Aerospace Thrives While Commerce in Crisis in Landes Region
The Landes region experiences growth in aerospace, but local commerce struggles significantly amid economic challenges.
Key Points
- • Aerospace sector is thriving despite challenges.
- • Commerce sector faces significant difficulties, especially local businesses.
- • Investment and cash flow issues are prevalent across the region.
- • Employment outlook remains tepid with declining orders and revenues.
The Landes region's economy faces a dual reality as mid-2025 assessments reveal a booming aerospace sector contrasted by significant challenges in commerce. A semi-annual report from the Chamber of Commerce and Industry (CCI) highlights that while the aerospace sector is growing robustly, local commerce is struggling to cope with inflationary pressures.
According to the CCI's report, which surveyed 235 businesses in May 2025, the aerospace industry has remained a bright spot in Landes' economic landscape, engaging in markets like civil aviation and defense despite facing labor shortages and supply chain issues. Pascal Dussin, director of the CCI's Economic Information department, described the overall economic scenario as resilient yet marked by tensions, with no sector booming fully. He noted that "commerce is perhaps the most troubled sector today," as local businesses face difficulties selling amidst soaring inflation rates.
Investment in the region is reportedly stagnant, with Dussin stating, "investment is struggling to take off," despite some significant projects underway. Moreover, cash flow issues plague many enterprises, with half reporting financial difficulties. These issues are compounded by a lukewarm employment outlook, characterized by cautious hiring practices and declining orders and revenues.
Despite these hurdles, the CCI president maintains a cautious optimism for the latter half of 2025, believing the region has the capacity to recover from economic shocks and uncertainties.