According to GIFAS (the Group of French Aerospace and Defence Industries), 2015 was an extraordinary year for the sector. Surpassing the 2014 record year –with €50.8 billion turnover and €73.1 billion in orders (for the next 5 years)-, the French Defence Industry registered a record of €58.3 billion turnover and €78.3 billion in orders – increased by 8.5%- and a total export value of €39.4 billion, in 2015. In the same year, there was a trade surplus of €22.2 billion, with the French supply chain companies participating in this growth, recording an estimated turnover of €20.3 billion.
In December of 2015, 185,000 people were employed in the defence industry in France, with 11,000 of them being recruited in that year alone. Having realised the significance of the Aerospace and Defence Industry for the French Economy and employment, the Aerospace Valley cluster was created in 2005, in the Southwest of France.
Source: http://www.aerospace-valley.com
Maintaining its presence in the power, public transport, and defence industries, the government has partially or fully privatized many large companies -including Air France, France Telecom, Renault and Thales- increasing the country’s competitiveness worldwide. Most notably, France was ranked as the 4th largest Arms exporter worldwide, in 2013. In that year, the exported defence items reached the amount of €9.8 billion.
According to the SIPRI database (2014), among the top 100 arms-producing and military services companies, seven French companies are included: Thales (US $8.6 billion for arms sales alone), Safran (US $5.1 billion), DCNS (US $3.9 billion), CEA (US $2.3 billion), Dassault Aviation Group and Nexter (US $1.3 billion for both) (See following table). Also, Thales was ranked among the 10 largest in terms of revenues Aerospace & Defence companies worldwide, for 2014. Finally, another distinguished French A&D company, is Renault Trucks Defence (US $418 million), operating exclusively in the military domain.
In the following table, the most prominent French Aerospace & Defence companies are listed, along with some key associated figures and information:
|
Prominent French A&D companies |
Arms sales, 2014 (in US $ Bn.) |
Total sales, 2014 (in US $ Bn.) |
Arms sales %, 2014 |
Total Employment, 2014 |
Activities |
|
AIRBUS GROUP |
14.5 |
80.5 |
18 |
138,620 |
Civil & Military Aviation, Helicopters, Drones, Electronics, Cyber security |
|
THALES |
8.6 |
17.2 |
50 |
61,710 |
Aeronautics Systems & Appliances, Sensors, Communication systems, Weaponry systems and Ammunition, Training and Simulation, Space |
|
SAFRAN |
5.1 |
20.3 |
25 |
68,950 |
Engines, OEM, Aeronautics Propulsion, Space and Missile systems, Optronics, Avionics, Navigation, electronics and critical software systems, Drones |
|
DCNS |
3.9 |
4.0 |
96 |
13,130 |
Ships, Submarines, Underwater weapons, Combat systems, Control systems, Integration, naval drones, Naval bases, Marine energy & nuclear power, services related to the above. |
|
CEA |
2.3 |
5.8 |
40 |
15,770 |
Provides conventional Defence management assistance services, CBT verification methods, NRBC-E program, Design & Manufacture of nuclear steam supply systems and associated logistics, Test reactors, Simulation facilities. |
|
Nexter |
1.3 |
1.4 |
95 |
3,320 |
Armoured systems and weaponry systems, Munitions and warheads, Mechanical/ hydraulic/electronic equipment, Robotics, Optics, CBRN protection (NBC-Sys). |
|
Dassault Aviation Group |
1.3 |
4.9 |
27 |
11,750 |
Business Aviation, UAVs, Patrol aircraft and maritime surveillance, Pyrotechnics, Space activities |
|
Renault Trucks Defence |
0.4 (Total turnover Note: in 2014 average EU/US =0.75). |
0.4 |
100 |
1200 |
Armoured wheeled vehicles, Tactical vehicles and logistics, Propulsion armour chain, Weaponry systems (remotely operated turrets), MCO modernisation. |
Source: http://books.sipri.org/
Note: As of Jan. 2014, the company previously known as EADS started operating as Airbus Group. Airbus Group’s main production facilities are based in France and Germany.
As illustrated in the chart below, France has managed to increase its military exports from €3.1 billion in 2005, to €4.8 billion in 2014, which can be considered a notable change considering the recent economic crisis. In the same period, imports also increased, but not so significantly.
In 2015, military/arms orders from abroad, increased by 106%, recording a historic record, while the deliveries to foreign countries accounted for a value of €7.4 Billion. The main destinations of French Military exports in 2015, were Asia, Europe and Africa (See chart below).
In March 2016, France and Qatar completed a deal worth €6.7 billion (US $5.7 billion), for the acquisition of 24 Dassault Rafale fighter jets, MBDA missiles, as well as pilots and engineers training.
Also, France signed (in April 2016) a package deal of €2 billion ($2.26 billion) with Egypt for the development of a military telecommunications satellite, to be built by Airbus Space Systems and Thales Alenia Space. This built on top of the France-Egypt collaboration as of 2015, when the provision of cutting-edge multi-mission frigates -able to respond to air, marine, submarine and land threats, a deal of € 950 million- and the purchase of 24 Rafale fighters (€5.2 billion deal), had been agreed.
Finally, the greatest success in terms of French defence sales in 2016, was the $50 billion submarine contract signed with Australia, to build 12 diesel-powered submarines for the Royal Australian Navy, destined to replace their outdated ones.