It seems yet to have the wind in its sails

Return produce "in the country"... The idea surprises in these difficult times. It seems yet to have the wind in its sails. After to be venture Ukraine and Romania, the Risc Group it services company is returned to Orléans. In the arts of the table, Geneviève Lethu now produces less than 10 of its production outside of Europe. Its knives are made in Thiers, in the Puy-de Dôme and its table linen in the Vosges, in place of the India. Two examples among many others. Like them, dozens of companies are in fact tempted to resume the path of the hexagon. Weigh the pros and cons. Taken last year by German Simba, Smoby Toys toy manufacturer is of them. "On some lines, China is more competitive as before, says its Director General, Thomas Le Paul." For bulky products or metal base, Europe is again interesting. "These productions there, relocated five or six years ago, even repatriate", observes, without so far having taken its decision.

A few years ago, these same industrial trumpeted yet the benefits to develop production sites in countries with low cost of labour or taxation more attractive than the French territory. On paper, the solution was appealing. In reality, it was often much less. Samas France office furniture specialist made bitter experience. In 2000, in full crisis in the market of furniture, the company decided to relocate its production in China. The expected gains are attractive: the Chinese subcontractor provides a finished product at a lower price by 20 to the cost of production of its plant in Noyon, in the Oise département. The calculation is quickly... But poorly done. Upon arrival in France, the real gain is only 10 because half of the actual savings is absorbed by the cost of transport. The profits of the relocation did not avoid society judicial relief in December 2004.

Wage costs on the rise

Samas is an isolated case. With a step back, other groups acknowledge seeing a little too green grass from their land and, since then, returned to the fold. "The relocation are a reality." "They take the form of the return of parts companies a time abroad or a more comprehensive reorganization which led to move production sites", notes Michel Ghetti, Chairman of the cabinet of Council businesses France industrialization and employment. Of course, for the time being, it is difficult to speak of a real background trend. With 50 cases per year, it is still a drop in the ocean of the 2 million hexagonal companies. But the cases in the past twelve months are anecdotal. More and more often, they are indeed signs known. Especially, the phenomenon is beyond French borders.

To the extent that the McKinsey firm comes to question: "Is this the time to rethink offshoring", ask three of its consultants. In a study published last September, Ajay Goel, Nazgol Moussavi and Vats n. Srivatsan advanced three arguments for relocation: the outbreak of the price of oil, a weak dollar and wages rising in countries deemed to be low-cost. It was before the economic and financial storm. But the figures are eloquent: in 2000, when the price of a barrel of crude oil was around $ 20, the cost of transport could be equated with a 3 tax on imports. The release of this study, the puncture was closer to 11, as a result of the tripling of the price of a standard container. And remains still important despite the fall of the prices of black gold. As labour costs, they too are in strong growth. Shenzhen, which is used as often, the minimum wage and increased in a few years of 28 euros to almost 100 euros per month. And in the region of Shanghai, the executives are now paid between 40,000 and 80,000 euros per year. An increase in salary costs which generalises, as evidenced by the movement of three-week strike that affected Renault Dacia, in Romania, in the spring of 2008.

Industrial espionage

But the rise of direct costs is not the only reason for the relocation. "Delivery times, the difficulties to coordinate the activities of one country to another, the problems associated with industrial espionage or simply more to technology transfer and copy are all reasons that promote and will encourage the return of some industries in France," predicted Michel Ghetti.

In fact, a growing number of companies Bolivia noting the poor quality of the services or offshore products. Thus, it is in large part because nearly 23 of clients were dissatisfied when they online its call centres based in Romania, Ukraine and the Morocco that Risc Group has decided to repatriate to Orléans. An argument strong enough in his eyes that he agreed to support an increase of 35 of its costs. "In the computer world, the practice of relocation is common, but we took the opposite party, even if the cost of labour is higher in France", is the leader of the group, Loïc Pequignot.

Same sound of a Bell in Geneviève Lethu. Its CEO, Edmond Kassapian, admitted that foreign company met "of quality, price and reliability problems" and that, in General, it was "very difficult to have a follow-up on this plan with the Chinese". At the optician Atol, even if it explains the return to Jura by a concern for economic patriotism, it admits also faced problems of compliance with the commands. "We do not receive what we commandions: Chinese color references are different", reflects Philippe Peyrard, the Director General of the company.

Difficulties are not the exclusive preserve of China. In mechanical industry group Ingersoll, specialist piston compressors, retained only a Czech Republic Foundry factory. And returnee in March last to Wasquehal, in the North, the site he had relocated to that country in 2002. "Production is lacking quality and responsiveness." "Thanks to the automation of the Assembly and the removal of the needs of recovery of machining parts, we have managed to reduce by more than 60 the time of editing", now says the company.

This difficulty to control the quality of the products is one of the disadvantages of remoteness. But he has other effects. It requires also to take account of the most important transport time. What is sometimes a handicap when the company wants to retain its reactivity.

Shorten the time limits

It is one of the reasons that led Samas back in France in 2006. "Our clients want products customized under two periods of 15 days to three weeks, says its CEO, Vincent groats. It was untenable with a subcontractor at the other end of the world which proposed that two colours: dark grey or light grey. "Reinstalling in France, the furniture manufacturer provides today have reduced"from nine to four weeks' time of delivery. Similar problems have convinced Sullair Europe to repatriate its production of air compressors for construction at Montbrison (Loire). Made in China, they were often delivered five months after the command. "Despite the attractive cost of Chinese labour, we could not afford delays in delivery greater than five weeks", recognizes Bertrand de Taisne, the Director General of the society.

This add copy and transfer of technology desired or not problems who quickly transform the partner or the local subcontractor in direct competitor. "When you have an original model, it is immediately copied." There is only the color that changes! For us who are creating all products 1,500 six months, unable to fight! "So there is little recourse", has strangled Genevieve Lethu pattern. Even less bearable unfair competition in times of crisis.