Made in France could generate 2.4 times the economic impact of textile imports, study suggests

A French textile company with production based in France generates returns to the French economy equivalent to 84% of its turnover, compared with 35% for an importer, according to a study commissioned by the Union des Industries Textiles (UIT) and the Union des Industries Textiles & Habillement Nord (UITH).

Conducted by KPMG, the study estimates that a French textile company generates direct economic returns (wages, subcontracting, purchases of premises, and facilities, etc.) amounting to 62% of its turnover. On top of this comes 15% in tax and social contributions, plus a further 7% linked to indirect consumption subject to VAT.

“In other words, 84% of its turnover is reinvested in the national economy as economic and fiscal returns,” note the federations. “The more localised the production, the greater the economic and fiscal returns.”

UIT and UITH highlight the comparison with French importers, whose returns would not exceed 35%. The share rises to 65% for textile companies that combine imports and local production in their product mix. The figure, unsurprisingly, falls to zero for suppliers based overseas.

The study also models what a headline price reduction proportionate to the economic returns generated for the French economy would look like. This reduction could reach 46% for local production, 39% for mixed production, and 26% for a model based on imports.

For the federations, these figures once again underline the pressing need to improve local manufacturers’ access to public procurement, notably by simplifying tender procedures, revising restrictive thresholds, and recognising social return on investment. Such support would, in particular, help to reinforce local multiplier effects.

“A well-structured local production base (workshop networks, work-integration companies, local subcontracting) generates a strong socio-economic impact,” say the sector bodies. They also highlight the cost pressures of energy and imported raw materials, as well as the underutilisation of certain existing French industrial sites.

The French textile industry comprises some 2,400 companies and 58,550 jobs, and generated turnover of €16.3 billion last year, including €13.3 billion in exports.

The UIT recently signed, with 21 other European textile and apparel federations, a joint appeal to the European Commission, calling for measures to be taken against China’s ultra-low-cost clothing giants, including Temu and Shein.