Economic Report of the Shopfitting Industry in France

ISO Congress 28.04.07:

 

In 2006:

-         General Income rate was 2.1 % in France

-         Unemployment rate had been decreasing during all the year, and finish with 8,6 % in the end of 2006. It is 8.4 % at end of February 2007

-         Inflation rate was 1.5 %

-         Balance of exchange was very bad with a deficit of  27 billions Euros

-         Interest rate is low but increasing  : 4.5 % for short and long terms 

 

We expect for 2007:

-         General Income rate of 2.1 %

-         Unemployment in decrease

-         Inflation rate at around 2 %

-         Still a deficit for commercial exchanges

 

BUILDING ACTIVITY

2006 was an excellent year for building activity with an increase of 4.9 %

We observed an increase in all sector with a rate of:

+ 9.7 % for house buildings

            + 13.5 % for offices

            + 6.4 %, for industrial and commercial buildings

This sector of activity had increase the number of employees by 35 000 people although it is very difficult to find qualify manual workers

In 2007 we expect a good year again with a rate of increase slowing down.

 

SHOPFITTING

Good year for this sector in 2006 and very good perspectives in 2007, although increase rate for new undertake in commercial building was expected slowly decreasing

 

But renewing of shops is very important due to the necessity to change the Concept of shop more often (Every 4 or 6 years), which means a very good activity for shopfitters. Unfortunately the level of sale price does not increase because the competition is hard with entrance of foreigner companies to manufacture of shopfitting.

 

At opposite, purchase prices are increasing (Particularly for glass, metal work, and also wood) due to the good conjuncture. But the French companies are using more and more outsourcing, more particularly in Europe, in a first time.

 

Concluding comment by Francois Mathéron

president CFA, vice president of ISO:

 

Concept changes of chain stores are more and more frequent, which is good for the shopfitting industry. Every 4 years is becoming common.

 

Questions answered: The export figures are not available but small. The total market of our business is estimated at 5 bio Euro per year

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