finnish technology industry, october 2016
TRANSCRIPT
1
Technology Industry /Finnish Economic Outlook
October 2016
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 (2015): 14.6 billion euros• Personnel (2015): 40,600
METALS INDUSTRY• Steel products, non-ferrous metals,
castings, metallic minerals
• Turnover (2015): 9.1 billion euros• Personnel (2015): 15,800
MECHANICAL ENGINEERING• Machinery, metal products, vehicles• Turnover (2015): 28 billion euros• Personnel (2015): 124,600
INFORMATION TECHNOLOGY• IT services, applications and programming• Turnover (2015): 11 billion euros• Personnel (2015): 59,300
CONSULTING ENGINEERING• Expertise for construction industry and
infrastructure • Turnover (2015): 5.5 billion euros • Personnel (2015): 48,200
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.• 75 % of private-sector R&D investment.• Almost 280,000 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 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
Electronics and electrotechnical industryMechanical engineeringMetals industryConsulting engineeringInformation technology
6*) In addition to goods exports the sector exported services worth some 11 billion euros.Source: National Board of Customs, Statistics Finland
Export of Technology Industry Goods from Finland by Area in 2015Total goods exports 26.7 billion euros*
North America2.6 billion €
Western Europe14.4 billion €53.7 %
South and Middle America0.9 billion €3.3 %
Central and Eastern Europe3.8 billion €14.6 %
Africa0.5 billion €1.9 %
Middle and Central East0.7 billion €2.5 %
Asia3.8 billion €14.4 %
05/02/2023 Technology Industries of Finland
Turnover of the Industry and Technology Industry in Finland
7Source: Macrobond, Statistics Finland
Index 2005=100 Change: 1-6,2016 / 1 -6,2015, %
90
95
100
105
110
115
120
125
130
135
140
Technology Industry-3 %Industry-2 %
Latest information: June, 20162005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
05/02/2023 Technology Industries of Finland
Turnover of the Technology Industry in Finland
8
Index 2005=100 Change: 1-6,2016 / 1 -6,2015, %
50
70
90
110
130
150
170
190
210
230
250
270
Electronics andElectrotechnical Industry-5 %
Mechanical Engineering-2 %Metals Industry-13 %
Consulting Engineering9 %
Information Technology0 %
Latest information: June, 20162005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Macrobond, Statistics Finland05/02/2023 Technology Industries of Finland
Value of New Orders in the Technology Industry* in Finland
9Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information April-June 2016
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,00011,00012,000
Combined
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: II,2016 / II,2015 II,2016 / I,2016Export: -27 % -2 %Domestic: -17 % -6 %Combined: -24 % -3 %
*) Excluding metals industry and game industry companies
05/02/2023 Technology Industries of Finland
Value of Order Books in the Technology Industry* in Finland
10Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information 30.6.2016
02,0004,0006,0008,000
10,00012,00014,00016,00018,00020,00022,00024,00026,000
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.6.2016 / 30.6.2015 30.6.2016 / 31.3.2016Export: +5 % -6 %Domestic: -1 % -4 %Combined: +4 % -6 %
*) Excluding metals industry and game industry companies
05/02/2023 Technology Industries of Finland
Combined
Value of New Orders in the Electronics and Electrotechnical Industry in Finland
12Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information April-June 2016
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,000
Combined
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: II,2016 / II,2015 II,2016 / I,2016Export: +2 % -2 %Domestic: +3 % -4 %Combined: +2 % -2 %
05/02/2023 Technology Industries of Finland
Value of Order Books in the Electronics and Electrotechnical Industry in Finland
13
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Ghange: 30.6.2016 / 30.6.2015 30.6.2016 / 31.3.2016Export: +7 % +2 %Domestic: +12 % 0 %Combined: +8 % +1 %
05/02/2023 Technology Industries of Finland
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information 30.6.2016
Combined
Value of New Orders in the Mechanical Engineering in Finland
14Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information April-June 2016
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,0005,500
Combined
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: II,2016 / II,2015 II,2016 / I,2016Export: -44 % -2 %Domestic: -25 % -11 %Combined: -40 % -5 %
05/02/2023 Technology Industries of Finland
Value of Order Books in the Mechanical Engineering in Finland
15Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information 30.6.2016
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,00011,00012,00013,00014,00015,000
Export Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.6.2016 / 30.6.2015 30.6.2016 / 31.3.2016Export: +5 % -9 %Domestic: -8 % -5 %Combined: +2 % -8 %
05/02/2023 Technology Industries of Finland
Combined
Value of New Orders in the Consulting Engineering in Finland
16Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information April-June 2016
0
50
100
150
200
250
300
350
Combined
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: II,2016 / II,2015 II,2016 / I,2016Export: -22 % -19 %Domestic: -1 % 0 %Combined: -4 % -2 %
05/02/2023 Technology Industries of Finland
Value of Order Books in the Consulting Engineering in Finland
17Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information 30.6.2016
050
100150200250300350400450500550600650700750
Export Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.6.2016 / 30.6.2015 30.6.2016 / 31.3.2016Export: -3 % -2 %Domestic: +13 % -1 %Combined: +10 % -1 %
05/02/2023 Technology Industries of Finland
Combined
Value of New Orders in the Information Technology in Finland
18Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information April-June 2016
050
100150200250300350400450500550600650700750800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: II,2016 / II,2015 II,2016 / I,2016Combined: -21 % -1 %
05/02/2023 Technology Industries of Finland
Value of Order Books in the Information Technology* in Finland
19Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, latest information 30.6.2016
0200400600800
1,0001,2001,4001,6001,800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.6.2016 / 30.6.2015 30.6.2016 / 31.3.2016Combined: +1 % -4 %
*) Excluding game industry companies
05/02/2023 Technology Industries of Finland
Technology Industry Personnel
2005/02/2023 Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey
150000
175000
200000
225000
250000
275000
300000
325000
350000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Personnel in Finland Personnel in subsidiaries abroad(30.6)
Some 16,000 of personnel affected by temporary or part-time lay-offs 30.6.2016
Technology Industries of Finland
Technology Industry Personnel in Finland by Branch
2105/02/2023 Source: Statistics Finland, 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 2016
Electronics and Electrotechnical IndustryMechanical engineering
Metals industryConsulting engineering
Information technology
Technology Industries of Finland
Technology Industry Personnel in Subsidiaries Abroad by Branch
2205/02/2023 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
23
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
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
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 Autumn 2016
25
- Finland is in the grip of structural change. Development remains uneven between companies. - Turnover in Finland increased slihtly in 2015 compared to the year 2014. Turnover totalled EUR 68.2 billion. In the pre-crisis year 2008 it was EUR 86 billion. - The monetary value of new orders reported between April-June 2016 was 24 % lower than in the corresponding period in 2015, and three per cent lower than in the preceding quarter. The 2015 comparison period included a major ship order.- At the end of June, the value of order books was four per cent higher year-on-year, but six per cent below the value reported at the end of March. - The turnover of technology industry companies is expected to remain at the same or a slightly lower level in the autumn of 2016 than in the corresponding period last year. - Since 2008, personnel numbers in Finland have shrunk by 40,000 employees, totalling on average 286,000 at the end of June 2016.
05/02/2023
l
Technology Industries of Finland
World Economic Outlook- Finland as a Part of Global Economy
2605/02/2023 Technology Industries of Finland
GDP Has Grown in Europe and the USA, but only Slightly in Finland
2705/02/2023 Lähde: Macrobond
Index 2005=100
90
95
100
105
110
115
120
125
Latest information: 2016 Q32005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SwedenEstoniaUSAGermanyUKFranceSpainFinland
Technology Industries of Finland
2805/02/2023 Lähde: Macrobond
Growth is Lowering in China, Remaining Fast in India, Recession Continues in Russia and in Brazil Share of global GDP in China, Brazil and Russia is 23%, in China 16% (adjusted for PP)
GDP change over the previous year, %
-15
-10
-5
0
5
10
15
20
Latest information: 2016 Q22005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
IndiaChinaBrazilRussia
Technology Industries of Finland
2905/02/2023 Latest information September 2016 Source: Markit
GDP Growth Has Continued in Eurozone in September, but at the Slower Rate Purchase Managers’ Index (PMI), 50 = no change from previous month
Technology Industries of Finland
30
Industrial Production Volume
05/02/2023 Source: Macrobond
Index 2008=100
65
70
75
80
85
90
95
100
105
110
Latest information: August, 20162008 2009 2010 2011 2012 2013 2014 2015 2016
USAEU countriesJapanFinland
Technology Industries of Finland
Industrial Production Volume in the EU Countries
3105/02/2023 Source: Macrobond
Index 2008=100
70
80
90
100
110
120
130
140
150
Latest information: August, 20162008 2009 2010 2011 2012 2013 2014 2015 2016
PolandEstoniaBelgiumAustriaGermanySwedenSpainItalyFinland
Technology Industries of Finland
Global Industrial Production Growth Continues at a Slow Rate
3205/02/2023 Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis
Index 2008=100
80
90
100
110
120
130
140
150
Latest information: July 20162008 2009 2010 2011 2012 2013 2014 2015 2016
Emerging countriesWorldDeveloped countries
Technology Industries of Finland
3305/02/2023 Latest information September 2016 Source: Markit
Industrial Production in China is Unchanged Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries of Finland
3405/02/2023 Latest information September 2016 Source: Markit
Industrial Production in Russia is Slightly Growing Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries of Finland
3505/02/2023 Latest information September 2016 Source: Markit
Industrial Production in Brazil is Dropping Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries of Finland
36Source: Macrobond
Industrial Production in USA is Slightly IncreasingPurchase Managers’ Index (PMI) in manufacturing industry 50 = no change from previous month
323436384042444648505254565860
Latest information: September, 20162005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Technology Industries of Finland
05/02/2023
37Source: Macrobond
Growth of Residence Construction Has Lowered in China Share of China in Asian GDP is 42% (adjusted for PP)
Change over previous year, %
-5
0
5
10
15
20
25
30
35
40
Latest information: elokuu 20162005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Technology Industries of Finland
05/02/2023
38Souce: Macrobond
Fixed Investments in Russia and Brazil are FallingShare of Russia in European GDP is 13 % (adjusted for PP)Share of Brazil in Latin American GDP is 35 % (adjusted for PP)
Change over previous year, %
-20
-16-12
-8-4
048
12162024
2832
Latest information: 2016 Q22008 2009 2010 2011 2012 2013 2014 2015 2016
Russia Brazil
Technology Industries of Finland
05/02/2023
39Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis
Global Trade is Developing Sluggish Import volume development
Index 2008=100
80
90
100
110
120
130
140
Latest information: July 20162008 2009 2010 2011 2012 2013 2014 2015 2016
Emerging AsiaEmerging countriesWorldDeveloped countries
Technology Industries of Finland
05/02/2023
Import to China Has Reduced from Several Countries
40Source: Macrobond
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: August 20162008 2009 2010 2011 2012 2013 2014 2015 2016
North AmericaIndonesiaTaiwanSouth KoreaJapanEU countriesIndia
Technology Industries of Finland
05/02/2023
Exports from EU Countries to Russia Have Fallen, but Stabilized
41Source: Macrobond
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: July 20162005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EstoniaUKBelgiumAustriaFranceGermanyItalyNetherlandsSwedenNorwayDenmarkFinland
Technology Industries of Finland
05/02/2023
Russia’s Share* of Technology Industry Exports from Finland Has Lowered by Five Per Cent
42*) Soviet Union up to 1991Source: Finnish Customs
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
048
1216202428323640
Technology Industries of Finland
05/02/2023
43Lähde: IMF (July 2016)
Global Economy is Expected to Grow by 3.1 % in 2016 GDP growth in 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 America
Western EuropeJapan
ChinaIndia
Rest
of
East
ern
Euro
pe
Russ
ia
Braz
il M
exico
Re
st o
f La
tin A
mer
ica
Mid
dle
East
an
d Af
ricaAverage growth:
+3,1 %
The width of the bar indicates the share of global GDP in 2015 (adjusted for purchasing power parity), %
Rest of Asia
Technology Industries of Finland
05/02/2023
44Source: IMF (July 2016), Board of Customs
Export Demand for Technology Industry in Finland Will Grow by 2.0 % in 2016 GDP growth 2016 / 2015, %
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 of Asia
Rest
of
East
ern
Euro
pe
Russ
ia
Braz
il Rest
of L
atin
Am
erica
Mid
dle
East
and
Afri
ca
Average growth: +2.0 % M
exico
The width of the bar indicates the export share of technology industry from Finland in 2015, % Technology Industries of Finland
05/02/2023
Finland’s Economic Growth Relies on Exports and Investments
45Technology Industries of Finland
05/02/2023
Technology-, Forest- and Chemical Industry Cover 80 % of Finnish Export RevenuesGoods and services exports: billion euros and the shares of Finnish exports 2015
46Source: Board of Customs, Statistics Finland (National Accounts, Foreign Trade of Services)
Technology industry38 billion €
50%
Forest industry12.21 billion €
16%
Chemical industry10.94 billion €
14%
Other branches15.43 billion €
20%
Technology industry Forest industry Chemical industry Other branchesTechnology Industries of Finland
05/02/2023
47Source: Macrobond, Eurostat
Finnish Exports up to EUR 30 Billion Short of Annual Target Level
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 Q22005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exports realized
Technology Industries of Finland
05/02/2023
Finnish Exports Lagging Behind Competitors
48Source: Macrobond, Eurostat
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 Q22005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
PolandEstoniaCzech RepublicGermanySpainBelgiumSwedenFinland
Technology Industries of Finland
05/02/2023
Finland’s Industrial Production and Exports Will Not Regain the Level of 2008 with the Present Production CapacityFinland’s production capacity has decreased by 20 %
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-21 %
2008 2009 2010 2011 2012 2013 2014 2015 2016
-22 %
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
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
Total tax ratio, % of GDPright axisCentral government debt,left axisPublic expenditures, during the quarter,left axisLocal government debt,left axis
Latest information: 2016 Q1
Technology Industries of Finland
05/02/2023
Upswing of Investments Recuired in Finland of Investments Required in Finland
5105/02/2023 Source: OECD, Economic Outlook
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e 2016e 2017e859095
100105110115120125130135140145150155
Corporate sector fixed investments, index 2005=100
Swedenthe NetherlandsUSAGermanySwitzerlandFinland
Technology Industries of Finland
52Source: Statistics Finland (National Accounts, Confederation of Finnish Industries’ Investment Survey (June 2016)
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 2016e0
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 20 to 30 main trade partners, as well as the development of unit labour costs for the total economy.Latest information I/2016. Source: European Central Bank
The Competitiveness Pact in the Labour Market was an Essential Achievement Unit labour costs in the whole economy = labour costs / productivity, including the influence of effective exchange rates
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201990
95
100
105
110
115
120
125
Finland compared to the Eurozone, actual changeThe Competitiveness Pact + moderate wage increases in the coming yearsGovernment's objective for improving the cost competitiveness
Finland’s cost competitiveness declines
Finland’s cost competitiveness improves
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2005,I =100
Technology Industries of Finland
05/02/2023
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 2014
58
7106938%
2808914%
2599717%
5861731%
143991%
80 5%
46 3%
23 1%
Number of enteprises / 1 583 Number of personnel / 183 772
1–249 employees 500–999 employees1000– employees250–499 employees
Technology Industries of Finland
05/02/2023
The Federation’s SME Member Companies 2014
59
506 35%
475 33%
258 18%
206 14%
Number of enterprises / 1 439 Number of personnel / 71 069
1–19 employees20–49 employees
50–99 employees100–249 employees
52617%
1504721%
1826327%
3249845%
Technology Industries of Finland
05/02/2023