which was built for a total budget of *** million[***].

The importance of mortgage rates and savings

As far as the private market is concerned, it's important to mention the ability of private agents (***) to borrow. This is largely ...

2.3 Focus on construction

Construction sector analysis:

The FFB (***) estimates the value of production in the building sector at €*** billion in ****, up *.*% on ****.

Production value in the construction sector France, ****- ****, in billions of euros Source: ****

The chart below shows the breakdown of production in value terms according to the different segments of the construction sector. As can be seen, the maintenance-improvement sector contributes over **% of the total.

Breakdown of production by value in the construction sector, by type France, ****, as % of total Source: ****

Among new housing, multi-family housing is the most represented project type, but the number of new housing starts is declining.

Overall, the number of new housing starts will be *.*% lower in **** than in ****.

trend in the number of new housing starts France, **** - ****, in thousands of new housing starts Source: ****

2.4 Demand drivers: public works

Public works sales will reach ** billion euros in ****, *.**% higher than in ****, according to the Fédération Nationale des Travaux Publics. The growth observed in **** is partly due to a significant increase in production costs, which rose by an average of *.*%. However, in ****, activity is set to accelerate further, thanks to the impetus given by metropolitan investments in structuring projects.

Public works sales France, ****-****, in billions of euros Source: ****

The graph below shows the breakdown of **** sales by trade. Roadworks, earthworks and waterworks account for the majority of sales (***).

Breakdown of public works sales by project owner France, ****, in Source: ****

The municipal electoral cycle has a major influence on the evolution of public works: in the run-up to municipal elections, we often see a significant increase in investment by communes and intercommunalités in order to carry out the programs announced during the term of office before the next election. However, the year of the election, and especially those following it, often see a reduction in investment, as municipal teams prepare new projects for their commune.

Geographical distribution of public works

The map below shows the breakdown of sales by region in France for public works

Source: ****

2.5 Greater Paris and the Olympic Games

In addition to the construction of metal parking lots, which has been particularly active in recent years, with renewed demand from hospitals, shopping malls, airports and railway stations, as the SCMF points out, it is worth recalling the importance of major projects (***), and on the other hand, the constructions themselves can sometimes be made of metal, like the Arena de Paris la Défense, a building constructed almost entirely of metal.

Budget for Greater Paris and the Olympic Games France, ****, in billions of euros Source: ****

3.1 Market organization

Source: ****

The steel construction market is divided between several players. Steel producers supply the raw materials needed by the fabrication companies - beams, tubes, etc. - and then the construction companies transform the steel received into usable parts on the construction site. Then, construction companies transform the steel received into usable parts on the building site, and provide the technical expertise and manpower to install the metal framework and the rest of the building in place. Downstream of the market, we find consumers, local authorities, businesses or private individuals.

3.2 The sector's recruitment problems

The metal construction industry is struggling to recruit skilled workers, as estimated by the European Union research institute SCMF. The sector's overall workforce had grown by just *.*% in ****, even though **,*** people would be needed to meet recruitment problems by ****, or *,*** people a year. The use of temporary workers is a temporary solution that will not meet the long-term needs of the sector's trades, from workshops with design functions to construction sites with workers. However, the year **** was marked by the arrival of many new workers, bringing the total workforce to **,***.

Number of employees in the metal construction sector France, ****-****, in thousands source: SCMF

In the absence of more recent figures, the breakdown of the various trades in **** was as follows:

Distribution of trades within the metal construction workforce France, ****, in number of jobs Source: ****

The most represented profession is that of managers and employees(***). Temporary workers therefore remain in the minority.

3.3 Steel sector overview

Steel construction relies on various metals, steel being one of the most important. In this section, we take a look at the steel sector. The production process There are two distinct processes involved in steelmaking: The blast furnace, made from iron ore and coal (***); The electric arc furnace (***), made from recovered steel. The blast furnace production process is described below Pig iron formation : iron ore and coke are fed into the blast furnace from above. The heat inside burns the coke, and chemical contaminants are removed. The iron is then loaded with carbon (***), which enables it to sink and become cast iron. This must then be separated from a mixture of waste materials known as slag. Transformation of cast iron into steel The molten cast iron is mixed in an oxygen furnace, where oxygen is blown in to eliminate the carbon in the form of CO*. The result is steel. Refining The steel obtained is refined by adding elements (***) to form different alloys and modify the steel's mechanical properties as required. Casting : the steel is gradually cooled until it solidifies. Continuous : the steel is reheated to make it malleable. It is then flattened in rolling mills and given the desired ...

4.1 Offer typology

The table below shows all the work carried out by the metal construction sector

Source: ****

When it comes to construction, there are several types of metal profiles and housings that can be produced in workshops:

The sections forming the structure can be cold- or hot-formed, and shaped in different ways Roofing or cladding panels, which form the building envelope, can be corrugated or ribbed, for example Decking sheets for floors, with rips or scratches

4.2 Prices vary widely

The prices charged by metal construction companies vary widely, depending of course on the project. This is particularly clear when we look at the price of a steel structure.on average, the cost of a metal frame is €*** per square meter, including installation, with a price range from €** to €*** per square meter. The specific price depends on the type of project and the customer's wishes:

Source: ****

Although slightly more expensive than the average, single-family homes with metal frames are still affordable, with an average price per m* of €*,*** for new homes with traditional frames[***].

However, the price of completed projects varies greatly according to technical complexity, materials used, surface area... For example, the renovation of the historic Domaine de Faiveley winery had a budget of * million euros, for a surface area of *** m². Such a high price is explained by the design costs and the technical difficulty of respecting the spirit of the building, which was built according to Eiffel[***] architecture.

4.3 An offering that adapts to today's challenges

Innovation

In its annual press briefing, the SCMF notes that, faced with recruitment difficulties, the sector needs to innovate in order to gain in productivity to face up to international competition. We are witnessing the development of numerically controlled machines, which is now associated with the automation of production flows and its automation. Construction *.*, based on the Industry *.* model, is a hot topic, as explained by the European Environment Agency FIEC (***).

Sustainable development

Steel is a ***% recyclable material, so steel fabricators are increasingly committed to respecting the environment, from construction to dismantling. Workshop prefabrication, for example, cuts construction time by ** to **% compared with traditional construction. The structure of a metal building is often * to * times lighter than that of traditional structures, and can often be dismantled easily, enabling materials to be separated and recycled efficiently[***].

Urban density and rehabilitation

In terms of urban density, steel construction enables the rehabilitation and extension of high-rise buildings, as in the case of the Tour Lumière in the heart of the city of Tours. More generally, the use of metal materials makes rehabilitation easy, whether for renovation or for reinforcing foundations, as was the case with the Cité de la Monnaie.

5.1 Regulations in favor of the sector

Government surtax measure

The SCMF explains in a press briefing that the government has taken the decision to pass a bonus measure: a tax measure to support future investment, introduced in ****. This allows companies to write off ***% of the cost price of industrial equipment on their balance sheet. The assets concerned do not include buildings, but this gives companies some leeway to invest elsewhere.

ELAN bill created to boost the sector

According to Small modular construction the ELAN (***) law in **** is to make it possible to build more, better and cheaper. One of the measures is to facilitate prefabricated construction systems by "adapting the allotment rules for public orders and payment schedules."

In the Construction and Housing Code, ELAN aims to legally define the notion of prefabrication so that buyers can "include in their orders macro-lots adapted" to modular offerings.

Subsidy schemes for private individuals

There are a number of subsidies available for this type of work:

The energy renovation premium for re-roofing; АNАH grants and subsidies.

When changing insulation or plastering attics:

The **** tax credit of **% with a minimum cоst of *** EUR per m² ; The Ecо loan: zero rate if the total amount of work reaches a minimum ...

5.2 Awarding public contracts through competitive bidding

Distribution to private individuals is not really special, since it's traditional Business to Consumer distribution. For companies and local authorities, on the other hand, it can be more interesting, as they can - and sometimes must - go through a call for tenders (***).

A company may choose to launch a call for tenders in order to receive interesting proposals.The file written by French markets on calls for tender and the website Marché public website provides information on the legislation governing calls for tender.

Formalized procedure

A call for tenders is an invitation to tender issued by a public purchaser, to which it may or must have recourse. Formalized procedures are so called because, above a certain market estimate threshold, a call for tenders is mandatory, and a whole codified process is engaged. The thresholds are as follows:

*.** million euros for works contracts ; ***,*** for public supply and service contracts; ***,*** for local authority supply and service contracts.

Once the bids have been received, the local authority must enter into a negotiation procedure (***), followed by the competitive dialogue phase.

Tenders can be either open - in which case the candidate company must submit two files, the first containing its skills and qualities, ...

6.1 Segmentation

• ArcelorMittal
• Briand Groupe
• Cancé Groupe
• Screb Groupe
• France Structures Distribution
• Formeto
• Eiffage Métal
• Baudin Châteauneuf
• Fayat Groupe
• Soprema Groupe
• Gecina
• Cougnaud Groupe
• Freyssinet Soletanche
• Legendre Groupe
• Sogea Environnement (Vinci Groupe)
• Bacacier Groupe (Kingspan)
• ESA Charpente Métalliques
• Matière TP Groupe
• GH Construction Métallique
• Louis Groupe
• Poulingue