2. The Finnish Technology Industry Is Comprised of
Five Sub-Sectors
21/3/2017 Technology Industries
of Finland
ELEKTRONICS AND ELECTROTECHNICAL
INDUSTRY
ABB, Ensto, Microsoft Mobile,
Murata Electronics, Nokia, Planmeca,
Polar Electro, Suunto, Vacon, Vaisala…
METALS INDUSTRY
Boliden, Componenta, Kuusakoski,
Luvata, Outokumpu, Outotec,
Ovako, Sacotec, SSAB …
MECHANICAL ENGINEERING
Abloy, Cargotec, Finn-Power, Fiskars,
Glaston, Kone, Konecranes, Metso,
Meyer Turku, Normet, Oras, Patria,
Pemamek, Ponsse, Stala, Valmet,
Valtra, Wärtsilä…
INFORMATION TECHNOLOGY
Affecto, Basware, Bilot, CGI, Comptel,
Digia, Efecte, Enfo, F-Secure, Fujitsu
Finland, IBM, Innofactor, Knowit,
Microsoft, Nixu, Tieto…
CONSULTING ENGINEERING
A-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
3
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
1/3/2017 Technology Industries
of Finland
4. The Technology Industry –
the Largest Export Sector in Finland
4
• 51 % 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.
1/3/2017 Technology Industries
of Finland
5. Turnover of the Technology Industry in Finland
5Source: Macrobond, Statistics Finland1/3/2017 Technology Industries
of Finland
6. 6*) In addition to goods exports the sector exported services worth some 12.3 billion euros.
Source: National Board of Customs, Statistics Finland
Export of Technology Industry Goods from Finland
by Area in 2015
Total goods exports 26.7 billion euros*
North America
2.6 billion €
Western Europe
14.4 billion €
53.7 %
South and
Middle America
0.9 billion €
3.3 %
Central and Eastern Europe
3.8 billion €
14.6 %
Africa
0.5 billion €
1.9 %
Middle and
Central East
0.7 billion €
2.5 %
Asia
3.8 billion €
14.4 %
1/3/2017 Technology Industries
of Finland
7. Turnover of the Industry and Technology Industry
in Finland
7Source: Macrobond, Statistics Finland1/3/2017 Technology Industries
of Finland
8. Turnover of the Technology Industry in Finland
8Source: Macrobond, Statistics Finland1/3/2017 Technology Industries
of Finland
9. 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 July-September 2016
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
Combined
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: III,2016 / III,2015 III,2016 / II,2016
Export: -11 % +3 %
Domestic: +11 % -1 %
Combined: -6 % +1 %
*) Excluding metals
industry and game
industry companies
Technology Industries
of Finland
1/3/2017
10. 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 30.9.2016
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.9.2016 / 30.9.2015 30.9.2016 / 30.6.2016
Export: 0 % +1 %
Domestic: -2 % -4 %
Combined: -1 % 0 %
*) Excluding metals
industry and game
industry companies
Combined
Technology Industries
of Finland
1/3/2017
11. Value of New Orders in the Electronics and
Electrotechnical Industry in Finland
12
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest information July-September 2016
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
Combined
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: III,2016 / III,2015 III,2016 / II,2016
Export: +15 % +2 %
Domestic: +45 % +17 %
Combined: +20 % +5 %
Technology Industries
of Finland
1/3/2017
12. Value of Order Books in the Electronics and
Electrotechnical Industry in Finland
13
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest information 30.9.2016
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.9.2016 / 30.9.2015 30.9.2016 / 30.6.2016
Export: +14 % +1 %
Domestic: +48 % +16 %
Combined: +20 % +4 %
Combined
Technology Industries
of Finland
1/3/2017
13. Value of New Orders in the Mechanical
Engineering in Finland
14
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest information 30.9.2016
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
Combined
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: III,2016 / III,2015 III,2016 / II,2016
Export: -30 % +2 %
Domestic: +16 % -13 %
Combined: -23 % -2 %
Technology Industries
of Finland
1/3/2017
14. Value of Order Books in the Mechanical
Engineering in Finland
15
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest information 30.9.2016
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.9.2016 / 30.9.2015 30.9.2016 / 30.6.2016
Export: -5 % +1 %
Domestic: -11 % -11 %
Combined: -6 % -2 %
Combined
Technology Industries
of Finland
1/3/2017
15. Value of New Orders in the Consulting Engineering
in Finland
16
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest information July-September
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: III,2016 / III,2015 III,2016 / II,2016
Export: +341 % +221 %
Domestic +13 % -15 %
Combined: +41 % +6 %
Technology Industries
of Finland
1/3/2017
16. Value of Order Books in the Consulting
Engineering in Finland
17
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
comnpanies, latest information 30.9.2016.
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
Export
Domestic
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.9.2016 / 30.9.2015 30.9.2016 / 30.6.2016
Export: +54 % +59 %
Domestic: +8 % -1 %
Combined: +15 % +8 %
Combined
Technology Industries
of Finland
1/3/2017
17. Value of New Orders in the Information
Technology in Finland
18
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest information July-September 2016
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: III,2016 / III,2015 III,2016 / II,2016
Combined: -22 % -5 %
Technology Industries
of Finland
1/3/2017
18. Value of Order Books in the Information
Technology* in Finland
19
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest information 30.9.2016
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million euros, at current prices
Change: 30.9.2016 / 30.9.2015 30.9.2016 / 30.6.2016
Combined: -6 % -1 %
*) Excluding game industry companies
Technology Industries
of Finland
1/3/2017
19. Technology Industry Personnel in Finland and
Abroad
20Source: Statistics Finland, The Federation of Finnish Technology
Industries’ labour force survey
150,000
170,000
190,000
210,000
230,000
250,000
270,000
290,000
310,000
330,000
350,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(30.9)
Personnel in Finland Personnel in subsidiaries abroad
Some 12,000 of personnel
affected by temporary or
part-time lay-offs
30.9.2016
Technology Industries
of Finland
1/3/2017
20. Technology Industry Personnel in Finland by
Branch
211/3/2017 Technology Industries of Finland
(30.9)
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond
21. Technology Industry Personnel in Subsidiaries
Abroad by Branch
221/3/2017 Source: The Federation of Finnish Technology Industries’ labour force surveyTechnology Industries
of Finland
22. Retirement of Technology Industry Personnel in
Finland
23
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
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
1/3/2017
23. Retirement of Technology Industry Blue Collar
Employees in Finland
24
0
500
1000
1500
2000
2500
3000
3500
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
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
1/3/2017
24. Overview of the Situation in the Technology
Industry and Outlook for winter 2016/2017
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 July-September 2016 was 6 %
lower than in the corresponding period in 2015, but slightly higher than in the
preceding quarter.
- At the end of September, the value of order books was slightly lower year-on-year,
but at the same level reported at the end of June.
- The turnover of technology industry companies is expected to remain at the same
level in the winter of 2016/2017 than in the corresponding period year earlier.
- Since 2008, personnel numbers in Finland have shrunk by 43,000 employees,
totalling on average 283,000 at the end of September 2016.
1/3/2017
l
Technology Industries of Finland
25. World Economic Outlook
- Finland as a Part of Global
Economy
261/3/2017 Technology Industries of Finland
26. GDP Has Grown in Europe and the USA, but only
Slightly in Finland
271/3/2017 Lähde: MacrobondTechnology Industries
of Finland
27. 281/3/2017 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
28. 291/3/2017 Latest information December 2016
Source: Markit
GDP Growth Has Continued in Eurozone in
November-December 2016
Purchase Managers’ Index (PMI), 50 = no change from previous month
Technology Industries
of Finland
31. Industrial Production is Growing in Emerging
Countries
321/3/2017 Source: Macrobond, The CPB Netherlands Bureau for Economic Policy AnalysisTechnology Industries
of Finland
32. 331/3/2017 Latest information November 2016
Source: Markit
Industrial Production in China is Increasing
Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries
of Finland
33. 341/3/2017 Latest information December 2016
Source: Markit
Industrial Production in Russia is Growing
Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries
of Finland
34. 351/3/2017 Latest information November 2016
Source: Markit
Industrial Production in Brazil is Dropping
Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries
of Finland
35. 36Source: Macrobond
Industrial Production in USA is Slightly Increasing
Purchase Managers’ Index (PMI) in manufacturing industry
50 = no change from previous month
Technology Industries
of Finland
1/3/2017
36. 37Source: Macrobond
Growth of Residence Construction Has Lowered in
China
Share of China in Asian GDP is 42% (adjusted for PP)
Technology Industries
of Finland
1/3/2017
37. 38Souce: Macrobond
Fixed Investments in Russia and Brazil are Falling
Share 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
1/3/2017
38. 39Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis
Global Trade is Developing Sluggish
Import volume development
Technology Industries
of Finland
1/3/2017
39. Import to China Has Reduced from Several
Countries
40Source: MacrobondTechnology Industries
of Finland
1/3/2017
40. Exports from EU Countries to Russia Have Fallen,
but Stabilized
41Source: MacrobondTechnology Industries
of Finland
1/3/2017
41. Russia’s Share* of Technology Industry Exports
from Finland Has Lowered to Some Five Per Cent
42*) Soviet Union up to 1991
Source: Finnish Customs
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
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(1-9)
Technology Industries
of Finland
1/3/2017
42. 43Lähde: IMF (July 2016)
Global Economy is Was Expected to Grow by 3.1
% in 2016
GDP growth in 2016, %
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
9
0 10 20 30 40 50 60 70 80 90 100
North America
Western Europe
Japan
China
India
Restof
EasternEurope
Russia
Brazil
Mexico
Restof
LatinAmerica
MiddleEast
andAfrica
Average 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
1/3/2017
43. 44Source: IMF (July 2016), Board of Customs
Export Demand for Technology Industry in Finland
Grew by 2.0 % in 2016
GDP growth 2016 / 2015, %
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
9
0 10 20 30 40 50 60 70 80 90 100
North America
Western Europe Japan
China
India
Rest
of Asia
Restof
EasternEurope
Russia
Brazil
RestofLatinAmerica
MiddleEastandAfrica
Average growth:
+2.0 %
Mexico
The width of the bar indicates the export share of technology industry from Finland in 2015, %
Technology Industries
of Finland
1/3/2017
45. Technology-, Forest- and Chemical Industry Cover
81 % of Finnish Export Revenues
Goods 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 industry
39.06 billion €
51%
Forest industry
11.96 billion €
16%
Chemical industry
10.92 billion €
14%
Other branches
14.639 billion €
19%
Technology industry Forest industry Chemical industry Other branches
Technology Industries
of Finland
1/3/2017
47. Finnish Exports Lagging Behind Competitors
48Source: Macrobond, EurostatTechnology Industries
of Finland
1/3/2017
48. Finland’s Industrial Production and Exports Will
Not Regain the Level of 2008 with the Present
Production Capacity
Finland’s production capacity has decreased by 20 %
49
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
70
75
80
85
90
95
100
105
110
115
120
125
Industrial
production ability
(production with
capacity in full
use), left. Scale
Industrial
production
(2008=100), left
scale
Capacity utilization
rate, %, right scale
-21 %
2008 2009 2010 2011 2012 2013 2014 2015 2016
-21 %
Source: Statistics Finland / National Accounts, Industrial volume indexTechnology Industries
of Finland
1/3/2017
49. 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
1/3/2017
50. Upswing of Investments Recuired in Finland of
Investments Required in Finland
511/3/2017 Source: OECD, Economic Outlook
85
90
95
100
105
110
115
120
125
130
135
140
145
150
155
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e 2016e 2017e
Corporate sector fixed investments, index 2005=100
Sweden
the Netherlands
USA
Germany
Switzerland
Finland
Technology Industries
of Finland
51. 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
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e
Manufacturing industry Technology industry, including information technology and consulting engineering
Million euros, at current prices
Technology Industries
of Finland
1/3/2017
52. 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 services
Value added = labour costs + rents + depreciations + profits
Source: Statistics Finland / National Accounts
Technology Industries
of Finland
1/3/2017
53. 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 II/2016. Source: European Central Bank
Cost Competitiveness in Finland is Still 17 % Waker
than in Other Euro Countries Compared to 2005
Unit labour costs in the whole economy = labour costs / productivity, including the influence of effective
exchange rates
90
95
100
105
110
115
120
125
Finland compared to the Eurozone, actual change
The Competitiveness Pact + moderate wage increases in the coming years
Government'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
1/3/2017 Technology Industries
of Finland
54. 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
1/3/2017
55. Long-Term Outlook and Challenges
56
• Global Structural Change Set to Continue Apace
o Industrial production and services will relocate to rapidly developing economic areas
o 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 Change
o 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
1/3/2017