Focus on the industrial sector

The current socio-economic context has led to one observation: the fragility of French industry. Indeed, recent crises (Covid-19, war in Ukraine...) have shown relationships of dependence very strong in relation to other countries, resulting in risks of shortages, supply difficulties and rising prices. However, certain actions have been initiated to revive the industrial sector, which despite everything remains provider of jobs.

State of play.

Key industry figures

L'industrie en pleine mutation

Job creation

Key figures for French industry

Industry is a vast sector of activity, comprising two areas :extraction (extraction of mineral products) and, most importantly, manufacturing (transformation of goods, repair, installation of equipment). The latter includes various sectors of activity such asagri-food, textile production, the chemical or pharmaceutical industry, metallurgy, the automotive industry, aeronautics or the manufacturing of IT, electronic and optical products.

France has 260,000 companies in industry, 90% of which are SMEs and VSEs, representing 3,115,000 direct jobs and 4,500,000 indirect jobs. Industrial jobs are evenly distributed across most of the country, with the exception of Ile-de-France (7%) and the South (5-10%), which are more focused on the tertiary sector (services, tourism). Industry's share of French exports is 74%.

It's not a question of the industry's share of exports.

Industry on the move

After a downturn in activity and strong international competition, French industry has a number of issues and challenges ahead of it.

State of play and deindustrialization

For nearly 40 years, there has been a progressive deindustrialization, due to several factors including the relocation of certain companies, automation of tasks industrialization, or the outsourcing of cross-functional functions (HR, R&D, marketing, logistics...). Industry has gradually turned tohigh added-value services and the tertiary sector in order to adapt to new consumption patterns, more individualized and more focused on the purchase of goods and services.

However, the context of the global crisis seems to have accelerated awareness of toohigh interdependence of France vis-à-vis foreign industries, with the consequences that this implies: shortages of raw materials, high transport costs and shortages of equipment and components, particularly in the automotive industry...

Relocation

In response, the France relance, France 2030 plans encourage a revival of the dynamic of relocations and reindustrialization. Among the measures taken is a reduction in production taxes for companies.

Thanks to the stimulus plan of 2021, relocations have risen sharply, from 30 in 2020 to 87 in 2021, an increase that subsides in the first quarter of 2022. This dynamic has boosted job creation by +4.5%. What's more, with 120 new plant creations(176 creations and 56 closures), 2021 also set a record.

This relocation policy is influencing the economy and consumption patterns. Thus, nearly 9 out of 10 French people affirm their strong attachment to French industry and Made in France. By being closer to markets, industry strengthens its agility while acting on thereduction of transport costs and times, preservation of the environment, and, ultimately, a increased fluidity of supplies.

Reindustrialization and technological innovation

Today, manufacturing, which now accounts for just 10.1% of GDP, is well below the 16% European average. That's why it's essential to speed up the digital and ecological transformation so that industrial activities provide real added value, both for the territory and for exports.

While some industrial activities have disappeared due in particular to automation, new jobs have appeared (data scientist, industrial programmer, cobot engineer, additive manufacturing engineer, virtual/augmented reality engineer..) andtechnological innovations are more topical than ever to preserve the competitiveness of French industry.

The study carried out by DARES and France Stratégie, "Les métiers en 2030", highlightsthe importance of research and development in contributing to the growth of industry, particularly in more technological fields such as transport equipment, IT or electronic products, pharmaceuticals and medical irradiation, electromedical and electrotherapeutic equipment.

Job creation

Like all business sectors, industry has also benefited from the economic recovery in 2021 and continues to recruit.

Increase in job creation in 2021

In industry, it's the leather and footwear sector that has created the most jobs in 2021, with 5513 net new jobs in leather goods. Next came food industries, with 5169 net jobs, then electrical equipment, with 3,245 net job creations (in household appliances, especially), and automotive industry, with 1,931 net jobs.

Prospects for 2022

According to Pôle emploi's latest BMO survey, industry is among the sectors planning to recruit the most in 2022, with 9.2%, of hiring intentions, up +24% on 2021, linked to projects in metallurgy, electrical, electronic and IT equipment. In the first quarter of 2022, this rise was confirmed at +0.1%, representing 3,100 additional jobs compared to Q4 2021.

Jobs are available in production and maintenance, at all levels. Particularly sought-after trades include boilermakers, sheet metal workers, tracers, locksmiths, metalworkers, skilled blacksmiths, but also, at the operational level, line and equipment operators, machine setters, or industrial pipefitters.

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Finally, with 70,000 positions still vacant in May 2022, the industry still has plenty of room for growth ahead of it.