France's manufacturing sector, once the powerhouse of its postwar economic recovery, has undergone significant changes. Currently, it stands as the world's 8th largest and contributes around 10% to the country's GDP, employing about one - fourth of the workforce.

In the 1950s and 1960s, manufacturing in France witnessed rapid growth in production and employment, driven by new market openings and rising incomes. However, from the mid - 1970s, it entered a period of decline. Deindustrialization ensued as domestic demand dropped and foreign competition intensified. Investment declined, impeding modernization and weakening competitiveness. In recent years, there has been a resurgence in investment and output, yet industrial employment continues to fall.

The manufacturing landscape in France is diverse. Key sectors include vehicles, with major players like Peugeot (including Citroën) and Renault; chemicals, where firms such as Rhône - Poulenc are prominent; metallurgy, which has seen restructuring; mechanical and electrical engineering; electronics, although the consumer electronics segment lags; food and beverages, reflecting the country's rich agricultural base; and textiles, which has faced long - term decline due to foreign competition.

In recent times, the French government has been implementing policies to boost manufacturing. The "France 2030" plan, for example, aims to invest in future - oriented industries. However, challenges remain, such as the need for further modernization, addressing skills shortages, and enhancing cost - competitiveness in the face of global competition.