Economic impact of local textile production – Strong Economic Impact of Local Textile Production Shows How French Manufacturing Can Outperform Imports and Strengthen Jobs, Industry Growth, and Regional Competitiveness 19-11-2025
Economic impact of local textile production
A new study commissioned by the Union des Industries Textiles (UIT) and the Union des Industries Textiles & Habillement Nord (UITH) highlights the powerful economic impact of local textile production in France. Conducted by KPMG, the analysis shows that French-made textiles generate 2.4 times more economic value than imported products. For an industry operating in a competitive global environment, these findings demonstrate the strategic importance of local manufacturing for national growth, employment, and long-term economic resilience.
Local Manufacturing Generates Stronger Economic Returns
According to the study, a textile company producing in France generates economic returns equivalent to 84% of its turnover. These returns come from a combination of direct and indirect economic activity. Direct benefits represent 62% of turnover and include wages, subcontracting, purchases related to facilities, and investments in local operations. An additional 15% comes from taxes and social contributions that directly support public services. Another 7% is generated through indirect consumption, which remains taxable under VAT. Economic impact of local textile production
This means the majority of the value created by a French textile company stays within the national economy. The study clearly shows that the more production remains localized, the greater the overall financial and societal return.
Massive Gap Between French-Made Products and Imports
When comparing these figures with companies that rely heavily on imports, the contrast is striking. The economic impact of local textile production is far higher than the 35% return generated by import-driven business models. In cases where companies mix imports with some local production, the return reaches around 65%, illustrating how even partial relocation can significantly boost national economic value.
For suppliers that operate entirely outside of France, the study estimates that economic return approaches zero. This confirms that imported textile products, while sometimes lower in headline price, contribute minimally to employment, tax revenue, or national industrial development. Economic impact of local textile production
Price Reductions Proportional to Economic Value Creation
The study also explores theoretical price adjustments based on the value that each production model generates for the French economy. The findings show that if product prices matched their economic return, French-made textiles would benefit from a proportional reduction of 46%. Mixed-production models would see a 39% reduction, and import-based products would show only a 26% decrease.
These modeled reductions illustrate the underlying value gap between local and imported textiles. Stronger support for local national production could therefore help rebalance market conditions and highlight the true economic efficiency of French-made goods. Economic impact of local textile production
A Strategic Case for Supporting Local Manufacturers
UIT and UITH argue that these insights reinforce the urgent need to improve access to public procurement for French textile producers. They emphasize simplifying tender procedures, revising restrictive thresholds, and recognizing social return on investment within procurement frameworks. Such measures would help public buyers better account for the economic impact of local textile production, rather than focusing solely on immediate purchase price.
The federations also highlight ongoing challenges for the sector. Energy price fluctuations, rising import costs for raw materials, and underutilized French production facilities continue to slow growth. Strengthening local production networks—including workshop clusters, social-integration companies, and regional subcontracting—would help build long-term industrial resilience and prevent further economic leakage.
A Sector with Strong Industrial and Export Potential
The French textile industry represents a significant economic force with around 2,400 companies and more than 58,000 jobs nationwide. In the previous year, the sector generated €16.3 billion in turnover, including €13.3 billion in exports. These numbers highlight France’s continued relevance as a global player, particularly in high-quality and technical textile segments.
As part of efforts to protect industry competitiveness, the UIT recently joined 21 other European textile and apparel organizations in calling for action against ultra-low-cost retail giants operating from China. Companies such as Shein and Temu have reshaped pricing expectations within the European market, often leveraging aggressive cost structures that are difficult for local manufacturers to match. The federations urge the European Commission to address these market imbalances and support fairer conditions for domestic production.
A Clear Path Toward Industrial Renewal
The study commissioned by UIT and UITH reinforces a powerful message: prioritizing French-made textiles delivers stronger economic, social, and industrial benefits. By recognizing the full economic impact of local textile production, policymakers, businesses, and buyers can help strengthen national competitiveness and build a more sustainable textile ecosystem for the future.
More…
