REGIONAL REPORT
2026, activity was expected“ to continue to grow markedly in industry, but more moderately in services and construction.”
“ Business leaders expect industrial production to remain strong in February, particularly in computer, electronic and optical products, and to strengthen in electrical equipment and aeronautics. It is expected to pick up in the automotive sector after a month of January that was deemed weak. It should remain stable in non-metallic mineral products, machinery and equipment, and metal and metal products,” commented the bank’ s report.
“ In construction, contractors forecast a significant slowdown in activity, with a slight decline in structural works following January’ s catch-up. Finishing works are expected to continue to perform well, still underpinned by renovation work,” it continued.
“ At the end of January 2026, order books were still deemed to be weak in most sectors except aeronautics, where they were bolstered by defence and aerospace contracts( including international contracts). In construction, order books recovered in finishing works but continued to decline in structural works,” it added.
The uncertainty indicator, it highlighted, rose slightly in industry, which is traditionally more sensitive to international developments and continues to be affected by recurring geopolitical and trade tensions.
According to a webinar run by Natixis Corporate and Investment Banking in January this year, the success of energy policy in curbing inflation, alongside France’ s resilience to the trade shocks of 2025, provides clear signals of underlying economic health. France offers a diversified skilled workforce, affluent consumers, high-quality infrastructure and reliable low-carbon energy supply.
“ As a leading defence manufacturer, France is strongly positioned to benefit from Europe’ s increased defence spending in 2026. Economic risks are likely to remain concentrated on domestic political uncertainty, particularly around the reforms needed to meet the 3 % budget deficit target— a challenge that is expected to remain a persistent source of uncertainty as the 2027 presidential election approaches,” said the webinar.
An eye on manufacturing
Global Industrie will take place from 30 March-2 April 2026, at Paris Nord Villepinte( France). With 2,500 exhibitors across 100,000m ² and more than 3,000 machines in operation, the largest“ factory in France” reflects a country that continues to attract international industry.
French industry has embraced the low-carbon transition, with further decarbonisation ongoing. Across the country, R & D projects and
French technology on display at Global Industrie in Lyon last year.
The steel fabrication market in France is a dynamic competitive landscape characterised by a blend of innovation, strategic partnerships and regional expansion
Image: Karim Manjra, Unsplash. regional infrastructure initiatives are accelerating. Tightening regulations( such as the EU’ s CBAM) are forcing a shift toward decarbonised production. This is expected to increase the cost of raw materials but drive innovation in“ green” metal products.
After three and a half years of collaboration and innovation, the Decisiff programme( Development of Competitiveness through Strategic Innovation for the Future of Foundries) is paving the way for a more agile and sustainable French foundry industry ready to face electrification challenges. Funded by the national recovery plan, its objective is to accelerate the sector’ s transformation. Its objective is to modernise processes, strengthen competitiveness and reduce environmental impact.
Local territories are also driving the transition, illustrated by Marseille’ s plan to transform the Fos-sur-Mer industrial port zone into a multi-energy maritime hub. The green economy is now spreading across all layers of industry. Geopolitical tensions and the“ weaponisation” of supply chains for critical materials( like rare earths) are prompting French firms to prioritise local sourcing and diversified recycling of raw materials.
“ The steel fabrication market in France is a dynamic competitive landscape characterised by a blend of innovation, strategic partnerships and regional expansion. Companies are increasingly localising manufacturing to mitigate supply chain disruptions and enhance responsiveness to regional demands. This approach appears to be particularly effective in a moderately fragmented market structure, where the influence of key players is pronounced yet allows for the emergence of smaller, agile firms,” commented analyst, Market Research Future.
“ Competitive trends in the steel fabrication market are increasingly defined by digitalisation, sustainability and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the need to collaborate. Looking ahead, it is anticipated that competitive differentiation will shift from traditional price-based strategies to a focus on innovation, technological advancement and supply chain reliability. This evolution suggests a transformative phase for the industry, where adaptability and forwardthinking strategies will be paramount,” it added.
The analyst expects the steel fabrication market in France to grow at 3.41 % CAGR from 2025 to 2035, driven by infrastructure development, technological advancements and increasing demand for customised solutions. New opportunities, it says, lie in investment in automated fabrication technologies to enhance efficiency, the development of ecofriendly steel products to meet sustainability goals and expansion into emerging markets through strategic partnerships and local production facilities. n
30 | ismr. net | ISMR March 2026