Industry bridging the regional divide

Urban France vs. rural France. Over the past few months the divide between the regions seems to have grown wider. How can we generate growth outside the major urban centers? How can we create jobs for all? How can we provide people in rural areas with the same prospects as those living in urban centers? I believe that the industrial sector holds part of the solution.

Over the past few decades, the word ‘industry’ has taken on a relatively negative connotation, often seen as synonymous with job losses and dwindling attractiveness for many industrial regions. Yet, there are some encouraging signs. For the first time in 10 years, companies are starting to create jobs in the industrial sector again in France: more than 18,000 in 2017 and more than 17,000 in 2018. In 2018, more factories opened in France than closed. This upward trend is obviously very positive and needs to be sustained, because it helps reduce the urban-rural divide currently undermining our country, as it is in the United States and the United Kingdom.

Our plants are the economic lungs of the regions. They breathe life into the surrounding towns, create potential, support the non-profit and entrepreneurial segments, and, more broadly, provide a foundation for the entire local ecosystem.

 Saint-Gobain is a perfect example. The Group’s 180 industrial sites in France employ 17,000 people. They are embedded in their respective regions and contribute actively to creating jobs and local supply streams. In 2016, we estimated that for each direct Saint-Gobain job, almost two indirect jobs were created in the employment catchment areas.

 Our Group has adopted a partnership approach in working towards these goals. We have introduced a raft of initiatives. For example, our training centers help develop the skills of the local contractors who use our products. The Group also helps grow and sustain SMEs in the regions, in particular through its actions to support skills and provide soft loans. Over the past 10 years, this approach has sustained 3,000 jobs.

 Our commitment is logical. Just as a plant results in a range of positive externalities for a region, so its entrepreneurial spirit is vital for the plant. Saint-Gobain needs efficient SMEs, qualified labor and dynamic regions.

 Our commitment at this micro-local level also closely reflects our type of production. Many of the materials Saint-Gobain designs do not travel far between where they are manufactured and where they are sold. This economic and ecological choice demands local production and very dense distribution coverage, which we have in our distribution brands. In fact, there is one of our 2,200 sales outlets every nine kilometers on average in France.

 Performance is our main driving force. Our commitment also leads us to innovate and invest massively. For example, in 2017, Saint-Gobain reopened its flat glass production line in Aniche-Emerchicourt, northern France, closed for four years for refurbishment and upgrade. The total investment was  €30 million for an expected lifespan of 20 years.

Other similar investments are nearing completion. Several million euros are being spent on a new blowing glass wool production line at the Isover plant in Chemillé, northwest of Cholet, western France. It is scheduled to come on line in mid-2019.

 Yes, it is possible to produce efficiently in our regions in France. And I say that from the standpoint of the CEO of a global group. France’s industrial sector has everything it takes to succeed. With the rise of Industry 4.0, our regions have a unique window of opportunity to regain their rightful place among the world’s industrial champions. 

To succeed, it is crucial we unite the goodwill of all stakeholders by bringing them to the same table: companies, startups, technology suppliers and academic partners. To succeed, we need to step up training to advance skills. In tomorrow’s industry, the battle of skills will be decisive. According to a report by Dell and the Institute for the Future, 85% of jobs in 2030 do not even exist today. Between automation and robotization, we constantly have to capitalize on technological and digital innovations to get back into the lead.

Finally, this aim also requires that the State pay closer attention to the competitiveness of companies weighed down by higher production taxes and contributions than those levied on our neighbors.

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France’s future is being decided today.

Our French regions have a long-standing industrial culture. They have the knowledge and the will. We have what it takes to consolidate an industrial and efficient France ranging across the entire country, reconciling France as a whole, and all French people.