AMCHAM-BAIN BAROMETER - SATISFACTION OF AMERICAN INVESTORS IN FRANCE 21ST EDITION
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21st edition AmCham-Bain Barometer Satisfaction of American investors in France
Table of contents
I Foreword 4
2
21 years of France’s attractiveness for American
6
investors in France
3 Barometer 2021 on the satisfaction of American
investors in France
8
6 figures to remember 8
Projection: U.S. investors’ outlook in France 10
| Medium-term outlook 11
| Job creation perspectives 11
| France in Europe 12
Perception : France and its regions as seen by American investors 13
| France’s NPS® 14
| Assets and priorities to attract investment in France 15
| Innovation and CSR ecosystems 15
| Events (excluding Covid) that made 2020 17
| Regions’ attractiveness 18
Focus: Impact of the Covid-19 20
4 AmCham’s recommendations to strengthen France’s
attractiveness
23
5 Methodology and profile of US investors interviewed 26
6 About AmCham and Bain & Company 27
Foreword
Last year we published the 20th edition of 2008-2009 crisis, we must remember that the The country seems adequately positioned to Finally, in these uncertain times, the fear of the
our Barometer on France’s attractiveness for NPS had fallen to an historically low level of perform well in Europe. This year, American “French paradox” is making a come back: a
American investors, which showed record -74%, losing 46 points in three years. investors praise government’s support country that absorbs shocks better than others,
results and high satisfaction despite some level measures and recovery plan. They are 96% to but that might be slower to bounce-back when
This global crisis also has the effect of an
of uncertainties regarding the social climate. believe that support measures for businesses the whole world will be starting up again.
increasingly sizeable polarization of opinions.
At that time, nothing could predict that we in France were as competitive as in other
While about 40% of American investors In the light of the global crisis, which is laying
would experience such an extraordinary year. European countries, with 54% even believing
anticipate a positive evolution of the economic out the foundations for the world of tomorrow,
that they have been more competitive than
The 2021 Barometer primarily reflects investors’ context in France in the next 2-3 years, only American investors seem to be holding their
elsewhere in Europe.
uncertainty in a bewildering global context, 2 points less than last year, 23% of them, 12 breath when looking at this unpredictable
more than a lack of attractiveness for France. points more than in 2019, anticipate a negative In this context, they anticipate a relatively quick French trajectory. They seem torn between the
However, these uncertainties exacerbate the evolution. return to normal as 77% of them think their fear of seeing the crisis push France back into
country’s shortcomings. company will take 2 years or less to recover its “old demons” and the wave of hope created
Beyond the economic situation, which is
and reach an economic activity equivalent to by the new innovation-driven and forward
Unsurprisingly, this “black swan” event inevitably complicated, it is above all France’s
the pre- Covid crisis level. looking spirits of the country -
destabilizes the immutable equilibrium and historical and structural obstacles or weakness
encourages a slightly more cautious outlook that American investors are pointing out to Another reason for hope: France is still This AmCham Bain 2021 Barometer should
among the community of American investors explain their decline in optimism. One of perceived as an attractive country for undoubtedly lead France to seize this crisis
surveyed. In particular regarding employment, the weak signals we had identified in our innovation, with 86% of the American investors as an opportunity to correct its historical
this year’s results shows the repercussions of barometer over the past few years is now at the surveyed perceiving its innovation ecosystem weaknesses , and to seize the positive
the global crisis: 28% of American investors forefront of this years’ results: ranked as the 5th positively or very positively, praising the prospects offered by this “black swan event”
believe that their workforce will decrease in decisive criterion for investment decisions by workforce qualification, government support for the country’s future. France has all the levers
the next 2-3 years, 21 points more than last American companies in 2019, the social climate for the new economy and IT infrastructures. in hand to make it happen and AmCham will
year, for only 27% who think they will increase -unanimously- becomes the first criterion in support France in its efforts to become more
It will be interesting to closely monitor
(51% last year). 2020. 54% even consider it as an obstacle to attractive to transatlantic investment.
changes in opinion in the coming months,
their investments in France, in comparison
This caution materializes in a slight erosion and to maintain a high level of attention. The
with other European countries. Also, the
of the attractiveness of France for their multiplicity of Covid variants, the prospects
legal framework surrounding redundancies
investment decisions. However, the underlying of new lockdowns in the long term, the
and their complexity are still perceived as a
global uncertainties should bring us to mitigate uncertainties related to a lasting drop in Covid Bijan Eghbal
weakness despite the reforms undertaken
this erosion. cases, force companies to be in permanent Partner at DLA Piper
by the government at the beginning of the
crisis management mode and reduce President of AmCham France
France’s NPS as a location for business mandate; more and more people are criticizing
prospects in the short and medium term. The
investments slightly fells to -20% in 2020, the complexity of procedures (73%) and their
sustainability of the “whatever it costs” strategy Marc-André Kamel
8 points lower than in 2019. This figure costs (80%).
defended by President Macron to support the Partner and Director at Bain & Company
can easily be explained by the economic Vice-President of AmCham France
Despite these points of attention, the pandemic economy is questioned: 70% of investors say
downturn following the Covid-19 crisis. But
has only slightly tempered the optimism of they are worried, or very worried about the
the unprecedented scale of the shock caused
American investors regarding the attractiveness level of public debt, and its impact on taxation
by the global pandemic seems relatively well
of France. in the years to come.
absorbed in the light of past crises: for example,
between 2011 and 2014, or following the
4 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 5
21 years of France’s attractiveness
for American investors
First annual 45% of companies did France faces an Leaders of French 83% of investors consider Following 2 years of global Strong decrease of the satisfaction of US
barometer on France's not create jobs after increasingly global subsidiaries of US that the election of financial crisis, investors are investors in France following François
attractiveness for the enactment of the competition, companies fear the President Sarkozy will more optimistic regarding Hollande’s election and term
US investors bill setting working especially from negative impact from have a positive impact the economic situation
time at 35 hours/week Eastern Europe the deterioration of on foreign investment In 2012, ~85% of the In 2015, France remains not so Emmanuel Macron’s election
1,250 US companies and Asia Franco-American in France However, France's surveyed executives attractive compared to UK, as President of France drives
are established in American companies relations attractiveness is down think that the Germany and the Netherlands. US investors’ optimism up
France, providing perceive the French France historical with only 46% (2010) and taxation and The economic and social
458,000 direct and ecosystem as drawbacks remain Only 30% of US Collapse of the satisfaction 56% (2011) of investors regulation measures situation, labor qualification
1,650,000 indirect favorable to new the same: a rigid investors predict an of US investors regarding considering it a ‘good’ announced will and cost, as well as taxation, A troubled social and economic
jobs technologies organization of labor improvement of the the evolution of the or ‘excellent’ destination. penalize France’s remain the most important climate at the global, European
and an unfavorable economic context economic context They were up to 66% attractiveness criteria for investment and French scales slows down
fiscal policy in 2009 decisions investors’ optimism
SATISFACTION OF AMERICAN
INVESTORS IN FRANCE *
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The “Aubry” law Inauguration Jacques Chirac The reform of Closure of the Rejection of Demonstration Nicolas Death of the France joins Strikes against a France takes Election of Demonstrations Increase of the Terror attacks Nice terror Election of The “Gilets Death of The government
sets the legal of the wins the civil servant's last French the European against the CPE Sarkozy’s last WWI "Poilu" NATO integrated pension system on the role of François in favor and VAT in France in France attacks on Emmanuel Jaunes” Jacques Chirac announces a
working time at employment second round pension system coal mine in Constitution by election fighter command reform between G8 rotating Hollande as against same-sex (from 19.6% to Bastille Day Macron movement series of
35 hours a week bonus (ended of Presidential trigers heavy Moselle referendum in September and Presidency President marriage bill 20% and from Creation of the poisons the Notre-Dame measures to fight
in 2015) elections strikes. France France accounts October 2010 7% to 10%) CICE and removal ~50 taxes social climate de Paris in the pandemic at
against extreme Contribution for more than 32 Dominique “My enemy is Entrepreneurs of the “tax on the created since for long flames "whatever cost".
End of right candidate period is Begining of Smoking ban million web users Strauss-Kahn is finance” protest and high-income 2010 for 9 The country
military service extended to riots in the in public places arrested in NYC Increase of constitute the workers” removed adapts to
40 years, up French suburbs Unemployment bank charges “pigeons quarantine and
Crash of the from 37,5 years at Clichy- reaches 9.6% movement” Images of Air curfew
Concorde, that sous-Bois of the working France HR
Explosion of the Social conflict
connected population, a Director assaulted
AZF plant in in France over
Paris and record since 2001 by company
Toulouse resulting pension reform
New York in workers make the
in 2,500 injured
3hrs 30 min news worldwide
and 30 dead
Geroge W. 9/11 France Beginning George US trade Saddam Beginning of Barack Obama’s General Motors Barack Obama End of the Re-election of Boston End of the Severe tensions Election Withdrawal of Withdrawal of Rising pressures Explosion of the
Bush elected attacks opposes of the war W. Bush is deficit reaches Hussein is the subprime is elected goes bankrupt announces he war in Iraq Barack Obama marathon war in following the of Donald the US from the the US from between Covid cases in the
President the US on war in Iraq reelected unprecendente sentenced to crisis President wants to reform attacks Afghanistan deaths of two Trump Paris the nuclear Washington US, with over
in Iraq President d levels and death and the financial Oussama Ben Afro-American agreement on agreement and Teheran 340,000 deaths
household executed in The real system following Laden is killed in citizens killed by climate with Iran
George debt reaches Iraq estate market the crisis Pakistan the police Donald Trump Joe Biden is elected
W. Bush signs 139% of collapses Bankruptcy Bernard Madoff Tensions increasingly as 46th President of
the Patriot Act income level of Lehman is sentenced to The US are leading to withdraws from the US
Brothers marks 150 years in deprived from several international
the beginning prison their “AAA” rating shutdowns scene First Covid case in
of the global for the first time in the China, in Wuhan
Beginning of financial crisis by S&P administration G7 agreement
the war in on GAFA
Afghanistan taxation
France takes The Nice treaty Euro Signature of a Enlargement The EU starts The domain Romania and The crisis hits Angela Merkel Europe In Brussels, EU receives Croatia Russia Paris agreement The “Leave” 60th anniversary Implementation Brexit saga The UK
Presidency signed in issuance Security Pact of the EU to 10 accession name “.eu” Bulgaria join Ireland, Spain, is reelected as (especially the 17 Euro the Nobel joins the EU invades on climate wins in the of the signature of GDPR between the leaves the EU
of the EU February brings between the new member negotiations provides a new the EU Iceland and the German France) is hit zone member Peace Prize Crimea, referendum of the Rome UK and in January
Council changes to EU and NATO states with Turkey space while UK as soon as Chancellor by Cyclone states agree on Beginning of the triggering European on Brexit treaty Europe
the European promoting The ECB, the 2008 Xinthia the reinforcement implementation strong refugee crisis
institutions Angela Merkel European Fed and the Greek sovereign of the European Fund for of Bale III geopolitical due to the war The European
is elected identity on the Central Bank of debt crisis financial stability, on the tensions in Syria Parliament
German Internet Japan decide to recapitalization of banks, approves the
Denmark Chancellor inject $330B and on the wipe out of comprehensive
Greece joins Europe accounts
organizes a in the world 50% of the Greek debt economic and
the Euro zone for more than
referendum on monetary owned by banks. trade agreement
system (CETA) between 30 million
joining the single Covid-19 cases
curency. Electors Anti-austerity movement EU and Canada
vote "no" (15-M) in Europe and
around the world
* Answer to the question "In your opinion, how will the economic outlook evolve for your industry in France over the next 2-3 years" (Positive, Neutral, Negative)
Sources : Le Monde, Les Echos, Paris Match, La Croix, France 24, europa.eu
6 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 7
2021 barometer on American
investors satisfaction in France
6 figures to remember:
-8 points 96%
France’s NPS® as a country in which to set up a business in 2020 slightly 96% of investors praise the measures to support businesses
in France and the recovery plan. They consider them to be as
fell to -20%, 8 points lower than in 2019.
competitive as those in other European countries or even more
It loses 12 points to -24% when it comes to the NPS of a company already competitive (54% for the business support measures and 39%
established in France that is looking to expand its activities.
for the recovery plan).
This figure can certainly be explained by an unprecedented economic downturn
linked to the Covid-19 crisis, but it should not lead us to lose sight of the historical
and structural obstacles or weaknesses in France that show more polarized
perceptions: social climate, taxation, work flexibility, etc...
~40% 2 years
About 40% of American investors anticipate a positive evolution of the More than ¾ of investors think that it will only take their company
economic context in France in the next 2-3 years 2 years or less to reach an economic activity equivalent to the
pre-Covid-19 crisis
This is only 2 pts less than last year.
For ~60% of respondents, the crisis will have a neutral impact on their investments
On the other hand, 23% anticipate a negative trend, compared to 11% last year.
in France. ~10% believe that it will have a positive impact, against ~25% who
anticipate a negative impact, the others preferring not to express an opinion.
54% >85%
54% of American investors believe that the social climate is a More than 85% of investors have a positive or very positive
weakness compared to other European countries, and that it hinders perception of the innovation ecosystem in France.
their investments.
In particular, workforce qualification, government support for the new economy
The social climate is becoming the most important investment factor in France, and IT infrastructure are seen as France’s strengths in the quest for innovation.
with 100% of investors considering it is an important factor, or even a very
important one for 80% of them.
8 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 9A moderate decline in optimism A halt to job creation perspectives
Unsurprisingly, the results of our 2021 After years marked by optimism for job
barometer reflects what happened during creation, American companies, France’s
the past year. The satisfaction of American largest foreign employers, expect to pay
investors regarding the economic outlook in the price for the Covid crisis. Last year, 51%
France is only going down slightly this year, of them thought that the number of their
despite the current Covid crisis. Above all, employees would increase. This year, they
the polarization of perceptions is remarkable are only 27%. It is even the first time since
this year, with 39% of investors anticipating a 2016 that they are more to think that the
positive evolution of the economic context, number of their employees will decrease
but an increase in those predicting a negative (28% of investors). Many expect to have to
outlook from 11% to 23%, reflecting the make adjustments in the next few years to
uncertainties of our times. It is also worth compensate for the revenue declines of 2020.
mentioning that the outlook is comparable to
that of 2018. This apparent positive sign should
not hide the fact that many investors simply
anticipate a catch-up after the economic
downturn in 2020.
Projection How will the economic outlook evolve for
your industry in France over the next 2-3
Over the next 2-3 years, how will the number
of employees evolve in your company
years? in France?
American investors outlook on France
5% 7%
9% 11%
15% 13% 17%
20%
24%
28%
23% 33% 33%
19%
35% 42%
36% 48%
41%
50% 33%
49% 31%
45%
72% 46%
49% 52%
51%
41% 42%
39%
36%
27% 30%
27%
21%
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Positive Stable Negative Don’t know Increase Stable Decrease
10 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 11France’s image: weakened but still attractive
Even if 48% of investors believe their Choose France
headquarters have a good or excellent image
of France, this figure is down for the first time
since 2015, and at its lowest level since 2017. Pro-business reforms
Last year, nearly 65% of investors had a good promised by President
image of France. The economic situation alone
is not enough to explain this decline: it is the
Macron
historical weaknesses and France’s persistent
“old demons” that investors are pointing at:
a difficult labor climate, excessive costs and
The CChoose France summit has
administrative redtape.
been postponed to a later date
this year before the summer. But
Emmanuel Macron still spoke
In your opinion, how do your headquarters
with about a hundred foreign
view France in comparison to other executives at the end of January.
destinations in terms of investment?
25%
Perception
9% 6%
13% 15%
27% President Macron has promised
33%
to continue the reduction of
30%
36% corporate tax, which will be
37% reduced to 25% next year. France and its regions as seen by American investors
39%
43%
49%
100 billion euros
It is the amount of the recovery
55%
50% plan detailed by the President,
promising companies to “prepare
42% 44% France for the next decade”.
25%
16%
6% 6% 9% 4%
2% 5%
2015 2016 2017 2018 2019 2020
Positive
perception 18% 30% 48% 55% 64% 48%
Excellent Good Average Bad
12 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 13France’s NPS as an investment destination France’s strengths and weaknesses as seen by American investors
On a scale from 0 to 10 (10 being the highest
in 2020: a limited decline
rating), would you recommend France to a U.S. France’s strengths and weaknesses in 2020 are very similar to previous years. The cultural
In 2020, despite the Covid crisis, the company seeking to establish business abroad? environment, quality of life and geographic location are the main strengths; redundancies
number of promoters in France remained (costs and procedures) and labor costs are the main weaknesses. These weaknesses, which
relatively stable at 16%. On the other hand, are persistent and particularly troublesome in a context of crisis, are contributing to the decline
the number of detractors increased by in France’s attractiveness this year.
29% 29%
7 points, a polarization that stems from 33% 36%
54%
formerly neutral investors. However, France 65%
Regarding those factors, how does France compare with other European countries?
seems to have absorbed the shock relatively 46% 58% 54% 47%
well, with an 8-point drop in the NPS to
43% STRENGTHS WEAKNESSES
-20%. This NPS remains higher than over the 32%
11% 12%
3% 3% 21% 14% 17% 16% 21% 25% 30% 19% 27%
entire 2009-2016 period, a good score that 36% 40% 44% 46%
2015 2016 2017 2018 2019 2020 49% 50% 54% 57% 58%
can be explained by the reforms undertaken 62% 73% 69%
61% 62% 73% 80%
NPS* -62% -51% -12% -15% -12% -20%
since 2017 and welcomed by more than 70% 78% 73% 69%
67%
71%
of investors. Promoter Neutral Detractor 60% 56% 54%
46% 44%
39% 41% 52%
39% 25% 30%
33% 28% 26% 24%
14% 18%
(*) Net Promoter Score (NPS) = % promoters (grade of 9 to 10) - % detractors 7%
(grade of 0 to 6)
Infrastructure quality
Cultural environment
Quality of life
Quality of public and
private services
Energy supply and cost
Banking sector strength
Legal certainty
Workforce availability
Importance given to CSR
Economic context
Flexibility
of working hours
Relocation costs
Tax system for foreign
Geographic location
Workforce qualification
Opportunities for R&D
companies
Workforce overall costs
and innovation
Social climate and
political stability
Simplicity of admin.
procedures
Redundancy costs
Complexity of
redundancy procedures
Note : in percentage of answers.
What are the main investment criteria for U.S. investors?
Formerly ranked 5th among the decisive criteria in their investment choices, the social climate
becomes in 2020 the first investment factor for American investors, 100% of them considering Strength Equivalent Weakness
it is an important factor. It shows the persistence of an issue that crystallizes expectations but that
reforms have not yet been able to satisfy. As in previous years, the quality and availability of the
workforce, the economic context and legal certainty remain the major criteria for investors.
Priority levers to strengthen France’s attractiveness
In 10 years, France has been able to consolidate or make use of its strengths (workforce quality,
How important are the following factors in your company’s investment decisions?
geographic location, infrastructure, innovation), without however managing to reverse the trend in terms
TOP 5 of its structural weaknesses, which are perceived as obstacles for investment decisions by American
7% 8% 9% 10% 12% 15% 17% 18% 18% 20%
21% 23% 25% companies. Improving the labor climate, adapting the tax system, and decreasing labor costs are still
31% 26% 27% 37% 30% 33% 37%
36% the main ways to improve the country’s attractiveness.
44% 34%
49% 45% 46% 41% 38% 33%
60% 46%
50% 51%
79% 53% 37% France positioning
68% 72% 70% 61% 67%
60%
49% 58%
43% 45% 42% 43% 43% 49% 35% + Cultural
Geographic
1 2 3 4 5 24% 26% 24% 25% environment Quality of life location
14% Workforce Assets to use
qualification Workforce, location,
Economic context
Workforce qualification
Legal certainty
Workforce availability
Workforce overall costs
Tax system for foreign
companies
Flexibility of working hours
Infrastructure quality
Relocation costs
Quality of public and private
services
stability
Simplicity of admin.
procedures
Geographic location
Redundancy costs
Complexity of redundancy
procedures
Opportunities for R&D
and innovation
Importance given to CSR
Quality of life
Banking sector strength
Cultural environment
Energy supply and cost
Social climate and political
Quality of public Infrastructure innovation, legal certainty
and private services R&D quality
Energy supply and cost and infrastructure
Legal
Banking sector Workforce availability certainty
Importance
strength
given to CSR
Economic context
Relocation costs Social climate and political
Flexibility stability Priorities for
of working hours Tax system improvement
Previous for foreign companies
Admin. procedures Costs, labor legislation,
ranking tax regime and adminis-
Complexity of redundancy
procedures trative procedures,
2018 3 1 5 2 8 6 9 4 10 7 12 14 n.a. 11 13 15 16 18 17 19 20 Workforce
Redundancy costs social climate
2019 5 3 1 2 4 6 7 13 12 10 9 14 n.a. 11 8 15 16 18 17 19 20 - overall costs
- Importance of criteria +
Very important Relatively important Not important Criteria position in 2011 Criteria position in 2020
14 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 15An economy focused on the future Excluding Covid, 2020 was also: According to 82% of American investors, the
election of President Biden will have a positive
Once again this year, American investors’ perception of the French innovation ecosystem is positive 2020 showed a pause in the governmental
impact on transatlantic relations. However,
(for 86% of respondents) or very positive. In particular, investors praise the workforce qualification, reforms governments. In this context, investors
they believe that this event will have less
government’s support for the new economy and IT infrastructure, which are respectively cited as fear that the reforms needed to boost France’s
impact on their investments than the Green
France strengths by 81%, 57% and 48%. Concerning access to capital and financing, they frequently attractiveness could be postponed, or even
Deal and than Brexit (especially), which will
mention the relatively easy access to initial financing (Seed and Series A) but the difficulties cancelled. 71% of them still have a positive
have a strong or very strong impact for 35% of
encountered in financing scale-ups, a field in which the United States, on the other hand, excels. perception of these reforms, but it is 15 points
investors against 9% for the election of Biden.
less than in 2019. On France’s competitiveness
and the economic situation, the positive
perception respectively loses 10 and 17 points In your opinion, what impact will the election
What is your general per- In your opinion, when you consider investing, what are France’s of Joe Biden as the 46th President of the
to reach 64% and 61%. These figures, even if
ception on the innovation strengths and weaknesses in terms of innovation & digitalization? United States have on transatlantic relations?
they remain good, should alert the government
ecosystem in France?
on investors’ expectations for the country to
4%
3% 7% 7% continue implementing the reforms.
11%
16% 25% 22% 28% 14%
37%
45%
49% The pause in reforms also marks a slight relief
39% in the social climate in France, but it is still
46%
41% negatively perceived by 57% of investors.
81% 62%
57% 44%
66% 48%
37%
32% What is your assessment of the reforms
31%
Don’t know
7% implemented since President Emmanuel
Macron’s election? Neutral
Workforce IT Access to capital Innovative and
Very negative qualification infrastructures and funding flexible legal Positive
20%
Negative framework
3% 3% 3% 3% Very positive
Neutral State support Entrepreneurial Strong digital 5%
to the new economy spirit penetration within 9% 8% 11% 2020
20% Positive
companies and households 13%
Very positive 24%
2020 22%
Strength Neutral Weakness 26%
46% To what extent each of the following events
42% will impact your investment strategies in
Europe?
Another key topic for In your opinion, does France offer a supportive regulatory 52%
the future, CSR, is at the framework to private companies’ social and environmental
55% 11%
forefront of France’s strategy, commmitment? 50% 13%
28%
since nearly 70% of investors 33%
29%
4%
consider the regulatory 18% 23%
framework to be conducive 24% 19% 11%
9% 11% 5%
to companies’ social and
Foreign France Economic Franco- Social
environmental commitment, investment competi- situation American climate 27%
but still deplores the in France tiveness in France relations in France 34%
in general 40%
lack of predictability of
Positive
environmental legislation. 50% perception 71% 64% 61% 38% 13%
Don’t know 2020 Not at all
Not supportive at all Evolution 34%
Not really
Not supportive vs. 2019 28%
20% Neutral
Neutral Positive
perception 86% 74% 78% 31% 12% Strongly
8%
18% Supportive 2019 7%
7% 7% Very strongly
Very supportive
Very positive Positive Neutral Brexit The Green Joe Biden's
2020
Negative Very negative Don’t know deal election
16 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 17France and its regions For the regions you settled in, what were the main determining factors (maximum 3)
To explain their choice of settling in a particular regions, American investors overwhelmingly favor Grand Est Hauts-de-France
Île de France
geographic location as one of the three most determining factors for >70% of investors. The economic
80% 80%
dynamism of the region, the quality of the infrastructure, and the qualification of the workforce are
cited as the other key criteria for settlement decisions by 30 to 40% of investors. The policies and
actions carried out in terms of attractiveness by the Grand Est and Hauts-de-France regions convince
a majority of investors. 63%
For the regions you settled in, what were the main determining factors (maximum 3)
50%
48%
All regions
43% 42% Mostly acquisitions
38% or historical location
71%
33%
30%
25% 25% 25%
21% 20%
10% 13%
8% 7%
5% 4% 4%
0% 0%
Location
Workforce
Quality of life
Other
Quality of life
Other
Quality of life
Other
Location
Economic dynamism
Infrastructures
Implementation costs
Regional aids
Location
Workforce
Economic dynamism
Infrastructures
Implementation costs
Regional aids
Infrastructures
Implementation costs
Economic dynamism
Workforce
Regional aids
41%
34%
31%
Mostly acquisitions or
Are you satisfied with the policies and actions carried out by the regions in which you are located
historical location
to attract foreign investment?
Île de France Grand Est Hauts-de-France
2%
14%
5%
11%
29%
9%
44%
6%
53%
41%
Geographic Infrastructure Implementation Regional aid 39%
location quality costs
Economic Qualification Quality Other 36%
dynamism and availability of life 29%
17%
of workforce 5%
Very positive Positive Neutral Negative Very negative
18 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 19Focus – impact de la COVID-19 A violent crisis, but only temporary and without The government supporting the economy... … but triggering a debt deepening
consequences for France in the long run?
In line with the relative optimism regarding In an economy that has been slowing down The consequence of these ambitious
Nearly 60% of American investors believe that
the economic environment for the next 2-3 since March 2020 and the first lockdown, U.S. support measures is the substantial
the Covid crisis will not have any impact on
years, more than ¾ of US investors believe investors are praising the support measures increase in public debt, which worries 70%
their investments in the medium term.
that it will take 2 years or less to return to implemented by the French government. 96% of American investors. They fear strong fiscal
In particular, they note that the crisis has led
an economic activity comparable to 2019. of them find these measures as competitive, adjustments in the coming years to offset
them to postpone some investment decisions
More than 1/3 even think they could reach or even more competitive, than the measures this spending.
but should not cause them to change course.
that level in less than a year. implemented by of other European countries.
24% nevertheless think they will reduce their
Indeed, more than half of American investors
investments, particularly because of the post-
(53%) consider that these measures are more
crisis restructuring that will be necessary.
competitive compared to the rest of Europe.
Investors also positively welcome the recovery
plan. 96% of them consider it “as competitive”
as the other European countries or more with
39% of them finding it more competitive.
In your opinion, how long will it take your What will be the impact of the Covid-19 crisis How did your headquarters perceive What is your opinion regarding
company to return to its pre-Covid-19 on your investments in France in the medium the measures taken by the French public the public debt?
economic activity level? term? authorities to support companies since the
beginning of the Covid crisis?
In comparison with other European countries
3% 1% 4%
10% 4%
3%
21% 6%
22%
18%
42%
40%
43%
58%
40%
Don’t know
Much less competitive Don’t know
36% Very negative
Less competitive
More than five years Negative 28% Confident
As competitive
Three to five years Neutral Neutral
More competitive
One to two years 8% Positive 13% Worried
1% Much more
Less than a year Very positive competitive Very worried
2020 2020 2020 2020
20 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 21AmCham recommendations
The 2021 AmCham-Bain barometer took place in a very atypical period. It is therefore
essential to keep this in mind when reading the barometer results this year, as the different
trends may be impacted by this changing context in the coming months, which may result in
the acceleration or delay of certain factors.
1.
Enhancing the strengths of French regions
In the current context, the regions have that could be awarded to CEOs of Ameri-
demonstrated great agility and proximity can companies with a strong regional
to their populations and industries, and footprint who could testify about the
these are now more than ever key factor success of their own installation and
for France’s attractiveness. promote their development.
Relying on its members companies settled AmCham France is committed to keep
in the regions, AmCham France will on surveying U.S. companies located in
intensify its efforts to promote the regions the regions to better understand their
in the relocation of certain industries and needs and expectations and to share this
in the implementation of new growth information with regional executives.
opportunities pursued by the government
in association with regional executives and AmCham France will partner with the U.S.
local officials. Consulates and the U.S. Embassy in France
to actively strengthen the attractiveness
AmCham France recommends to of the regions.
better promote the assets and policies
implemented by the regions to attract
investments by giving them more
visibility among international investors.
In this perspective, AmCham France
encourages the creation of a status
of Regional Investment Ambassador
22 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 232. 4.
Seizing the crisis as an opportunity to strengthen the attractiveness Pursuing the ambitious impulse for innovation
of labor market
AmCham France welcomes and mechanisms that favor them. This key
Employment and labor law are seen as new entrepreneurial frameworks for career encourages the continued commitment to maintain research in our country and
obstacles for investment in our country. and labor management. With its resources of the government to support the new to foster joint investment opportunities
After a sizeable improvement in recent and talents, there is an opportunity economy, particularly in the face of the from abroad, and from the United States
years, especially since the 2017 labor law, for France to emerge stronger from crisis. These ambitious policies play an in particular. When it comes to innovation,
it is clear that the procedures are still these challenging times. Telework must essential role in France’s international it is crucial to remember that France and
perceived as somewhat complex and that therefore be seen as an opportunity and influence and the success of French Tech, the US are true partners.
the lasting instability of the social climate not as a threat. while strengthening the competitiveness
has finally taken its toll. This appears of the French innovation ecosystem. Proof AmCham France advocates for an
clearly in this year’s edition of AmCham France commits to initiate a of this is the fact that 86% of investors easier access to capital and financing,
the barometer. reflection in this subject in order to come have a positive or very positive perception encourages companies (especially
up with concrete proposals by the second of this ecosystem. SMEs) to continue their digitalization,
However, the societal transformation that half of 2021 that can be acted upon by the continues to support the development of
is taking shape in the light of the crisis public authorities. However, it has become clear in recent an entrepreneurial culture while working
may provide an opportunity to imagine weeks that France does not nurture the to adapt a regulatory framework that is
necessary risk culture for a successful increasingly favorable to innovation and
innovation policy. It is essential to change venture capital.
3. this mindset and to direct savings towards
innovative companies with structured
Transforming ecological transition and inclusion into drivers of attractiveness
AmCham France applauds the impulsion expectations towards companies take a
5.
of the Recovery Plan, which makes the global scale. Maintaining investors’ confidence by ensuring regulatory and tax predictability
ecological transition a driving force for
economic recovery. However, in order to make the ecological
AmCham France welcomes the 20 billion to reassure investors by giving them
transition and inclusion a driving force for
euro reduction in Production Tax and the more visibility on the policy measures
Today, 69% of American investors believe attractiveness, it is essential to highlight
progressive reduction of the Corporate considered to meet these challenges.
that France offers a regulatory framework innovative initiatives led by companies,
Income Tax rate to 25% by 2022. We are France’s operating debt should be clearly
that is conducive or even very conducive while strengthening consultation
convinced that these measures will allow dissociated from the investment debt
to the societal and environmental and collaboration between different
France to considerably strengthen its associated with the Covid crisis.
commitment of companies. We are economic sectors. The promotion
attractiveness and we therefore believe it is
convinced that France can play a major and encouragement of co-creative Moreover, even when some overriding
more essential than ever to maintain these
role in promoting the ecological transition approaches will favor the emergence of international policy objectives are pursued,
commitments over the long run.
in Europe and around the world by innovative, even disruptive, solutions, the consistency of the discourse and
making this transformation a real driver of which constitute one of the keys In the same way, for 70% of investors, the signals sent are essential to France’s
attractiveness for companies. It is all the to a sustainable and successful French public debt is a source of concern. attractiveness. AmCham will join in the
more important in a time when ecological ecological transition today. pursuit of this delicate balance.
transition is such a key topic for the Facing these uncertainties and the risks
transatlantic relations and when society they pose to investment dynamics,
AmCham France invites the government
24 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 25Methodology and interviewed About
American investor profiles
AmCham France published the first survey We collected 124 responses from companies
on the satisfaction of American investors in representing a total of more than 58,000
France in 1995. With the collaboration of Bain employees in France and more than 54 billion
& Company, the Barometer became an annual euros in sales in France. AmCham in France Bain & Company
event in 1999.
The sample of responding companies is
The AmCham-Bain Barometer, which is in its balanced and representative, both in terms AmCham France was founded in 1894 to Bain & Company is the international consulting
21st edition in 2021, meets 3 objectives: of company size, sector of activity and promote economic exchanges between firm that helps ambitious executives transform
geographic location in the Ile-de-France region France and the United States. As an their companies into pioneers of tomorrow’s
• To measure from one year to the next
or in the regions: it includes 42% of companies association, AmCham France offers a unique world.
the satisfaction of American investors
with more than 1,000 employees in France, space for networking to foster exchange and
in France and their perception of the Through 59 offices in 37 countries, we partner
42% of companies who have between 100 and promote constructive thinking, acting as
economic environment with our clients to achieve extraordinary
1,000 employees, and 16% of companies with a bridge between political, economic, and
results that enable them to outperform the
• Understand the strengths and weaknesses less than 100 employees. academic circles.
competition and redefine their industry.
of France for U.S. investments as well as
The most represented sector is the chemical/ Today, it brings together leading French and Our integrated and customized expertise
the “drivers” and “deterrents” of living in
parachemical sector (15% of respondents) American companies, as well as numerous provides companies with access to a dynamic
France for U.S. employees.
followed by research and consulting firms (14% academic and economic partners, attached ecosystem that brings together the most
• Gather the opinion of American investors of respondents). The pharmaceutical, IT and to fostering the transatlantic relationship. innovative digital and technology players.
on topics that made the economic news in transport sectors each make up 10%, 9% and Independent of any government and With this approach, our clients achieve better,
France, including the exceptional situation 8% of the sample. Among the other sectors convinced that businesses have a crucial faster and more sustainable results.
related to Covid-19. represented, we can cite food processing, role to play in bringing new ideas to the
Through our commitment to invest more
heavy industries, legal advice and tourism. The public debate, AmCham France develops
Between December 2020 and January 2021, than $1 billion over 10 years in volunteer
typology of the respondents is shown in the concrete proposals to meet the major societal,
we shared a questionnaire with the managers activities, we mobilize our talents, resources
graph below. economic, and environmental challenges.
of most French subsidiaries of American and expertise with non-profit associations and
companies. They are mainly managers: presidents and As such, AmCham France is committed organizations to address pressing challenges
directors of companies (35% of the sample) to strengthening France’s attractiveness. in education, racial and social equity, and
or other members of management On behalf of its members, AmCham France economic and environmental development.
committees (28%). works with public decision-makers to develop
Since the founding of Bain & Company
and consolidate a French environment that
in 1973, we have measured our success by
35% is favorable to international companies,
the companies that have placed their trust
28%
particularly American companies, which
in us: we are proud to have the highest
19%
are the leading foreign investors and
recommendation rate in the consulting
18%
employers in France.
industry.
Chairman and CEO Other Directors Institutional relations Other
26 21st edition AmCham-Bain Barometer 21st edition AmCham-Bain Barometer 27AmCham France Bain & Company 77 rue de Miromensil 25 avenue Kléber 75008 Paris, France 75116 Paris, France www.amchamfrance.org www.bain.com +33 1 56 43 45 67 +33 1 44 55 75 75
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