The president of the French Building Federation (FFB) visited Martinique last November to formalize the merger between the Martinique Regional Federation of Building and Public Works (FRBTP), chaired by Steve Patole, and FFB Martinique, chaired by Eddy Ouly. In this interview, he discusses the sector’s key issues, the challenges ahead, and the outlook for the construction industry, both nationally and locally.
Mr. Salleron, could you tell us a bit about your background and your current role as head of the FFB?
Olivier Salleron: I was elected president of the French Building Federation on March 20, 2020, two days after the start of the COVID-19 lockdown. It was a baptism by fire, but it allowed me to quickly grasp the challenges that lay ahead. I was reelected in March 2023 for a second three-year term.
My career path has been that of a hands-on professional. I am a plumber and heating engineer, and I run a company with about 40 employees in the Dordogne. Before becoming national president, I served as departmental president in the Dordogne and then as regional president in Nouvelle-Aquitaine. This experience has proven invaluable in understanding the day-to-day realities of our businesses across all regions.
The construction industry is going through a difficult period. What are the main challenges you're facing?
We are facing a major crisis in new housing construction, with a sharp drop in building permits. This situation can be attributed to several factors. I can cite the following: inflation, rising interest rates that have left many buyers unable to qualify for loans, stricter eligibility criteria for the interest-free loan (PTZ), and the premature implementation of certain principles related to land development.
It is important to understand that this situation has repercussions for the entire economy and society. Housing is one of the top expenses for households in France. When French people are asked about their concerns, housing ranks far ahead of health, safety, or even unemployment, according to some surveys. This underscores the importance of this issue. Added to this are the challenges associated with the ecological transition, including the need for large-scale renovation of the existing housing stock to reduce our energy consumption. This is a colossal undertaking that requires significant investment and a skilled workforce.
Fortunately, Valérie Létard, Minister of Housing and Urban Renewal, has taken a pragmatic and comprehensive approach to all these issues. The minister championed important measures for the sector during the debates on the 2025 budget bill.
You mention government instability as an obstacle. What message would you like to convey to the government?
This instability is detrimental because it prevents the implementation of the medium- and long-term policies our sector needs. Companies need predictability to invest in equipment, human resources, and training.
However, I want to remain optimistic. Valérie Létard is a hands-on leader who is well-versed in the challenges of land-use planning and housing. We welcome the return of zero-interest loans for new construction nationwide, the launch of an initiative on rental investment, and the continued increased support for energy-efficient renovations.
As for the «zero net land take» (ZAN) policy, we must strike a balance between the need to protect the environment and the need to build housing, particularly near employment hubs. There will be no reindustrialization without a proactive housing policy.
You were in Martinique in November. What are the specific challenges facing the overseas territories?
There are many challenges, as conditions vary from region to region, particularly due to demographic factors. The department of Mayotte is now facing reconstruction challenges. The FFB is working to ensure that the solutions developed are pragmatic and crafted in collaboration with local professionals.
There are concerns that are common across the board: higher material costs, transportation issues, port taxes, and often very long payment terms, all of which pose significant challenges for our companies. There are also specific challenges, such as the renovation of existing housing, which requires significant investment and, no doubt, tailored procedures given the issues surrounding land ownership and joint ownership. During my visit, I observed that there is an enormous need for renovation, whether to improve residents’ comfort or to adapt buildings to local climatic conditions.
To better address these realities, about two years ago I proposed creating an additional «region» within the FFB, dedicated to the overseas territories. This allows us to collaboratively discuss issues with all the federations and bring them to the attention of all relevant stakeholders at the national level. We have also appointed a representative from the overseas territories who serves on the Council of Regions and the FFB Executive Board. This position rotates annually to ensure balanced representation.
Our overseas territories are an undeniable source of wealth, and we must draw inspiration from them.
You mentioned the merger of the construction industry associations in Martinique. Can you tell us more about that?
In fact, I came in November to formalize this partnership. A memorandum of understanding was officially signed by Eddy Ouly and Steve Patole on November 12 in the presence of the presidents of the consular chambers.
This was an important first step. The construction industry must speak with one voice within the local ecosystem. It is also a matter of defining an action plan to meet the needs of the people of Martinique, make these trades more attractive, promote the sector, and successfully navigate the ecological transition.
What is the outlook for the construction industry in 2025?
The The 2025 budget includes four measures that the FFB has been advocating for:
- the reinstatement of a new PTZ across the board (including in Zones B2 and C) and for all types of housing (including single-family homes) through the end of 2027; ;
- an exemption from gift and inheritance taxes of up to 300,000 euros per beneficiary, provided that these funds are used to finance a new primary residence or an energy-efficiency renovation. The measure is in effect through the end of 2026; ;
- the reduction in the Solidarity Rent Reduction (RLS), which reallocates 200 million euros to public housing operators for investment; ;
- maintaining the MaPrimeRénov’ budget, with a potential commitment of 2.3 billion euros, which is in line with actual spending in 2024.
The construction sector generated 215 billion euros in revenue in 2023. Residential construction accounts for 63% of this activity, and non-residential construction accounts for 37%. Energy-efficiency renovations account for 30 billion euros, or slightly more than a quarter of the improvement and maintenance sector.
These figures demonstrate the importance of our sector to the national economy. We are a driver of growth and employment, with 1.759 million people working in the construction industry, including 1.286 million employees.
A few words about the sector’s appeal to young people?
This is a major challenge, and I’ve made it my top priority. We’ve invested heavily in communication—particularly through social media—to highlight our professions, which are becoming increasingly technology-driven. The results speak for themselves: in five years, we’ve gone from 60,000 to 100,000 apprentices nationwide.
We must keep up this momentum by demonstrating that the construction industry is a sector with a bright future, particularly because of its environmental benefits. Our trades are evolving, with the growing use of digital technology, new bio-based materials, and innovative techniques such as exoskeletons to make workers’ jobs easier.
The message I want to convey to young people is that the construction industry offers exciting opportunities, careers with room for growth, and the chance to make a tangible contribution to the green transition. We are literally building the world of tomorrow, and that is a great source of pride.
The future of the construction industry looks exciting, with major challenges ahead in the areas of housing, the green transition, and digital transformation. I am confident that our companies will be able to seize these opportunities to build a sustainable and prosperous future, both in mainland France and in our overseas territories.
What final message would you like to convey to the government and stakeholders in the construction industry?
We must ensure that nothing hinders the ongoing improvements. This requires a comprehensive effort to streamline processes. The elimination of the reduced VAT certificate is a first step forward; while this list is not exhaustive, we must also work on Phase 2028 of the RE2020, the ZAN, the REP, and the CSRD at the European level.
The goal of strengthening the economic recovery is worth pursuing. To that end, it is important to move forward without delay on the status of private landlords and on the European strategy for «affordable» housing—which is why the FFB Executive Committee traveled to Brussels in early March.
So there is still much to be done. The FFB is working on it.
Interview by Philippe PIED
Key Figures for the Construction Industry
- Revenue for 2023: 215 billion euros
- Share of housing in economic activity: 63%
- Energy-Efficiency Renovation Sector: 30 billion euros
- Number of workers: 1.759 million, including 1.286 million employees
The FFB in the Overseas Territories
- Creation of a region dedicated to overseas territories
- 8 affected federations: Martinique, Guadeloupe, French Guiana, Mayotte, Réunion, Saint Pierre and Miquelon, New Caledonia, and French Polynesia
- Objectives: to share local characteristics, exchange best practices, and raise awareness of key issues at the national level in order to meet the needs of stakeholders in the overseas territories