Technology Industry / Finnish Economic Outlook April 2017 1 07/05/2022 Technology Industries of Finland
1
Technology Industry /Finnish Economic Outlook
April 2017
05/02/2023 Technology Industries of Finland
2
The Finnish Technology Industry Is Comprised of Five Sub-Sectors
05/02/2023 Technology Industries of Finland
ELEKTRONICS AND ELECTROTECHNICAL INDUSTRYABB, Ensto, Microsoft Mobile, Murata Electronics, Nokia, Planmeca, Polar Electro, Suunto, Vacon, Vaisala…
METALS INDUSTRYBoliden, Componenta, Kuusakoski, Luvata, Outokumpu, Outotec, Ovako, Sacotec, SSAB …
MECHANICAL ENGINEERINGAbloy, Cargotec, Finn-Power, Fiskars, Glaston, Kone, Konecranes, Metso, Meyer Turku, Normet, Oras, Patria, Pemamek, Ponsse, Stala, Valmet, Valtra, Wärtsilä…
INFORMATION TECHNOLOGYAffecto, Basware, Bilot, CGI, Comptel, Digia, Efecte, Enfo, F-Secure, Fujitsu Finland, IBM, Innofactor, Knowit, Microsoft, Nixu, Tieto…
CONSULTING ENGINEERINGA-Insinöörit, Citec, Elomatic, Etteplan, FCG,Granlund, Neste Jacobs, Pöyry, Ramboll,Rejlers, SITO, SWECO, WSP…
3
The Finnish Technology Industry Is Comprised of Five Sub-Sectors
ELEKTRONICS AND ELECTROTECHNICAL INDUSTRY• Data communications equipment, electrical
machinery, medical technology• Turnover (2016): 14.3 billion euros• Personnel (2016): 38,000
METALS INDUSTRY• Steel products, non-ferrous metals,
castings, metallic minerals
• Turnover (2016): 8.7 billion euros• Personnel (2016): 15,400
MECHANICAL ENGINEERING• Machinery, metal products, vehicles• Turnover (2016): 28.2 billion euros• Personnel (2016): 122,400
INFORMATION TECHNOLOGY• IT services, applications and programming• Turnover (2016): 11.4 billion euros• Personnel (2016): 60,400
CONSULTING ENGINEERING• Expertise for construction industry and
infrastructure • Turnover (2016): 6.0 billion euros • Personnel (2016): 49,800
05/02/2023 Technology Industries of Finland
The Technology Industry – the Largest Export Sector in Finland
4
• 50 % of total Finnish exports.• Companies invest about EUR 5.5 billion
annually in Finland.• 70 % of private-sector R&D investment.• Almost 290,000 employed directly in the
sector, 700,000 employed in total, equalling about 30% of the entire Finnish labour force.
• Technology Industries of Finland has over 1,600 member companies.
05/02/2023 Technology Industries of Finland
Turnover of the Technology Industry in Finland
5Source: Macrobond, Statistics Finland, Technology Industries of Finland 05/02/2023 Technology Industries of Finland
Billion euros, at current prices
0
4
8
12
16
20
24
28
32
36
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Electronics and electrotechnical industryMechanical engineeringMetals industryConsulting engineeringInformation technology
6*) In addition to goods exports the sector exported services worth some 12.3 billion euros (2015).Source: National Board of Customs, Statistics Finland
Export of Technology Industry Goods from Finland by Area in 2016Total goods exports 25.2 billion euros*
North America2.5 billion €9.8 %
Western Europe13.7 billion €53.9 %
South and Middle America0.8 billion €3.2 %
Central and Eastern Europe3.8 billion €15.0 %
Africa0.4 billion €1.7 %
Middle and Central East0.5 billion €1.8 %
Asia3.7 billion €14.6 %
05/02/2023 Technology Industries of Finland
Technology, Forest and Chemical Industries Provide 80 % of Finland's Goods and Services Exports Revenue Goods and service exports: billion euros and the share of Finnish exports in 2016*
7*) Service exports industry-specific data for the year 2015. Source: Board of Customs, Statistics Finland (National Accounts, Foreign trade in services)
Technology industry50%
Forest industry15%
Chemical industry15%
Other sectors20%
05/02/2023 Technology Industries of Finland
Turnover of the Industry and Technology Industry in Finland
8Source: Macrobond, Statistics Finland
Index 2005=100 Change: 1-1,2017 / 1 -1,2016, %
90
95
100
105
110
115
120
125
130
135
140
Technology Industry14 %Industry13 %
Latest information: January, 20172005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
05/02/2023 Technology Industries of Finland
Turnover of the Technology Industry in Finland
9
Index 2005=100 Change: 1-1,2017 / 1 -1,2016, %
50
70
90
110
130
150
170
190
210
230
250
270
Electronics andElectrotechnical Industry21 %
Mechanical Engineering19 %Metals Industry22 %
Consulting Engineering13 %
Information Technology10 %
Latest information: January, 20172005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Macrobond, Statistics Finland05/02/2023 Technology Industries of Finland
Value of New Orders in the Technology Industry* in Finland
10Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation October-December 2016
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,00011,00012,00013,000
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: IV,2016 / IV,2015 IV,2016 / III,2016Export: -2 % +20 %Domestic: 0 % +30 %Combined: -1 % +23 %
*) Excluding metals industry and game industry companies
Technology Industries of Finland
05/02/2023
Value of Order Books in the Technology Industry* in Finland
11Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation 31.12.2016
02,0004,0006,0008,000
10,00012,00014,00016,00018,00020,00022,00024,00026,000
Domestic
Export
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 31.12.2016 / 31.12.2015 31.12.2016 / 30.9.2016Export: -3 % +2 %Domestic: -7 % +1 %Combinedä: -4 % +2 %
*) Excluding metals industry and game industry companies
Combined
Technology Industries of Finland
05/02/2023
Tender Requests* Received by Technology Industry Companies in Finland
12
*) Have you experienced a notable increase or decrease in the number of requests for tenders in recent weeks in comparison to the situation three months ago?”. Balance figure = the number of companies receiving more requests - the number of companies receiving less requests.Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation January 2017
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Balance figure
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Technology Industries of Finland
05/02/2023
Value of New Orders in the Electronics and Electrotechnical Industry in Finland
13
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,000
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: IV,2016 / IV,2015 IV,2016 / III,2016Export: -5 % +16 %Domestic: -21 % -8 %Combined: -9 % +11 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation October-December 2016
Technology Industries of Finland
05/02/2023
Value of Order Books in the Electronics and Electrotechnical Industry in Finland
14
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Export
Domestic
Million euros, at current prices
Change: 31.12.2016 / 31.12.2015 31.12.2016 / 30.9.2016Export: -2 % +9 %Domestic: -15 % -15 %Combined: -4 % +4 %
Combined
2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation 31.12.2016
Technology Industries of Finland
05/02/2023
Value of New Orders in the Mechanical Engineering in Finland
15
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,0005,500
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: IV,2016 / IV,2015 IV,2016 / III,2016Export: +1 % +26 %Domestic: +22 % +55 %Combined: +6 % +32 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation 31.12.2016
Technology Industries of Finland
05/02/2023
Value of Order Books in the Mechanical Engineering in Finland
16
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,00011,00012,00013,00014,00015,00016,000
Export Domestic
Million euros, at current prices
Change: 31.12.2016 / 31.12.2015 31.12.2016 / 30.9.2016Export: -4 % 0 %Domestic: -7 % +5 %Combined: -4 % +1 %
Combined
2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation 31.12.2016
Technology Industries of Finland
05/02/2023
Value of New Orders in the Consulting Engineering in Finland
17
0
50
100
150
200
250
300
350
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Muutos: IV,2016 / IV,2015 IV,2016 / III,2016Vientiin: +9 % -62 %Kotimaahan: +13 % +22 %Yhteensä: +13 % -2 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation October-December
Technology Industries of Finland
05/02/2023
Value of Order Books in the Consulting Engineering in Finland
18Source: The Federation of Finnish Technology Industries’ order book survey’s respondent comnpanies, last observation 31.12.2016
050
100150200250300350400450500550600650700750
Export Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 31.12.2016 / 31.12.2015 31.12.2016 / 30.9.2016Export: +67 % -1 %Domestic: +4 % +1 %Combined: +14 % 0 %
Combined
Technology Industries of Finland
05/02/2023
Value of New Orders in the Information Technology in Finland
19
050
100150200250300350400450500550600650700750800
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: IV,2016 / IV,2015 IV,2016 / III,2016Combined: -2 % +52 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation October-December 2016
Technology Industries of Finland
05/02/2023
Value of Order Books in the Information Technology* in Finland
20
0200400600800
1,0001,2001,4001,6001,800
2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 31.12.2016 / 31.12.2015 31.12.2016 / 30.9.2016Combined: -6 % +5 %
*) Excluding game industry companies
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, last observation 31.12.2016
Technology Industries of Finland
05/02/2023
Technology Industry Personnel in Finland and Abroad
21Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey
2008 2009 2010 2011 2012 2013 2014 2015 2016150,000
170,000
190,000
210,000
230,000
250,000
270,000
290,000
310,000
330,000
350,000
Personnel in Finland Personnel in subsidiaries abroad
Some 11,000 of personnel affected by temporary or part-time lay-offs 31.12.2016
Technology Industries of Finland
05/02/2023
Technology Industry Personnel in Finland by Branch
22
0
25000
50000
75000
100000
125000
150000
175000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Electronics and electrotechnical industryMechanical engineering
Metals industryConsulting engineering
Information technology
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond05/02/2023 Technology Industries of Finland
Technology Industry Personnel in Subsidiaries Abroad by Branch
2305/02/2023 Source: The Federation of Finnish Technology Industries’ labour force survey
0
25000
50000
75000
100000
125000
150000
175000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Electronics and Electrotechnical IndustryMechanical engineering
Metals industryConsulting engineering
Information technology
Technology Industries of Finland
Retirement of Technology Industry Personnel in Finland
24
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Number of individuals retired Number of individuals retiring (estimation)
Salaried employees
Blue collar employees
Individuals per year
Source: Wage inquiry of the Techonology Industries of Finland, Finnish Centre for Pensions, Statistics FinlandTechnology Industries of Finland
05/02/2023
Retirement of Technology Industry Blue Collar Employees in Finland
25
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
0
500
1000
1500
2000
2500
3000
3500
Mechanical engineering Metals industry Electronics and electrotechnical industry
Individuals per year
Source: Wage inquiry of the Techonology Industries of Finland, Finnish Centre for Pensions, Statistics FinlandTechnology Industries of Finland
05/02/2023
Overview of the Situation in the Technology Industry and Outlook for Early 2017
26
- Turnover in Finland totalled some EUR 68.7 billion in 2016. This is about half per cent higher than in 2015. In January 2017 turnover was 14 % higher than last year at the same time. In 2008, prior to the financial crises, the corresponding figure was EUR 86 billion. - The monetary value of new orders reported between October-December 2016 was 23 % higher than in July-September, but slightly lower than in the corresponding period in 2015. - At the end of December, the value of order books was two per cent higher than at the end of September, but four per cent lower than in December 2015. - The turnover of technology industry companies in early 2017 is expected to be higher than in the corresponding period last year. - The number of personnel in Finland continued to fall slightly in 2016. Personnel declined by some one per cent, or by 2,500 employees from the average number in 2015. On average, the industry employed 286,000 people in 2016. In 2008, the industry employed a total of 326,000 people in Finland.
05/02/2023
l
Technology Industries of Finland
World Economic Outlook- Finland as a Part of Global Economy
2705/02/2023 Technology Industries of Finland
GDP Has Grown in Europe and the USA, but only Slightly in Finland
2805/02/2023 Lähde: MacrobondTechnology Industries of Finland
Index 2005=100
90
95
100
105
110
115
120
125
130
Latest information: 2017 Q12005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
SwedenEstoniaUSAGermanyUKFranceSpainFinland
2905/02/2023 Lähde: Macrobond
Growth is Lowering in China, Remaining Fast in India, Recession Continues in Brazil Share of global GDP in China, Brazil and Russia is 23%, in China 16% (adjusted for PP)
Technology Industries of Finland
GDP change over the previous year, %
-15
-10
-5
0
5
10
15
20
Latest information: 2016 Q42005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
IndiaChinaBrazilRussia
3005/02/2023 Latest information March 2017 Source: Markit
GDP Growth in the Euro Area Has Picked up During the last Months Purchase Managers’ Index (PMI), 50 = no change from previous month
Technology Industries of Finland
31
Industrial Production Volume
05/02/2023 Source: MacrobondTechnology Industries of Finland
Index 2008=100
65
70
75
80
85
90
95
100
105
110
Latest information: February, 20172008 2009 2010 2011 2012 2013 2014 2015 2016 2017
USAEU countriesJapanFinland
Industrial Production Volume in the EU Countries
3205/02/2023 Source: MacrobondTechnology Industries of Finland
Index 2008=100
70
80
90
100
110
120
130
140
150
Latest information: February, 20172008 2009 2010 2011 2012 2013 2014 2015 2016 2017
PolandEstoniaBelgiumAustriaGermanySwedenSpainItalyFinland
Industrial Production is Growing in Particular in Emerging Countries
3305/02/2023 Source: Macrobond, The CPB Netherlands Bureau for Economic Policy AnalysisTechnology Industries of Finland
Index 2008=100
80
90
100
110
120
130
140
150
Latest information: January 20172008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Emerging countriesWorldDeveloped countries
3405/02/2023 Latest information March 2017 Source: Markit
Industrial Production in China is Growing Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries of Finland
3505/02/2023 Latest information March 2017 Source: Markit
Industrial Production in Russia is Growing Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries of Finland
3605/02/2023 Latest information March 2017 Source: Markit
Industrial Production in Brazil Will Not Diminish Much Longeris Decreasing Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries of Finland
37Source: Macrobond
Industrial Production in USA is GrowingPurchase Managers’ Index (PMI) in manufacturing industry 50 = no change from previous month
323436384042444648505254565860
Latest information: March, 20172005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Technology Industries of Finland
05/02/2023
38Source: Macrobond
Growth of Residence Construction Has Lowered in China Share of China in Asian GDP is 42% (adjusted for PP)
Technology Industries of Finland
05/02/2023
Change over previous year, %
-5
0
5
10
15
20
25
30
35
40
Latest information: February 20172005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
39Souce: Macrobond
Fixed investment in Brazil Continue to DecreaseShare of Russia in European GDP is 13 % (adjusted for PP) Share of Brazil in Latin American GDP is 35 % (adjusted for PP)
Technology Industries of Finland
05/02/2023
Change over previous year, %
-20
-16-12
-8-4
048
12162024
2832
Latest information: 2016 Q42008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Russia Brazil
40Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis
World Trade Has Picked up Again Import volume development
Technology Industries of Finland
05/02/2023
Index 2008=100
80
90
100
110
120
130
140
Latest information: January 20172008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Emerging AsiaEmerging countriesWorldDeveloped countries
Imports to China Have Again Increased from Several Countries
41Source: MacrobondTechnology Industries of Finland
05/02/2023
US dollars, at current prices, 3 month moving sum, change over previous year, %
-60
-40
-20
0
20
40
60
80
100
120
Latest information: March 20172008 2009 2010 2011 2012 2013 2014 2015 2016 2017
North AmericaIndonesiaTaiwanSouth KoreaJapanEU countriesIndia
Exports from EU Countries to Russia Have Fallen, but Stabilized
42Source: MacrobondTechnology Industries of Finland
05/02/2023
Export value in each countries's own currency, 12 months sliding sum, index 2005 = 100
0
50
100
150
200
250
300
350
400
450
Latest information: February 20172005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EstoniaUKBelgiumAustriaFranceGermanyItalyNetherlandsSwedenNorwayDenmarkFinland
Russia’s Share* of Technology Industry Exports from Finland Lowered to Some Five Per Cent During 2015-2016
43*) Soviet Union up to 1991Source: Finnish Customs
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
048
1216202428323640
Technology Industries of Finland
05/02/2023
44Source: IMF (January 2017)
Global Economy is Expected to Grow by 3,4 % in 2017 GDP growth in 2017, %
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100-4-3-2-10123456789
North AmericaWestern Europe
Japan
China India
Rest
of
East
ern
Euro
pe
Russ
ia
Braz
il Mex
ico Rest
of L
atin
A,
mer
ica
Mid
dle
East
an
d Af
ricaAverage growth:
+3,4 %
The width of the bar indicates the share of global GDP in 2015 (adjusted for purchasing power parity), %
Rest of Asia
05/02/2023 Technology Industries of Finland
45Source: IMF (January 2017), Board of Customs
Demand in the Finnish Technology Industry Export Market is Expected to Grow by 2.2 % in 2017 GDP growth 2017 / 2016, %
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100-4-3-2-10123456789
North AmericaWestern Europe
Japan
ChinaIndia
Rest ofAsia Re
st o
f Ea
ster
n Eu
rope
Russ
ia Braz
ilRe
st o
f Lat
in A
mer
icaM
iddl
e Ea
st a
nd A
frica
Average growth: +2.2 % M
exico
The width of the bar indicates the export share of technology industry from Finland in 2015, %05/02/2023 Technology Industries
of Finland
Finland’s Economic Growth Relies on Exports and Investments
46Technology Industries of Finland
05/02/2023
47Source: Macrobond, Eurostat
Finnish Exports up to EUR 30 Billion Short of Annual Target Level
Technology Industries of Finland
05/02/2023
Export of goods and services by quarter, billion euros at current prices
Exports neededto avoid extrarunning intodebt in thepublic sector
10
12
14
16
18
20
22
24
26
28
30
Latest information: 2016 Q42005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Exportsrealized
Finnish Exports Lagging Behind Competitors
48Source: Macrobond, EurostatTechnology Industries of Finland
05/02/2023
Export of goods and services by quarter, billion euros, at current prices, index 2005=100
75
100
125
150
175
200
225
250
275
Latest information: 2016 Q42005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
PolandEstoniaCzech RepublicGermanySpainBelgiumSwedenFinland
Export Growth is Limited Because Industrial Production Has Decreased by 20% Investments are vital for the production and export recovery
49
707580859095
100105110115120125
5500%
6000%
6500%
7000%
7500%
8000%
8500%
9000%
9500%
10000%
Industrial pro-duction ability (production with capacity in full use), left. Scale
Industrial pro-duction (2008=100), left scale
Capacity utiliza-tion rate, %, right scale-20 %
2008 2009 2010 2011 2012 2013 2014 2015 2016
-20 %
Source: Statistics Finland / National Accounts, Industrial volume indexTechnology Industries of Finland
05/02/2023
50Source: Macrobond, Eurostat
Growth of Public Expenditures, Debt and Tax Ratio in Finland Increased cost burden requires cuts to public sector
Technology Industries of Finland
05/02/2023
Central and local government debt and public expenditures, billion euros, at nominal prices
0
10
20
30
40
50
60
70
80
90
100
110
120
39,5
40,0
40,5
41,0
41,5
42,0
42,5
43,0
43,5
44,0
44,5
45,0
45,5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total tax ratio, % of GDPright axisCentral government debt,left axisPublic expenditures, during the quarter,left axisLocal government debt,left axis
Latest information: 2016 Q3
Business Investment in Finland Should Grow more Strongly than Predicted, the Current Development Is Inadequate
51Source: OECD, Economic Outlook (November 2016)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e859095
100105110115120125130135140145150155 Corporate sector fixed investments, index 2005=100
Sweden
the Netherlands
USA
Germany
Switzerland
Finland
Technology Industries of Finland
05/02/2023
52Source: Statistics Finland (National Accounts, Confederation of Finnish Industries’ Investment Survey (February 2017)
Industrial and Technology Industry Companies’ Investment Plans Indicate a Weak Economic Growth Industrial fixed and R&D investments in Finland
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e0
1,0002,0003,0004,0005,0006,0007,0008,0009,000
10,00011,00012,000
Manufacturing industry Technology industry, including information technology and consulting engineering
Million euros, at current prices
Technology Industries of Finland
05/02/2023
Investments and productivity* are Decisive for Finland’s Success Productivity of export sector is 10 % lower than in 2007-2008, productivity of entire national economy is 3 % lower
53*) Productivity is measured as real value added per hours worked. When productivity grows (the curve rises) value added grows more than hours worked. Value added = turnover – purchasing of materials and servicesValue added = labour costs + rents + depreciations + profits Source: Statistics Finland / National Accounts
Index 2005=100
75
80
85
90
95
100
105
110
115
120
125
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Manufacturing industryTechnology industryTotal economy
Technology Industries of Finland
05/02/2023
54*) In the ECB Harmonised Competitiveness Index, the average effective exchange rate of each country is calculated vis-à-vis 38 main trade partners, as well as the development of unit labour costs for the total economy.Latest information October-December 2016. Source: European Central Bank
Price and Cost Competitiveness in Finland Is still 14 % Waker than in Germany Compared to 2005Unit labour costs in the whole economy = labour costs / productivity, including the influence of effective exchange rates
90
95
100
105
110
115
120
125
Compared to Austria Compared to Belgium Compared to GermanyCompared to Spain Compared to Finland Compared to FranceCompared to Italy Compared to the Netherlands Compared to Portugal
2005,I =100Finland’s price and cost competitiveness declines
Finland’s price and costcompetitiveness improves
05/02/2023 Technology Industries of Finland
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
What Should Be Done in Finland?
55
• Support the renewal of the industry.
• Taxes should support growth and investment in Finland.
• Support decision making in companies related to compensation and working time
• No new European nor national burdens on companies, which are deteriorating the competitiveness.
Technology Industries of Finland
05/02/2023
Long-Term Outlook and Challenges
56
• Global Structural Change Set to Continue Apaceo Industrial production and services will relocate to rapidly developing economic areaso Strong growth, large markets, cheap labour and increasing expertise will increase the
attractiveness of these regions.• Competition over Skills and Raw Materials Set to Increase
o Due to an increase in retirement, the sector’s annual recruitment need in Finland will rise considerably in the coming years.
o The availability of reasonably-priced energy also threatens to become an investment bottleneck in Finland
• Combating Climate Changeo A challenge as costs are set to grow faster than in competitor countries o An opportunity for new environmental and energy technologies
Technology Industries of Finland
05/02/2023
Teknologiateollisuus
Technology Industries of Finland
5705/02/2023
The Federation’s Member Companies 2015
58
250–499 employees
7100639%
2762815%
2592514%
5754032%
1438 92 %
77 5 %
38 2 % 24
1 %
Number of enteprises / 1 577 Number of personnel / 182 099
1–249 employees 500–999 employees1000– employees
Technology Industries of Finland
05/02/2023
The Federation’s SME Member Companies 2015
59
493
34%
473 33 %
272
19%
200
14%
Number of enterprises / 1 438 Number of personnel / 71 006
51317%
1506021%
1906927%
3174645%
1–19 employees20–49 employees
50–99 employees100–249 employees
05/02/2023 Technology Industries of Finland