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Technology Industry / Finnish Economic Outlook August 2018

Learn about the Technology Industry of Finland's five sub-sectors, its contribution to exports and GDP, and the outlook for future growth.

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Technology Industry / Finnish Economic Outlook August 2018

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  1. Technology Industry /Finnish Economic OutlookAugust 2018 Technology Industries of Finland

  2. Overcoming the Gap in GDP Will Require 3.0% Growth in Finland Annually in 2018-2023 *) The IMF forecast for the euro area in April 2018: 2.4% in 2018, 2.0% in 2019, 1.7% in 2020, 1.5% in 2021, 1.5% in 2022, 1.4% in 2023 Source: Macrobond, IMF, Federation of Finnish Technology Industry Teknologiateollisuus

  3. The Finnish Technology Industry Is Comprised of Five Sub-Sectors MECHANICAL ENGINEERING Abloy, Cargotec, Finn-Power, Fiskars, Glaston, Kone, Konecranes, Metso, Meyer Turku, Normet, Oras, Patria, Pemamek, Ponsse, Stala, Valmet, Valtra, Wärtsilä… METALS INDUSTRY Boliden, Componenta, Kuusakoski, Luvata, Outokumpu, Outotec, Ovako, Sacotec, SSAB … ELEKTRONICS AND ELECTROTECHNICAL INDUSTRY ABB, Ensto, Microsoft Mobile, MurataElectronics, Nokia, Planmeca, Polar Electro, Suunto, Vacon, Vaisala… 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… Technology Industries of Finland

  4. The Finnish Technology Industry Is Comprised of Five Sub-Sectors • MECHANICAL ENGINEERING • Machinery, metal products, vehicles • Turnover (2017): 29.9 billioneuros • Personnel (2017): 127,900 • METALS INDUSTRY • Steel products, non-ferrousmetals, castings, metallicminerals • Turnover (2017): 10.1 billioneuros • Personnel (2017): 16,100 • ELEKTRONICS AND ELECTROTECHNICAL • INDUSTRY • Data communicationsequipment, electricalmachinery, medicaltechnology • Turnover (2017): 14.4 billioneuros • Personnel (2017): 37,800 • INFORMATION TECHNOLOGY • IT services, applications and programming • Turnover (2017): 12.3 billioneuros • Personnel (2017): 66,900 • CONSULTING ENGINEERING • Expertise for constructionindustry and infrastructure • Turnover (2017): 6.0 billioneuros • Personnel (2017): 50,900 Technology Industries of Finland

  5. The Technology Industry – the Largest Export Sector in Finland 51 % of total Finnish exports. CompaniesinvestaboutEUR 5.0 billionannually in Finland. 70 % of private-sector R&D investment. Some 310,000employeddirectly in thesector. Technology Industries of Finland hasover1,600membercompanies. Technology Industries of Finland

  6. Turnover of the Technology Industry in Finland Source: Macrobond, Statistics Finland, Technology Industries of Finland Technology Industries of Finland

  7. *) In addition to goodsexportsthesectorexportedservicesworth some 13 billioneuros. Source: National Board of Customs, Statistics Finland Export of Technology Industry Goodsfrom Finland by Area in 2017 Total goodsexports 30.6 billioneuros* Central and Eastern Europe 5.11 billion € 16.6 % Western Europe 16.44 billion € 53.7 % North America 2.79 billion € 9.1 % Asia 4.51 billion € 14.7 % Middle and Central East 0.51 billion € 1.7 % South and Middle America 0.84 billion € 2.8 % Africa 0.43 billion € 1.4 % Technology Industries of Finland

  8. Technology, Forest and Chemical Industries Provide 81 % of Finland's Goods and Services Exports Revenue Goods and serviceexports: billioneuros and theshare of Finnish exports in 2017 *) Service exportsindustry-specific data for theyear 2017 arepreliminaryinformation. Source: Board of Customs, Statistics Finland (National Accounts, Foreigntrade in services), Federation of Finnish Technology Industries Technology Industries of Finland

  9. Turnover of the Industry and Technology Industry in Finland Source: Macrobond, Statistics Finland Technology Industries of Finland

  10. Turnover of the Technology Industry in Finland Source: Macrobond, Statistics Finland Technology Industries of Finland

  11. Value of New Orders in the Technology Industry* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationApril-June 2018. Millioneuros, at currentprices *) Excl. metalsindustry, gameindustry and data center companies Technology Industries of Finland

  12. Value of Order Books in the Technology Industry* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 30.6.2018. Millioneuros, at currentprices Combined *) Excl. metalsindustry, gameindustry and data center companies Technology Industries of Finland

  13. TenderRequests* Receivedby Technology Industry Companies in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, the last questionnaire in July 2018 *) Haveyouexperienced a notableincreaseordecrease in thenumber of requests for tenders in recentweeks in comparison to thesituationthreemonthsago?”. Balancefigure = thenumber of companiesreceivingmorerequests - thenumber of companiesreceivinglessrequests. Technology Industries of Finland

  14. Tender Requests* Receivedby Technology Industry AnticipateWeaker Order Development in Autumn *) Fourquartersmovingaverage. Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies Technology Industries of Finland

  15. Value of New Orders in theElectronics and Electrotechnical Industry in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationApril-June 2018. Millioneuros, at currentprices

  16. Value of Order Books in theElectronics and Electrotechnical Industry in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 30.6.2018. Millioneuros, at currentprices Combined Technology Industries of Finland

  17. Value of New Orders in theMechanical Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationApril-June 2018. Millioneuros, at currentprices Technology Industries of Finland

  18. Value of Order Books in theMechanical Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 30.6.2018. Millioneuros, at currentprices Combined Technology Industries of Finland

  19. Value of New Orders in the Consulting Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationApril-June 2018. Millioneuros, at currentprices Technology Industries of Finland

  20. Value of Order Books in the Consulting Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 30.6.2018. Millioneuros, at currentprices Combined Technology Industries of Finland

  21. Value of New Orders in theInformation Technology* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationApril-June 2018. Millioneuros, at currentprices *) Excl. gameindustry and data center companies. Technology Industries of Finland

  22. Value of Order Books in theInformation Technology* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 30.6.2018. Millioneuros, at currentprices *) Excl. gameindustry and data center companies. Technology Industries of Finland

  23. Technology Industry Personnel in Finland Has Grown by 10,000 this Year Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour forcesurvey Technology Industries of Finland

  24. Technology Industry Personnel in Finland by Branch Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond (Jun 30) Technology Industries of Finland

  25. Technology Industry Personnel in Subsidiaries Abroad by Branch Source: The Federation of Finnish Technology Industries’ labour force survey, Macrobond Technology Industries of Finland

  26. Retirement of Technology Industry Personnel in Finland Source: Wageinquiry of theTechonologyIndustries of Finland, Finnish Centre for Pensions, Statistics Finland Individuals per year Salariedemployees Bluecollaremployees Technology Industries of Finland

  27. Retirement of Technology Industry BlueCollarEmployees in Finland Source: Wageinquiry of theTechonologyIndustries of Finland, Finnish Centre for Pensions, Statistics Finland Individuals per year Technology Industries of Finland

  28. Overview of theSituation in the Technology Industry and Outlook for theAutumn of 2018 - Turnover in Finland totalled some EUR 72.7 billion in 2017. Turnoverwas 7 % higherthan in 2016. In 2008, prior to thefinancialcrises, thecorrespondingfigurewas EUR 86 billion. - The monetaryvalue of newordersreportedbetweenApril-June 2018 wasslightlylowerthan in January-March, and 9 % lowerthan in thecorrespondingperiod in 2017. - At theend of June, thevalue of orderbookswas 3 % lowerthan at theend of March, but 12 % higherthan in June 2017. - The turnover of technologyindustrycompaniesduringtheautumn of 2018 is expected to beslightlyhigherthan in thecorrespondingperiodlastyear. - The number of personnel in Finland increased during January-June 2018. Personnel increased by a good of three per cent, or by 10,000 employees from the average number in 2017. On average, the industry employed 310,000 people. In 2008, the industry employed a total of 326,000 people in Finland. - The recruitmentactivitiespickedupmarkedly in 2017 and early 2018. The companiesrecruited a total of 26,000 newemployeesduringJanuary-June, in 2017 a total of 42,500 employees. Technology Industries of Finland

  29. World Economic Outlook - Finland as a Part of Global Economy Technology Industries of Finland

  30. GDP also Grows in Finland, but the Backlog for the Other Euro Area Countries Is up to 8% Lähde: Macrobond Technology Industries of Finland

  31. Finland’s Exports Jumped in Early 2017, but the Backlog for the Other Euro Area Countries is 40 % Source: Macrobond, Eurostat Teknologiateollisuus

  32. Recently, Finland's Economic Growth Has also Been Supported by an Increase in Exports Source: Macrobond, Statistics Finland Technology Industries of Finland

  33. Gross Domestic Product Has Grown Long in Europe and the USA, Finland is Lagging Behind Souce: Macrobond Technology Industries of Finland

  34. Lähde: Macrobond In China and India Growth Continues, also Brazil Is Now Growing Share of global GDP in China, India, Brazil and Russia is 31 % (adjusted for PP) Technology Industries of Finland

  35. LatestinformationJuly 2018 Source: Markit Economic Growth in the Euro Area Is Slowing DownPurchaseManagers’ Index (PMI), 50 = no changefrompreviousmonth Technology Industries of Finland

  36. Industrial Production Has also Grown in Finland, but the Backlog to Other EU Countries Is 15% Source: Macrobond Technology Industries of Finland

  37. Industrial Production Volume in the EU Countries Source: Macrobond Technology Industries of Finland

  38. Finland’s Industrial Production Has Lagged Behind the Competition Countries Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis Technology Industries of Finland

  39. LatestinformationJuly 2018 Source: Markit Industrial Production in China is GrowingSlightlyPurchaseManagers’ Index (PMI) in manufacturingindustry in China Technology Industries of Finland

  40. LatestinformationJuly 2018 Source: Markit Industrial Production in Russia Is Decreasing Technology Industries of Finland

  41. LatestinformationJuly 2018 Source: Markit Industrial Production in Brazil RemainsUnchangedPurchaseManagers’ Index (PMI) in manufacturingindustry in Brazil Technology Industries of Finland

  42. Source: Macrobond Industrial Production in the USA is GrowingPurchaseManagers’ Index (PMI) in manufacturingindustry 50 = no changefrompreviousmonth Technology Industries of Finland

  43. Souce: Macrobond Fixed Investments Have also Grown in Brazil Technology Industries of Finland

  44. Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis Strongest Growth in World Trade Is already Behind Exportvolume Technology Industries of Finland

  45. Imports to China Have Increased from Several Countries Source: Macrobond Technology Industries of Finland

  46. EU Exports to Russia Have Recovered only Slightly Source: Macrobond Technology Industries of Finland

  47. Russia’sShare* of Technology Industry Exports from Finland HasLowered to Some 5 Per Cent *) Soviet Union up to 1991 Source: Finnish Customs % Technology Industries of Finland

  48. Source: IMF (July 2018) The World Economy Is Projected to Grow by 3.9% in 2018 GDP growth in 2018 / 2017, % India China Rest of Eastern Europe Averagegrowth: +3,9 % • Middle East • and Africa Rest of Latin America Rest of Asia Mexico Brazil North America Russia Western Europe Japan The width of thebarindicatestheshare of global GDP in 2017 (adjusted for purchasingpowerparity), % Technology Industries of Finland

  49. Source: IMF (July 2018), FinnishCustoms Demand in theFinnish Technology Industry Export Market is Expected to Growby 2.8 % in 2018 GDP growth in 2018 / 2017, % India Mexico Rest of Latin America China Middle East and Africa Averagegrowth: +2,8 % Rest of Eastern Europe Rest of Asia Brazil Western Europe North America Japan Russia The width of thebarindicatestheexportshare of technologyindustryfrom Finland in 2016, % Technology Industries of Finland

  50. Finland’s Economic Growth Relies on Exports and Investments Technology Industries of Finland

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