Survey of the international activity of French businesses

French companies back on the export track, but with reduced visibility and shrinking order books.

18/06/2020

The key takeaway from this new edition is that 65% of businesses surveyed in May 2020 say they continue to export, even in a reduced capacity, compared with 55% the previous month (gain of 10 points in one month). Concerning businesses involved in exports for more than 30% of their overall activity, this rate stands at 71%; this share increases to 81% for those surveyed in May (+13 points compared with the month of April). This highlights a continued momentum for international business.

 

For these businesses which continue their export activities, the main difficulties encountered are of two types: the lack of visibility on the future of the markets, which has gone from 30% to 37%, and the significant reductions in orders mentioned in 25% of the interviews, compared with 21% last month. The logistical problems encountered tend to be resolved (20% compared with 27% in April).

 

It should be noted that the primary challenges vary depending on the business sector. There has been a lack of visibility for both the Industries and CleanTech (40% of businesses surveyed) and the Tech and Services sectors (up to 60% in tech). The drop in orders has been seen more acutely in the AgriTech sector (33% of businesses for wines and spirits; this rate increased from 40 to 48% for confirmed exporters). Lastly, logistics problems have also been reported (26% of businesses), which have disrupted activity within the Art de Vivre sector. These challenges can be explained in particular by a very gradual reopening of points of sale abroad, the selling off of stock and disruption to collections. In terms of healthcare, the indicators are more positive, despite some financial difficulties mentioned among small businesses.

 

“In what is a global health and economic crisis, our French businesses are maintaining their international activities. Our mission is to support them, inform them about changing markets so that they can, tomorrow, regain their positions and seize new export opportunities.  Our main competitors are already on a war footing. All TFE teams, in France and around the world, are mobilized to ensure that our businesses emerge as winners!”

Christophe Lecourtier, Chief Executive Officer at Business France

“Nearly 1,000 businesses based in the Paris/Ile de France region were surveyed across our regions as part of the Second Team France Export survey, by a joint team of international advisors from the Regional Chamber of Commerce and Industry and Business France. Their aim is to inform and support business leaders, particularly VSEs and SMEs, in relaunching international activities for their businesses, by best understanding their current operational difficulties. There is currently special monitoring in place of the key sectors in the Paris/Ile de France region, such as Tech and Services, Industries and CleanTech, Art de Vivre and Healthcare.”

Didier Kling, President of the Chambers of Commerce and Industry in the Paris/Ile de France region

“Many businesses have maintained their positions and their export projects, despite the Covid-19 crisis. We must now guide them and help them to think about the world of tomorrow, adapting our products and services to new distribution methods and sustainable development issues. The recovery starts now.”

Pedro Novo, Executive Export Director at Bpifrance

 

Team France Export
The union of public key players supporting the international development of French businesses and private key players offering solutions, within a “Team France Export”, aims to offer SMEs and mid-size companies in France a clear, efficient and adapted system. It offers a continuum of solutions, from preparation to international launch: from the French regions, in which there are “one-stop shops for exports,” to foreign markets, where a “single Team France Export correspondent”** will guide SMEs towards solutions that meet their needs.

* These one-stop shops in the regions combine the strengths of the founding members of Team France: the regions, the Chambers of Commerce and Industry, Bpifrance and Business France.

** The single Team France Export correspondent abroad can be Business France or a private key player in a certain number of countries targeted by public service concessions.

 

 

 

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