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France's Industrial Renaissance

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France's Industrial Renaissance FRANCE’S INDUSTRIAL RENAISSANCE #GETTINGTHERE 2 FRANCE’S INDUSTRIAL RENAISSANCE FRANCE’S INDUSTRIAL RENAISSANCE #GETTINGTHERE FRANCE’S INDUSTRIAL RENAISSANCE #GETTINGTHERE 4 FRANCE’S INDUSTRIAL RENAISSANCE 5 EDITORIAL EDITORIAL France is at a defining moment. Our assets are stronger than ever: a highly-skilled workforce, a world-class infrastructure, and a location at the heart of Europe, the largest economic market in the world. Our economy is stabilized, diversified and ready to grow strong again. Combining our unique industrial base, technological edge and leadership in services is key to our complete recovery. We’ve got what it takes to get back in the game. In fact, we are already back. 6 FRANCE’S INDUSTRIAL RENAISSANCE TABLE OF CONTENTS 08 #CHECKED 11 Improved competitiveness 12 Greater flexibility 27 13 New resources More stability 14 #THEWAYTOGETTHERE 16 We have what it takes 18 Solid know-how 20 29 Rolling up our sleeves Smart cities 22 #9SOLUTIONS 25 What is a “solution”? 31 Eco-mobility 7 TABLE OF CONTENTS 33 39 Next generation transportation Internet Of Things (IoT) 35 41 Medicine for the future Digital safety 37 43 The data economy Healthy and customized food #CHe cKED 9 #CHECKED #CHe cKED Competitiveness Flexibility Stability 10 FRANCE’S INDUSTRIAL RENAISSANCE 11 #CHECKED Improved competitiveness READY TO EXPAND OUR MARKET SHARE. €40 billion ENHANCED PRICE COMPETITIVENESS: In three years’ time, we have reduced social charges and introduced tax breaks for businesses that total more than 2 percentage points of GDP – an absolute first. €37.40 (Fr) vs €38.90 (Ge) HOURLY LABOR COSTS FOR INDUSTRY ARE NOW LOWER IN FRANCE THAN IN GERMANY1. €5 billion TOTAL AMOUNT SAVED IN 2014 BY FIRMS UNDER FRANCE’S GENEROUS INNOVATION TAX CREDIT SCHEME. 1. Source: Eurostat, 2015 12 FRANCE’S INDUSTRIAL RENAISSANCE Greater flexibility FRENCH FIRMS ARE BETTER EQUIPPED TO HANDLE THE CHALLENGES OF A GLOBAL ECONOMY. 4 THE NUMBER OF DAYS IT TAKES TO SET UP A BUSINESS IN FRANCE (COMPARED WITH 6 IN THE UK, AND 14 IN GERMANY1). Entrepreneur of the Year FOR THE FIRST TIME THE EY ENTREPRENEUR OF THE YEAR AWARD WAS GIVEN TO A FRENCH PERSON: MOHED ALTRAD. LA FRENCH TECH: KNOWN THE WORLD OVER. Number one European Delegation at the CES in Las Vegas (2014, 2015). Winner of the FAST EMEA for the 3rd year in a row. A modernised labor market WAGES AND WORKING HOURS CAN NOW BE NEGOTIATED WITHIN COMPANIES removing economic roadblocks thanks to the Macron bill. 1. Source: World Bank. 13 #CHECKED More stability A STABLE TAX AND LEGAL ENVIRONMENT IN WHICH BUSINESSES CAN THRIVE. X2 LONG TERM SHAREHOLDERS ARE REWARDED WITH DOUBLE VOTING RIGHTS. €50 billion IN PUBLIC EXPENDITURE CUTS OVER 3 YEARS. €47 billion IN INNOVATIVE PUBLIC INVESTMENT PROGRAMS OVER 5 YEARS (2.3% OF GDP). 9 solutions FOR FRANCE’S INDUSTRIAL renaissance. #THEWAYTOGETTHERE 15 #CHECKED #THEWAYTOGETTHERE We have what it takes Solid know-how Rolling up our sleeves 16 FRANCE’S INDUSTRIAL RENAISSANCE We have what it takes AN IDEAL location France sits at the heart of an affluent economic market of 500 million consumers. CNRS The world’s largest scientific institution in terms of publications (ahead of Harvard). 36 The number of French firms in Fortune’s 500 list – compared with 32 for Germany. 1 17 #THEWAYTOGETTHERE 2 1. International CDG Paris Airport welcomes 65 million people every year. 2. France is at the centre of Europe. 3. Here, a robotic plasma jet makes a composite repair. 3 18 FRANCE’S INDUSTRIAL RENAISSANCE 2 Solid know-how Our “industry of the future” policy is the cornerstone of France’s industrial renewal. The goal is to encourage every industrial firm, regardless of its size, to move to the next stage of digitalisation. Each year, thousands of companies are offered hands-on solutions to building actual digital plants. We take a three-fold approach: 1. Production of a fighter jet in Argenteuil. 2. Alphasat. 3. High-speed vessel for civilian use. 4. Intelligent, hyper- connected, and responsive: we’re already turning the plant of the future into a reality. 1 19 #THEWAYTOGETTHERE INDUSTRY + SERVICES = A WINNING PARTNERSHIP These two sectors are now inseparable. For example, thanks to digital-based services, in the near future, automobive firms won’t just sell cars, they will also offer mobility-based transport and travel solutions. CUSTOMER-CENTRIC A successful industry is one that anticipates consumers’ needs – and exceeds them. EYES ON THE PRIZE France’s industry has to become even more global. 3 4 20 FRANCE’S INDUSTRIAL RENAISSANCE 2 Rolling up our sleeves WE’RE WELL UNDERWAY. 1 1. Clean-room inspection of a hemispherical resonator gyroscope using a stereoscopic microscope. 2. wooden construction near Paris. 3. Bridget, the Mars Rover prototype. 21 #THEWAYTOGETTHERE ADVANCING TOGETHER In France, companies, entrepreneurs, central government, local authorities and trade unions all share a single goal: the revival of French industry. INVESTING Return on investment is enhanced by up to 15% thanks to public subsidies. ADAPTING €30 billion (1.5% of GDP) invested every year in skill-building for France’s workforce. 3 4 #9SOLUTIONS 23 #CHECKED #9SOLUTIONS THEY ARE DESIGNED to THRIVE ON FRANCE existing assets to MEET THE FUTURE’S global CHALLENGES. New resources Smart cities Eco-mobility New generation transportation Medicine for the Future The data economy Internet of Things (IoT) Digital safety Healthy and customized food 25 #9SOLUTIONS What is a “solution”? REBUILDING OUR ECONOMIC CAPACITY BASED ON 5 PRINCIPLES: MEETING FUTURE CHALLENGES We don’t know exactly what the future holds. But we do know that we will need new resources, new means to cope with urbanisation, eco-mobility, and so on. BUILDING ON OUR STRENGTHS France needs to build on its comparative advantages. Within five years, we can be number one in Europe – if not the world – in each identified solution. LARGE-SCALE PUBLIC INVESTMENT(€3.5 bn) To trigger at least 3 times more private investment . SOLUTIONS FROM THE PRIVATE SECTOR Markets know best – each solution will be implemented by prominent, experienced French industrial entrepreneurs. CONCRETE AND MEASURABLE GOALS Paired with milestones to achieve. This is not fiction; it is the start of France’s industrial renaissance. 26 FRANCE’S INDUSTRIAL RENAISSANCE 27 #9SOLUTIONS New resources THE CHALLENGE Growing global consumption of resources is not sustainable. We need more efficient and more ecological means of production. goals Double the use of plant-based commodities in France’s chemical industry by 2020. Create 20,000 jobs in France by 2020 through developing new materials recovery facilities (plastics, construction waste, carbon fibre, circuit boards, etc.). 37% EXPECTED GROWTH IN THE BIO-BASED PRODUCTS MARKET BETWEEN 2012 AND 2020. 2nd place FRANCE’S POSITION IN EUROPE IN TERMS OF BIOFUEL PRODUCTION AND SIZE OF ITS CHEMICAL SECTOR. 28 FRANCE’S INDUSTRIAL RENAISSANCE 29 #9SOLUTIONS Smart cities THE CHALLENGE Explosive urban growth creates environmental challenges for cities: fighting global warming, controlling urbanization, reducing energy consumption and managing waste are all critical to the development of smart cities keen to reduce their environmental footprint. goals 110,000 local, non-offshorable jobs by 2020: +75,000 jobs in energy retrofits for buildings, +16,000 jobs in water management, +9,000 jobs in wooden construction and +10,000 jobs in smart grids; High-value-added jobs to help France meet its export target of €100bn in revenue by 2020. EVERY DAY, AN AREA THE SIZE OF PARIS (105KM²) IS URBANISED IN THE WORLD. 10 NUMBER OF FRENCH FIRMS WHICH ARE ALREADY GLOBAL LEADERS IN THIS SECTOR. 30 FRANCE’S INDUSTRIAL RENAISSANCE 31 #9SOLUTIONS Eco- Mobility THE CHALLENGE To allow people to move around quickly, safely and inexpensively while having the smallest possible impact on the environment, our vehicles must become smarter, more connected and more autonomous. goals 20,000 additional charging points by the end of 2016; a 30% reduction in CO2 emissions for new vehicles produced in France by 2021. 2 FRENCH AUTOMOTIVE FIRMS IN THE GLOBAL TOP 3 IN TERMS OF REDUCTION OF VEHICLES CO² EMISSIONS. BLABLACAR A FRENCH “UNICORN” COMPANY, EUROPEAN LEADER IN THE FIELD OF CARSHARING. 32 FRANCE’S INDUSTRIAL RENAISSANCE 33 #9SOLUTIONS Next Generation Transportation THE CHALLENGE France has traditionally held a strong position in transportation. However, to keep this lead in the face of growing competition from emerging industrial players, we need to reinvent transportation modes and propose innovative solutions that are both environmentally- friendly and economically competitive to meet growing demand from emerging countries. goals Next-generation TGV (France’s high-speed train): 25% more capacity, 30% reduction in production costs, maintenance costs cut by 25%; Reducing the amount of fossil fuels burned by ships by 50% and cutting the total environmental impact of their lifecycle in half. 350,000 NUMBER OF PEOPLE IN FRANCE EMPLOYED BY THE AERONAUTICS INDUSTRY, GENERATING €40 BILLION IN TURNOVER ANNUALLY. 3rd place FRANCE IS HOME TO THE WORLD’S THIRD LARGEST RAIL INDUSTRY. 61… …AND COUNTING! THE NUMBER OF DRONE MANUFACTURERS. 34 FRANCE’S INDUSTRIAL RENAISSANCE 35 #9SOLUTIONS Medicine for the future THE CHALLENGE In the near future, France will have to cope with many challenges in this field : an aging population, chronic illnesses and the need for innovative solutions to provide everyone with affordable, high-quality healthcare. goals IPOS of France-based firms. Become the European leader in smart medical devices; Reverse France’s balance of trade in terms of medical technologies within a decade. 20% AVERAGE ANNUAL GROWTH WORLDWIDE THROUGH 2020 OF THE PHARMACEUTICALS & BIOTECHNOLOGIES MARKETS. FIRST place FRANCE IS EUROPE’S TOP BIOTECHNOLOGIES PRODUCER. 36 FRANCE’S INDUSTRIAL RENAISSANCE 37 #9SOLUTIONS The data economy THE CHALLENGE The development of digital technologies and exponential growth in smartphones, tablets, computation capabilities and other connected devices generate huge quantities of data.
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