Manufacturing Growth in France Could Propel it to Number 3 in The World
France is the fourth largest industrial manufacturer in the world. Twenty percent of their GDP comes from industrial manufacturing, and their success shows no sign of slowing. With an annual growth rate of 0.5%, manufacturing serves as a primary source of income and an essential piece of the economy. As the tenth largest economy in the world, Frances boasts a $2,699 trillion GDP and a 1.1% GDP real growth (2016).
One of the keys to French manufacturing success is the diversity of products they produce. With their strength in technological innovation and knowledge, they can produce goods in almost any industry: food products, chemicals and pharmaceuticals, textiles, vehicles, metallurgy, and machinery. Today, we talk about French industries with the most significant contributions to their global standing.
Gourmet Food and Wine
The French have always been famous for their food, but maybe you didn’t know about their food and beverage manufacturing and exports. They produce and export gourmet and artisan cheeses (as the second largest producer after the US), wines (as the second biggest producer after Italy), meats, and bread.
This industry plays a major role in the economy by employing more than 500,000 French workers across more than 11,000 companies. The beverage sector alone contributes more than 11 billion euros in annual revenue. Such products are particularly beneficial because they add value to local agriculture while strengthening trade agreements. Nearly 30 percent of all food and beverage exports are sent outside of the EU, particularly to Asia and North America. Trade agreements continue to open a variety of other relationship possibilities.
Chemicals and Pharmaceuticals
France’s Chemicals and Pharmaceuticals industry occupies sixth place in the world. Their production of basic, specialty, and fine chemicals earn the country prestige only behind China, the US, Japan, Germany, and South Korea. Specifically, France is THE world leader in cosmetics and perfumes.
While they export these chemicals primarily within the EU, they also export to parts of Asia. Nearly 3,500 chemical and pharmaceutical companies employ over 156,000 people to produce around $110 billion Euros in revenue. These sales alone speak for the significance in the French economy.
France produces an average of 4 million vehicles each year. This places them as the 5th largest automotive producer in the EU. However, their innovation is the industry is well-known and highly regarded.
To the same end, the sector is a magnet for foreign investment which makes it a priority industry for the French government. In recent years, they have redirected policies to aid the development of auto manufacturing while benefiting both local and foreign investors.
This year, France continued to maintain their PMI above 50, which firmly places manufacturing as a primary element of their economy. In addition, the data shows a steady rise in production volume, exports, and employment growth. While France currently sits in a strong global manufacturing position, all indicators point to their continuing ability to flourish with innovative technology, skilled workers, and diverse products. With all market trends pointing up, they may be headed to the top three soon.
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