In Charente-Maritime, the 2024/” title=”Letters to Quito / March 27, 2024″>construction industry is bracing for meaningful challenges, with projections indicating a loss of over 600 jobs by 2024 amid a sharp decline in orders and temporary work. Philippe Borne, president of the Federation of Construction and Public Works of Charente-Maritime, highlights the alarming trend, noting that temporary work hours plummeted from 430,000 in 2021 to just 198,000 in the third quarter of 2024. The sector faces mounting pressures from budget uncertainties,high credit rates,and new regulatory standards,leading to a wave of business bankruptcies and a stagnation in structural work. While public procurement remains a crucial component of commercial activity, budget constraints are limiting new projects, exacerbating the crisis in an industry already struggling to adapt.
Q&A Discussion: Challenges Facing the Construction Industry in Charente-Maritime
Editor: today, we delve into the pressing issues affecting the construction sector in Charente-Maritime. With us is Philippe Borne, president of the Federation of Construction and Public Works of Charente-Maritime. Philippe, recent reports indicate a potential loss of over 600 jobs in the region’s construction industry by 2024. Can you elaborate on what’s driving this trend?
philippe Borne: The situation is indeed concerning.several factors are contributing to the decline, including a sharp drop in orders and temporary work. As highlighted, temporary work hours fell drastically from 430,000 in 2021 to just 198,000 in the third quarter of 2024. this decline not only impacts job security but also reflects the overall stagnation within the industry.
Editor: That’s alarming news. What are the primary challenges currently facing construction businesses in Charente-Maritime?
Philippe Borne: One major challenge is the ongoing budget uncertainties and high interest rates, which hinder investment and new project approvals. Furthermore, newly imposed regulatory standards create additional obstacles, often making it difficult for companies to adapt quickly. These pressures have resulted in a wave of business bankruptcies, exacerbating the crisis.
Editor: You mentioned public procurement remains vital for commercial activity. How are budget constraints affecting this critical sector?
Philippe borne: Budget constraints are severely limiting the number of new public projects. While public procurement typically serves as a lifeline during economic downturns, the current limitations mean fewer opportunities for construction companies, which in turn leads to less work and financial security for employees in the industry.
Editor: What practical advice would you offer to construction companies facing these challenges?
Philippe Borne: Companies should prioritize adaptability and explore diversification opportunities. Engaging actively with local governments can open doors to pending projects and discussions on budget allocations. Investing in training for workers to meet new regulatory standards is also essential,as shifting skills can help businesses remain competitive. it’s crucial to stay informed about financial assistance programs that might be available to struggling firms.
Editor: Philippe, your insights provide a valuable viewpoint on the challenges in the construction sector. How can stakeholders in the industry work together to navigate these tough times?
Philippe Borne: Collaboration is key. By forming coalitions among businesses, we can advocate collectively for more favorable policies and financial support from the government. Sharing best practices and resource management strategies can also help mitigate individual business risk.Ultimately, a united approach will be vital in overcoming what is undoubtedly a significant crisis for our industry.
Editor: Thank you, Philippe, for sharing your expertise today. The challenges ahead are steep, but your practical insights give hope to many in the construction industry in charente-Maritime.
Through this discussion,we gain a clearer picture of the obstacles that lie ahead for the construction sector. The importance of collaboration and adaptability in facing these challenges cannot be overstated, and stakeholders must act swiftly to reverse the current trends before they become irreversible.