Bordeaux ( Juan di Nella , Unsplash ).
The rate of input cost inflation was the weakest in almost two years , but output charges rebounded as firms decided to pass more costs to clients
forecast period ( 2023-26 ). This will be supported by the government ’ s focus on improving regional connectivity through the development of the country ’ s rail and road transport infrastructure , coupled with efforts to boost energy and manufacturing production .
“ The industry ’ s output over the forecast period will be supported by investments as part of the 30-billion-euro ( US $ 35.8 billion ) France 2030 plan , which was unveiled by the President in October 2021 . The plan focuses on re-industrialising France and becoming a global leader in green hydrogen by 2030 ,” said the market report .
“ Of the total , eight billion euros ( US $ 9.6 billion ) will be invested on renewables , nuclear and hydrogen energy ; six billion euros ( US $ 7.2- billion ) on robotics ; five billion euros ( US $ six billion ) on industrial startups ; four billion euros ( US $ 4.8 billion ) on transport and mobility ; 1.5 billion euros ( US $ 1.8 billion ) on virtual reality projects and another 1.5 billion euros ( US $ 1.8 billion ) on food and
agriculture ,” it added . A downside risk for the industry arises from price pressures owing to shortages of raw materials , as global economic demand has picked up significantly following the easing of COVID-19 restrictions . The ongoing Russia-Ukraine crisis and its impact on the prices of oil and other commodities also represent major downside risks to the industry ’ s short-term outlook . The crisis has led to a surge in energy costs and impacted supply and demand for many vital construction materials and supplies ; this is expected to undermine investor confidence and result in delays for new project starts .
The S & P Global France Manufacturing PMI rose to 49.2 in December 2022 , from 48.9 in the previous month , upwardly revised from the preliminary estimate of 48.9 . The result marked the fourth consecutive contraction for the French manufacturing sector , although at a much softer pace , with output and new orders contracting at their slowest rates since May and June , respectively . Still , employment levels fell for the first time since January 2021 .
Intriguing architecture in Nantes ( Mael Pavageau , Unsplash ).
Image : Shutterstock . com .
According to Markit Economics , on the price front , the rate of input cost inflation was the weakest in almost two years , but output charges rebounded as firms decided to pass more costs to clients . French manufacturers were more optimistic about the 12-month outlook , with sentiment rising to a four-month high .
Analyst Mordor Intelligence expects increasing demand for mechanised cutting equipment in fabrication to be one of the major trends fuelling the growth of the cutting equipment segment of the market in the future . In developed countries like France , due to the shortage of skilled labour , the demand for cutting automation technology ( for fabrication and manufacturing purposes ) is seeing a surge .
“ The French metal fabrication equipment market is fragmented , with huge scope for future companies to enter , as the country is looks forward to more innovative and energy-efficient methods to manufacture and utilise equipment in various end-user industries ,” added the analyst .
From 7-10 March 2023 , the Global Industrie exhibition will once again take place in Lyon as a showcase for industrial innovation with more new developments and solutions .
“ Global Industrie brings together all industry players in one place . Divided into 15 zones , specialising in fields such as digitalisation and automation ; electronics ; additive manufacturing & 3D printing ; measurement ; robotics ; energy and sustainable development ( to name a few ) our 2,300 exhibitors can be relied on to be at this large international gathering ,” the show organiser commented .
See our Global Industrie show preview on page 40 of this issue . n