Bourgogne Franche-Comté. The Franche Comté wood industry in Burgundy is audited by the Banque de France

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With a regional forest area of ​​35.9{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118}, it represents 7{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of the French timber industry. Bourgogne Franche-Comté has 9,681 companies, of which 38.2{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} are active in the construction sector and 34.3{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} in forestry and forestry, which is twice as many as at national level. Industry weighs 17.3{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} and commerce 10.2{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118}.

The Banque de France examined the economic health of this sector, the rate of renewal of which has declined slightly, despite less defaults than nationally. First note: the age of the captain raises questions as 16.7{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of the 3,498 business leaders in this sector are over 60, or 583 of whom 178 are over 70.

From an economic point of view, the Banque de France based its study on 698 companies with a turnover of 750,000 euros and 16,550 employees. That means industry with 285 companies and 10,332 employees and 62.9{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of value added, construction with 214 companies and 3,200 employees and finally trade with 199 companies and 2,968 employees. Almost half of the companies in the industry are OPES.

Significant delay since 2018

The first observation made in the study is that the timber sector of the Burgundy Franche-Comté has seen a very significant sales slowdown since 2018, while the national sector is more or less stable. This is especially true in woodworking (- 4.1{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118}), the paper and cardboard industry (- 2.8{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118}) and furniture production (- 2.7{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118}). A period in which the workforce was particularly “sensitive” as it has declined by 3.7{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} since 2018, with the exception of the construction and commercial sectors where they were stabilized. 'In connection with the resumption of activity, the return per employee is 12{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} below the national average in the Bourgogne Franche-Comté,' notes the Banque de France, which estimates the annual economic profit per employee at € 25,400 work wood, 21,600 € 1,400 in the cardboard industry, € 1,400 in furniture manufacturing, where gross margins are most impacted, € 12,400 in construction and € 17,900 in retail.

Lack of effort in innovation

However, the Banque de France points to a lack of innovation effort, as 'a proportion of sales for R&D programs and patents is twice the national average', contrary to the efforts of Investment. The deterioration in cash is also an issue in the industry suffering from the weight of stocks. “The working capital requirement has increased by 30{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} while sales have increased by 5{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118}. 'This does not prevent companies from having low overall debt and losing weight.' 'Only 46 companies for 9.4{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of the workforce in this sector are classified in the high fragility zone, estimates the Bank of France.