Has France really turned to re-industrialisation? Pressed by the recent geopolitical and climate crisis, the government wants to show that it has made industry the main focus of its economic policy. On the occasion of the annual global industry exhibition, Ministerial Representative, Roland Lescure, unveiled the results of the new barometer this Wednesday. Led by the Directorate General of Enterprises (DGE), the survey shows that the balance of factory openings and closures in 2023 was 201 compared to 176 in 2022.
This census takes into account the net number of industrial sites and major expansion projects. Focusing only on factory openings, Bursey recorded 170 new sites in 2023 compared to 139 in 2022. In contrast, DGE closed 113 sites last year compared to 90 in 2022.
“The results of this first industrial barometer confirm the dynamism of France’s reindustrialization and cool the defeatist spirit of some in the process.” The minister reacted to X.
With companies preparing for months of normal operations, this unprecedented indicator risks close scrutiny by the Elysee, which has been criticized for slippages that are more significant than those currently recorded on public accounts. Previously, only the Trendeo firm performed this type of analysis every year.
“Trandio had a methodological bias, as it considers logistics warehouses”The servants of the Minister of Industry explain.
“The firm works with open source, some openings and closures came under the radar,” He adds.
Agri-food is in the lead, metallurgy is in the red
The agri-food sector weighs heavily in French industry. The balance is mostly positive with a net opening of 54. Next come construction (25 net starts), textiles (23) and health (17).
“The dynamics we’re trying to initiate in health seem to be working”The minister’s team was delighted.
The outbreak of the health crisis in 2020 cast a harsh light on France’s extreme dependence on basic products (masks, hydroalcoholic gel) and medicines needed to treat patients. Bercy also welcomed the positive net balance (13) of the opening to green industry and the circular economy.
In contrast, the metallurgy sector is in recession with more destruction than construction of sites. It is also the only sector of the barometer to show a negative balance. Last year, according to INSEE, production in the metallurgy and steel industry fell sharply. Production has started to pick up again from a low in June. But without reverting to its long-term average level.
Auvergne-Rhône-Alpes at the top of the table
Geographically, the Auvergne-Rhône-Alpes region (+73) largely dominates the ranking. It is followed by Nouvelle Aquitaine (+30) and Normandy (+24). On the other hand, Centre-Val-de-Loire (0), Corsica (-1) and especially Hautes-de-France (-9) are losing momentum. In 2023, the latter went through huge difficulties as the Valdunes company, the last French manufacturer of train wheels. An agreement was eventually reached with Europaplasma for the takeover.
Many other sites are in areas of unrest. The aluminum plant in Dunkirk, the largest foundry in Europe, must turn to decarbonisation as quickly as possible. The necessary change has been pushed by the head of state himself as part of a plan for 50 industrial sites.
“The region has experienced closures in traditional areas of industry, but it is also where the opening of battery gigafactories is concentrated, the Renault electric vehicle hub in Doi and battery components in Dunkirk”We emphasize in the minister’s office.
A long road to reindustrialization
At the Global Industry Show, the Minister of Industry did not fail to congratulate himself on his results. The fact remains that re-industrialisation still has a long way to go. The latest PMI index, a leading indicator widely watched in economic circles, shows that activity in French industry is still in negative territory. In March, the index recovered slightly but remained in contraction for nearly a year.
At the macroeconomic level, other statistics show that industry’s place in the French economy is still well below its 1970 level. At the end of 2022, the industry’s weight in GDP had painfully increased to 13.3%, according to the latest data from INSEE. , a level even lower than in 2017 (13.8%), when Emmanuel Macron came to power.
On the employment front, the bleeding seems to be slowing down. Between the beginning of 2017 and the end of 2023, industrial employment in France increased from 3.14 million to 3.27, or about 130,000 jobs in net, according to INSEE. But job creation in Made in France is much less dynamic than in the tertiary sector and is a far cry from industrial employment in the 1970s (around 5.5 million). In total, France has destroyed more than 2 million industrial jobs in fifty years. The battle for reindustrialization may take a long time yet.
