G. Cailloux: “Logistics is a crucial driver of competitiveness for our industry”

Geoffroy Cailloux : Under the France Relance plan, we have introduced three direct support schemes for productive investment, centered on four key priorities : (re)shoring, modernization, innovation and decarbonization. In this context, three national schemes have been launched. The first scheme is a call for projects focused on reshoring critical sectors in healthcare, agrifood, electronics, 5G and essential industrial inputs. It has a budget of €850 million. The second is a call for expressions of interest specifically aimed at strengthening the capacity of industries in the healthcare sector to combat the Covid-19 epidemic. It is backed by a budget of €671 million, allocated to around 60 projects, thereby creating just over 3,000 jobs.

The third scheme is an industrial investment acceleration fund for “Territoires d’industrie.” Jointly managed by the French State, which contributes €700 million, and the Regions, which are mobilizing €250 million, it supports industrial projects with a strong social and economic impact. Of the 1,800 winning projects to date, nearly 250 involve industrial reshoring, representing total industrial investment, after leverage, of more than €1 billion. More than 6,800 industrial jobs have thus been created and nearly 40,000 safeguarded. Overall, the State has therefore supported nearly 800 reshoring projects through these various schemes, which have created and safeguarded around 100,000 jobs.

Geoffroy Cailloux : Of the approximately 500 winners of the scheme dedicated to reshoring critical sectors, two-thirds are SMEs. Among the 72 latest winners announced on February 17, one project will lead to the creation of two innovative food production plants in Hauts-de-France, using plant and insect flours for human and animal consumption. Led by Rohart Investment & Trading, it will help reduce France’s dependence on imports of plant proteins. Another example in the rare-earth segment, the “Reealloying Magnet” project will make it possible to produce new high-performance magnets for European manufacturers by recycling rare-earth magnets. This innovation is led by the very small business “MagREEsource,” a spin-off from the French National Center for Scientific Research (CNRS) in Grenoble. 

Geoffroy Cailloux : During the health crisis, logistics proved to be a major driver of resilience for the economy. Today, it is a crucial non-price driver of competitiveness for our industry. If we had the best factories in the world but ineffective logistics, it would amount to having deficient factories in the eyes of the end customer. Logistics competitiveness is therefore an extension of industrial competitiveness. Aware of this challenge, the State has been supporting the development of French logistics for two years, in terms of flows, sites and land, through the Interministerial Logistics Committees (CILOG), with the support of France Logistique, chaired by Anne-Marie Idrac, and its members, among which AFILOG is clearly a driving force on logistics real estate issues.

Geoffroy Cailloux : This support has taken several forms in recent months. In 2021, parliamentary debates during the review of the Climate and Resilience Act made it possible to revisit issues surrounding logistics land and challenge certain preconceived notions. The legislation published on August 22 therefore strengthens consideration of logistics in local planning documents, such as the Regional Plan for Spatial Planning, Sustainable Development and Territorial Equality (SRADDET) and the Territorial Coherence Plan (SCOT). It is important to understand overall flows at the macro level and then guide the application of that understanding locally in order to optimize the network.

In addition, the charter of mutual commitments between the State and industry professionals for the environmental and economic performance of logistics real estate was signed in late July 2021. It complements the Climate and Resilience Act through different means. In particular, this document reflects the public authorities’ commitment to greater transparency and guidance on the law applicable to project development. The Ministry for Ecological Transition and the Ministry of the Economy will remain attentive to feedback from industry professionals.
Lastly, prefects have been instructed to launch regional logistics conferences to match logistics land needs with available supply. This pooling of thinking will make it easier to identify locations suited to optimizing logistics flows from an environmental perspective and will equip local authorities to address the issue. The first two conferences, held in Bourgogne-Franche-Comté and Île-de-France, brought together stakeholders who were not necessarily accustomed to working alongside one another. The next ones will take place in the coming weeks. We expect an assessment of these conferences by September. In the longer term, we hope they will help make the logistics landscape of France’s regions clearer for economic stakeholders.

Geoffroy Cailloux : In the broader context of rising prices and pressure on certain real estate markets, we are aware that rents for logistics sites may increase in some areas. The momentum generated by the regional logistics conferences should open up discussion on new, optimized ways of distributing supply across France. This requires forward planning that brings together the State, local authorities and industry professionals. The synergies sought with the “Territoires d’industrie” initiative are a good example : local authorities that offer turnkey sites to host factories must also be able to promote logistics supply while ensuring flows are optimized. Put simply, having a single central 100,000 m2 site is better than building ten dispersed 10,000 m2 sites, both from an economic and environmental performance standpoint.

Geoffroy Cailloux : Reindustrialization is a government priority. Bruno Le Maire, Minister of the Economy, Finance, Industrial and Digital Sovereignty, wants us to move faster and more decisively. Building on the momentum of recent years, we will therefore support this trend and even aim to accelerate it. Current events show that we truly need to secure our sovereignty over key industrial supply chains. And such an approach also has positive benefits for jobs and our country’s economy.