Can industry be reshored to France?
Many people are calling for industrial reshoring to France. This reshoring would be of two kinds: Government-led "strategic" reshoring; "Economic" reshoring decided by companies. Governments do not want to depend on other countries, particularly emerging countries, for the production of "strategic" goods. Companies want to reduce the fragility of global value chains. But the problems related to industrial reshoring to France from emerging countries should not be underestimated: First, the deterioration in France's industrial foreign trade is not due to trade with emerging countries, but primarily to trade with Europe; the weight of French imports from emerging countries has increased significantly, but the weight of French exports to emerging countries has also increased significantly; Industrial job losses in France are mainly due to productivity gains, not to offshoring to emerging countries; Also , production costs are much higher in France than in emerging countries; France has specialised in high-end product ion ; it is therefore "impoverishing" to reshore lower-end production. The example of medicines and active ingredients is interesting here; Returns to scale are growing: companies have to be big to be efficient; Last , we must reflect on the limitations to reshoring due to France's specific problems: skills, efforts to modernise companies.