Key pillar of Monaco’s economy, the construction sector was the Principality’s third-largest employer in 2023, with 6,645 employees (excluding temporary workers). However, this figure may significantly decrease soon. The major projects of Testimonio, Mareterra, and the Ilot Pasteur are nearing completion, and no new large-scale projects are currently scheduled. Fabien Deplanche, president of Monaco’s Building Industry Employers’ Association, fears significant job cuts and potential cash flow issues for businesses in this sector.
The major developments of Testimonio, Mareterra, and Ilot Pasteur are close to being finalized. At present, there is little to no indication of new large projects on the horizon, such as the Fontvieille shopping center, Annonciade II, or Ilot Charles III. After a period of intense activity, is the construction sector facing a prolonged slowdown in the coming years?
Indeed, Monaco has seen an exceptional phase of development in recent years, with major projects reshaping the urban landscape. We may soon enter an extended period of inactivity. Projects like Annonciade II, Ilot Charles III, or the Fontvieille Shopping Center, when launched, will eventually revive momentum in the sector. In the interim, we must rely on other major public works to ensure the sustainability of our members’ businesses. Monaco’s development must therefore continue without abrupt interruptions to the economy, with long-term urban planning aligned with the country’s needs.
The National Council and the Minister of Social Affairs and Health, Christophe Robino, have indicated in press interviews that a significant decline in employment is expected in construction. Do you share this assessment, and are you concerned about the social impact, particularly on both permanent and temporary workers?
We have indeed observed signs of a potential slowdown in construction sector employment, partly due to the completion of the aforementioned major projects. I share some concern regarding the impact this may have on workers, including both permanent staff and temporary labor. The construction sector employs a large number of workers in Monaco, making it essential to consider solutions to mitigate these effects. We must collaborate with public authorities to anticipate this transition and plan future projects that will sustain activity and preserve jobs.
What feedback are you receiving on this issue from temp agencies?
Temp agencies are starting to voice concerns over a gradual decline in labor demand, echoed by engineering firms as well. Although the market remains relatively stable, signs of a slowdown are becoming apparent. We must stay vigilant about this trend, and the government must take action to prevent a sudden downturn in activity by encouraging new projects in the short term.
Could this decline in construction activity also threaten some Monegasque construction companies?
A prolonged slowdown in activity could indeed present challenges for some businesses. This could lead to cash flow difficulties or even require resizing of their workforces. However, by working closely with the authorities to better plan and distribute projects, we hope to mitigate these impacts. Our role also involves supporting our companies through this transition. Government contracts should continue to play a catalytic role for economic activity and all the benefits it entails.
In summary, what are your expectations from the government regarding the construction sector?
Our expectations are indeed focused on achieving greater visibility for upcoming projects. More effective medium- and long-term planning for public projects would allow companies in the sector to organize more efficiently and anticipate workforce and material needs. Ongoing dialogue with the government remains crucial to ensuring the continuity of activity and the preservation of employment within our industry. Our sector is essential to the economy. The economy as a whole needs a guiding framework to project itself confidently. The stability of state and institutional budgets depends on it.
