The reindustrialisation efforts in France have significantly slowed in 2024, according to the state’s industrial barometer released on Thursday. It is the first time the indicator has turned negative since its creation in 2022.
The barometer is produced by the Ministry of Economy and recorded 114 new factory openings last year, while 119 factories closed – a net loss of five factories. Including substantial changes to existing industrial sites (152 significant expansions and 58 significant reductions), the total net gain is +89 sites. But this is half (-53%) of the gain seen in 2023.
This publication coincides with an industrial-focused sequence for the government, as Prime Minister François Bayrou visits the Global Industrie exhibition in Lyon’s industrial sector on Thursday afternoon, along with Industry Minister Marc Ferracci and Labour Minister Astrid Panosyan-Bouvet.
Amid Europe’s military rearmament due to the United States’ disengagement from Ukraine, Bayrou will advocate for both national and European industrial sovereignty before visiting an Alstom TGV site in La Rochelle on Friday, AFP reported.
A bleak outlook
Green industries saw strong growth in 2024, particularly in energy and circular economy as well as health and agri-food sectors, Ferracci’s office stated.
Conversely, the automotive sector struggled, along with energy-intensive sectors such as plastics and mechanics. “The reindustrialisation process is slowing down, but it continues,” the ministry stated.
It attributes the slowdown to a persistently bleak economic climate in France, Europe, and globally, coupled with geopolitical instability that creates uncertainty for economic actors, potentially delaying substantial investment decisions.
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Another barometer, from the consulting firm Trendeo, confirms the downturn, showing a net growth in industrial employment, though it has decreased by over 60% in 2024, totalling 31,223 net jobs compared to 81,637 the previous year.
“This is due to a combination of rising job cuts (+77%, with an additional 28,000 jobs lost) and declining job creation (-18%, with 22,000 fewer new jobs),” according to a study published on Tuesday.
“Other indicators from state agencies forecast a continuation of this slowing trend into 2025,” the barometer reports.
