Is industrial relocation a reality or utopia?
The decade of deindustrialization (differing from countries according to policies) is rooted in competitiveness for the need to produce at lower costs in the context of increasing globalization. This is what has provoked industrial transfers to low-cost countries. This trend has been amplified by the need for "local production" in countries that until then were not quite industrialized.
So is industrial relocation a reality or utopia? Bruno Nicolas, Brand Director of Actemium, explains…
“Today, there are 5 factors that make the prospects of industrial relocation a reality in Europe:
• Decrease of the production cost and increase of the labor cost is stronger in the “low-cost” countries
• Evolution of technologies, particularly in robotization
• The urgency of climate change
• Public support, such as the France Relance initiative
• And new tendencies of economic sovereignty amplified by the health crisis
Here are examples of this in 3 areas: the global “localization” of gigafactories in Europe for the production of batteries for electric vehicles, the relocation in France for the production of active ingredients for the pharmaceutical industry, and an emblematic relocation in the textile sector that has relocated almost everything; FashionCube, which brings together the textile brands of the Mulliez galaxy which will produce jeans in Neuville-en-Ferrain by the end of the year.”
For more information, please contact Bruno Nicolas.