French Companies Accelerate Plans to Expand in the United States Despite Macron’s Domestic Investment Appeal

French companies are moving forward with ambitious plans to expand operations in the United States, signaling a growing shift in corporate strategy that prioritizes the American market over President Emmanuel Macron’s push for increased domestic investment.

During a recent high-level summit with business leaders, President Macron made a direct appeal to France’s corporate elite, urging them to scale back overseas expansion and reinvest profits into France’s industrial base. However, the message has largely been met with resistance, as executives weigh the benefits of a more competitive and predictable business environment abroad.

The United States continues to stand out as a preferred destination for French firms due to its pro-business climate, stable regulatory framework, access to skilled labor, lower energy costs, and powerful consumer market. For many French multinational corporations, expanding or relocating operations to the U.S. is viewed as a strategic necessity in an increasingly globalized and competitive economy.

There are several key factors driving the increased interest in the U.S.:

- Tax Incentives & Subsidies: The Inflation Reduction Act and other federal and state-level incentive programs are offering substantial tax breaks and subsidies for foreign companies in sectors like clean energy, advanced manufacturing, and automotive innovation.

- Energy Stability: Lower and more stable energy costs in the U.S. compared to Europe — especially in light of the energy crisis following the war in Ukraine — are giving American facilities a significant advantage in operational budgeting.

- Market Access: With a GDP of over $26 trillion, the U.S. is still the world’s largest consumer market, making it a natural target for French exporters and manufacturers seeking to be closer to their customers.

- Innovation Ecosystems: The United States remains a global leader in technology, R&D, and venture capital, making it an ideal location for firms in biotech, AI, aerospace, and advanced manufacturing.

Many of France’s most influential companies already have a deep footprint in the United States, and several are doubling down on their presence:

- Airbus: Operating a major final assembly line in Mobile, Alabama, Airbus continues to grow its U.S. presence in the commercial and defense aerospace sectors.

- TotalEnergies: Investing heavily in U.S. renewable energy and LNG infrastructure, particularly in Texas and the Gulf Coast.

- Sanofi: The pharmaceutical giant maintains multiple R&D facilities and manufacturing plants across the U.S., particularly in Massachusetts and Pennsylvania.

- L’Oréal: With a major distribution and manufacturing base in the U.S., L’Oréal continues to expand its American operations to meet growing demand.

- Schneider Electric: Operating over 100 facilities in the U.S., the company is deeply embedded in the American energy, automation, and industrial control markets.

- BNP Paribas: Through its subsidiary Bank of the West and other investment arms, BNP Paribas maintains a significant financial services operation in the U.S.

- Alstom: The rail and transport giant is increasingly focusing on the U.S. rail modernization push, supplying equipment and maintenance solutions for Amtrak and regional projects.

Macron’s administration has called for French companies to “do their part” in revitalizing the domestic economy, especially amid concerns about deindustrialization, high unemployment in some regions, and France’s competitiveness within the EU. However, the reality on the ground suggests that global market dynamics are driving corporate decisions faster than national policy can redirect them.

The choice to expand in the U.S. is less about abandoning France and more about future-proofing business models. French companies see the U.S. not just as a destination for exports, but as a base for production, innovation, and long-term strategic growth.

Unless significant reforms are made to improve the ease of doing business, reduce labor costs, and stabilize the energy market in France, the trend of increased U.S. investment by French firms is likely to continue — and accelerate.