The world leader in computer assisted design, manufacture and engineering is a French company, Dassault Systemes. Its core product, CATIA is used in all aspects of the aeronautic and automobile industries as well as many other industries that rely on multiple components, from boat-building to plant assembly. Any non-French component manufacturer that has installed software from Dassault Systemes would find the French market an easier place to penetrate as the software (CATIA, Enovia or Delmia) are found throughout industrial France.
Industrial subcontracting covers a huge spectrum of technical know-how. In France it is typically divided into four product categories: metal, rubber, plastic and electronic, although each category groups together a wide range of specialists. We have outlined below some of the key characteristics of French industrial subcontracting by category or specialisation.
Metal industry in France: There are over 2,000 registered companies that specialise in metal components for industrial subcontracting. The sector has progressed from supplying elementary parts to a real industrial partnership supplying whole systems delivered on a just in time basis. While the auto sector is the primary client, metal subcontractors are found in a wide range of industries. Geographically, the companies are clustered around the major industrial areas of France but the historic centre of the Rhone-Alpes region remains dominant and today employs one employee out of five.
Mouldings industry in France: Plastic and rubber account for 72% of industrial mouldings. Most industries today subcontract all their moulding needs to specialists. Nevertheless, there are fewer than 200 registered moulding companies in France, the majority of which are small. Only 14 companies out of 183 employ more than 100 people. Employees are often highly qualified and trained for both using materials and in design manufacturing. As such, the sector has suffered from competition from countries with lower employment costs.
French electrical components market: Industrial subcontracting in electrical components is dominated by electronic cards, in other words, putting components on integrated circuit boards. The contractors can be involved already at the planning stage and can enjoy a close industrial partnership with their clients.
Increased miniaturisation has led to increasingly complex and automated production techniques. Industrial investments have risen accordingly and the sector is now dominated by the 10 largest suppliers who account for more than half of the turnover. In total, there are 204 companies registered in the sector and they generated combined sales of €2.6Bn in 2004.
Plastic technical components: While technical components make up just 17% of industrial subcontracting in plastics in volume terms, they account for 37% of the value. The automobile sector generates three-quarters of the demand and France counts some 220 plastic technical component manufacturers who specialise in the automobile industry. As the auto sector was a pioneer in outsourcing, today’s car companies have a symbiotic relationship with their industrial subcontractors particularly those involved in plastic technical components...
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