Video. French industry, a possible relocation

The “Made in France” is now a guarantee of quality. Faced with a willingness of consumers to buy locally, this is how many choose to backtrack and return to produce in France. Among them, the company Lucibel, which produces next-generation lighting solutions based on LED technology. This desire, already initiated a few years ago for some companies, is experiencing an exacerbation with the COVID-19pandemic.

History of Lucibel, industry relocated to France – Video Lucibel “The DNA of Lucibel”

French industry, between relocation issues and cost optimization

If companies choose to relocate, it is primarily for a financial issue. The labour and raw materials coming from Asia, in particular, are much more affordable at first glance than employees located in France. But some companies have also found that production abroad is not as beneficial as they thought. Indeed, the shipping time to customers located in France or Europe is considerably longer, when production is done in China for example. Thus, a delivery time of six weeks makes it possible to deliver the goods by boat. This is often too long for clients with immediate needs, which is often prohibitive. Closer to its end customers, a company can more easily deliver them in a short time.

In addition, producing in France allows the French industry to produce more qualitative products. In offshoring countries, quality processes were not always followed to the letter. This situation is deplored by Lucibel, which, by relocating to France, wants to produce quality products. Against all odds, the speed of production is faster in France than in China, for example. French industries benefit from state-of-the-art equipment, which makes it possible to carry out more precise and often automated work. In addition, the cost of shipping is also reduced.

A boon that is both economical and environmentally friendly. Indeed, companies are more part of a CSR approach,eliminating long-haul shipping or shipping. In total, Lucibel’s average cost of production has increased by about 20%. A cost that allows to relaunch even more its activity in France, with localized production, appreciated by customers.

Boosting the competitiveness of businesses in the territory

The COVID-19 crisis acts as a catalyst for companies to relocate to France. Indeed, since the beginning of the pandemic, marked in France by the first containment of March 2020… Customers turn to French companies, and consume more local. To support them in their efforts during this period, the Government has put in place a recovery plan with a total budget of 100 billion euros. Nearly a third are dedicated to the competitiveness of companies. Among the measures and objectives, the Government encourages the relocation of French industries. It is a time-saving procedure, but it will ultimately support the national economy. In April 2020, in the midst of containment, more than 294 relocation proposals were submitted. They mainly concern the health, energy, textile and agricultural sectors.

Airbus French aerospace industry
The French aviation industry is supported by the Airbus Group, the world market leader.

Encouraging the relocation of French industries allows France to regain its autonomy of production. In this period of pandemic, companies rely in particular on online sales to continue their activity, and rely on Made in France to enhance their brand image.

Finally, the relocation of a French industry creates jobs, an essential pillar for the French economy.

Sources:

Lucibel, concrete example of a successful relocation,press release of 5 November 2020

Relocation and Made In France: utopia or reality? – Maddyness – August 12, 2020

Video credit Header: Lucibel

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