The Hérault economy is suffering but is showing encouraging signs for the future

André Deljarry, President of the Hérault Chamber of Commerce and Industry: “The department has more than 104,000 companies, which is a sign of economic dynamism”. Midi Libre – SYLVIE CAMBON

President of the Hérault Chamber of Commerce and Industry, André Deljarry gave an overview of the department's economy during a press conference.

The economic situation in the department is "complicated", but "there are indicators that allow us to look to the future with hope". This is, in essence, the message delivered on Monday, September 16, during a back-to-school press briefing by André Deljarry, president of the Hérault Chamber of Commerce and Industry (CCI Hérault).

The president of the departmental consular chamber points out that the current context is hardly bright for businesses. " The situation is not good", he hammered home, recalling the various crises that "for the past 5 years", have weighed down economic activity: yellow vests, Covid, rising energy costs, among others.

“46% of companies see a drop in their margin”

This has resulted in a certain wait-and-see attitude on the part of business leaders since 2019. “42% of them say that their margin has had to be lowered due to the poor economic situation, 46% say that their activity is down and 43% consider their cash flow to be low”.

Of course, there was the PGE, the loan guaranteed by the State, introduced during the Covid crisis. “But it will have to be repaid in full by the end of 2025, beginning of 2026”. And the president of the CCI Hérault recalled that "the State played its role during the crisis".

Sign of dynamism: business creations

However, “important factors” show that we can look to the future with some hope. “First, there is the essential observation, which is that we have always kept, in this department, a significant base of companies”.

When he arrived at the head of the CCI Hérault, in 2011, Hérault had 56,000 registered companies. “There are now 104,000 of them”. Since the beginning of the year, “more than 4,000 have been created, which is a sign of a certain dynamism”.

The drop in the cost of energy is favorable to activity

Above all, the main indicators that have been weighing down the business economy in recent months are beginning to improve. “The price of energy is falling, interest rates are falling, unemployment is stable, and new businesses are still being created”: all signs that suggest a better context in the months to come.

Shattered by the rise in rates in recent months and by the burden of charges to be borne, particularly due to inflation in the price of electricity and gasoline, business leaders are keeping their spirits up, recalls André Deljarry. He even calls on them to "go see their banker to renegotiate the rates".

The sectors that illustrate the change in activity

The "tunnel"successive crises must also encourage bosses to review their model. “Companies are in a price war, there are fewer markets, we must take advantage of this to ask ourselves the question of a change of model to move towards success”.

The consular chamber supports companies engaged in this approach. “There are dynamic sectors, which are already successful, these are digital, cybersecurity, the blue economy, cinema, industry in the West Hérault”. So many sectors that illustrate the transformation of the Hérault economy.

“The creation of more than 10,000 jobs in the next 5 years”

André Deljarry gives a figure on the future prospects of the departmental economy. “These new sectors will lead to the creation of more than 10,000 jobs in the next 5 years”, he insists. “Of course, there will be job losses, but we will have to know how to evolve, to question ourselves”.

Among the levers to be favored, there is also the international. A reminder: “companies that engage in this export path have the possibility of seeing their activity generally grow by 10% to 15%”.