The French civil aerospace industry experienced another year of increased turnover in 2006, which is the latest year for which any official figures are available.
Reported (non-consolidated) revenue for the French civilian aerospace industry in 2006 increased approximately 13 percent over 2005 to €21.8 billion (GIFAS annual report 2007), a result of the dynamic air transport market. The market continues to be sustained by strong demand and by fleet renewals favoring aircraft that are more fuel efficient and more environmentally friendly.
France’s aerospace industry manufacturers derive two thirds of their revenues from civilian sector programs, the majority of which are destined for export. This large export market is due to the sustained interest in Dassault Falcon Jet, Eurocopter and Airbus aircraft, all of which have products that now successfully have captured global market share. Well over 60% of French civil aerospace production was exported.
Despite Airbus’ widely publicized delivery and ensuing financial problems surrounding the A380, both Airbus and Dassault Falcon Jet again raised production rates in response to record increased orders for aircraft. Six manufacturers account for the majority of the French market: Airbus (large commercial aircraft), Eurocopter (light-to-heavy helicopters), Dassault Falcon Jet (high-end business jets), ATR (passenger and cargo turboprop aircraft for regional transport), Socata (light aircraft and business turboprops), and Reims Aviation Industries (light aircraft). With the exception of Reims Aviation, these manufacturers are owned in part or entirely by the same parent company, EADS (European Aerospace Defense & Space). Created in 2000, this consortium dominates the civil aviation market.
For the tenth consecutive year, the value of orders for aircraft outweighed industry revenues (deliveries), confirming the long-term growth of this market. The continued weakness of the dollar against the euro, a willingness on the part of procurement executives to purchase in dollars and increased production rates offer opportunities for US firms.
Best Prospects/Services
The best prospects for American aerospace firms in this market continue to be associated with the manufacturing of new aircraft, notably, the Airbus A350 XWB, the A380 and Airbus Military Company’s A400M (to a lesser degree as it is a European military program). Many OEM and equipment manufacturers have adopted a “U.S. dollar” strategy on existing and new programs to take advantage of the cost savings offered by the exchange rate. In addition, it is important to note that with the new cost reducing strategy called Power 8, Airbus is reducing the number of its direct suppliers by increasing the sourcing of whole assemblies and work packages. Exceptions to this trend may be made in cases where a potential supplier is able to propose technical innovations, or where delivery or quality problems exist.
Opportunities
The year 2008 will see a continuation in a dynamic cycle of investments that support innovating projects. Increased accessibility to high Internet bandwidth and wireless solutions will also boost demand for systems integration, especially in the field of E-commerce, which is anticipated to grow by 50% in 2007. Promising opportunities are therefore available to American firms seeking to export to France, especially for those that provide packaged software as U.S. firms already control 70% of this market.
Resources
Paris Air Show – June 2009
Website: [http://www.paris-air-show.com]
French Aerospace Industries Association
Website: [http://www.gifas.asso.fr]
Embassy U.S. Commercial Service Trade Specialist:
[Cara.Boulesteix@mail.doc.gov ]
Phone: (+33-1) 43 12 70 79
Website: [http://www.buyusa.gov/france/en]
For data tables and additional information corresponding to this prospect please contact: Cara.Boulesteix@mail.doc.gov
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