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Industry in northern norway
1.
Business Opportunities in
Industry in Northern Norway Finpro Norway Antti Mäkikyrö, Saara Annola
2.
Introduction (1) -
Business opportunities in Northern Norway • In recent years, the northern Norwegian economy has grown faster than the rest of the country - a development that is expected to continue in the coming years. Norway's future welfare depends on growth in the north. – The government’s national budget includes investments of NOK 3,15 billion in the northern Norway for 2015. The focus areas will be: international cooperation, business, education, Infrastructure and the environment, and security. – Unemployment will remain low and the continued growth means that the region needs more expertise. • It is estimated that there will be total investments of NOK 300 billion in Northern Norway during 2014-2022. From these investments, there will be: – Private investments: NOK 211 billion – Public investments: NOK 89 billion • At the moment, the situation in Northern Norway is: – Ongoing investments: NOK 32 billion – Financed investments: NOK 57 billion – Planned investments: NOK 210 billion (Sources: The Norwegian Labour and Welfare Administration (NAV), www.kbnn.no, Government’s National budget 2015) 4/28/2015 © Finpro2
3.
Introduction (2) -
Business Opportunities in Northern Norway • In Northern Norway, the estimated investments of almost NOK 300 billion are divided by following sectors (during 2014-2022): – Housing Construction (NOK 100,715 billion) – Offshore (NOK 65,418 billion) – Infrastructure (NOK 38,953 billion) – Energy (NOK 36,547 billion) – Public Construction (NOK 21,328 billion) – Food & Nourishment (NOK 13,613 billion) – Health (NOK 13,461 billion) – Manufacturing (NOK 5,147 billion) – Maritime infrastructure (NOK 4,171 billion) – Seafood industry (NOK 2,337 billion) (Source: www.kbnn.no) 4/28/2015 © Finpro 3
4.
Introduction (3) - Business
opportunities in Northern Norway • Estimated investments during the years 2014-2022 in Northern Norway by areas: – East-Finnmark: NOK 17,4 billion – West-Finnmark: NOK 37,5 billion – Tromsø, Mid-Troms, North-Troms: NOK 72,8 billion – Hålogaland region: NOK 33,4 billion – Bodø region: NOK 45,0 billion – Helgeland: NOK 27,5 billion – In addition, NOK 60,0 billion in offshore (continental shelf) (Source: www.kbnn.no) 4/28/2015 © Finpro 4
5.
Industry – Market
Demand (1) • The overall production index covering extraction, mining, manufacturing and electricity supply increased by 4.4 per cent from August to October 2014 compared with the previous three-month period. (Source: Statistics Norway) • Figure: Industrial production development. Seasonally adjusted. Three-month moving average. (2005=100) (Source: Statistics Norway, http://www.ssb.no/en/energi-og-industri/statistikker/pii) 4/28/2015 © Finpro5
6.
Industry - Market Demand
(2) • In manufacturing industry, there has been a stronger growth in Norway than in the euro area between September 2013-2014 – Production in Norwegian manufacturing went up by 2.1 per cent from September 2013 to September 2014. The growth is due to especially an output increase in machinery and equipment industry and repair and installation of machinery. – In comparison, the production in the manufacturing industries in the euro area went up by 1.2 per cent in this period. (Sources: Statistics Norway 2014, Eurostat) • Figure: Index of production for manufacturing. Euro area and Norway (2010=100). (Source: Statistics Norway, http://www.ssb.no/en/energi-og-industri/statistikker/pii) 4/28/2015 © Finpro6
7.
Industry - Market Demand
(3) • Figure: Estimates of contribution by industry for rate of change in investments in manufacturing 2014/2015 (Source: Statistics Norway, http://www.ssb.no/en/energi-og- industri/statistikker/kis ) 4/28/2015 © Finpro7
8.
Industry - Market Demand
(4) • Total investments in 2014 have been higher than in 2013. It is estimated, that there will be further growth in total investments for 2015. – In 2014, total investments covering manufacturing, mining & quarrying and electricity supply amount to NOK 43.5 billion measured in current value which is 5 percent higher than in 2013. • An increase in investments within transmission and distribution of electricity, together with higher figures for manufacturing explains this development. – Total investments in 2015 are expected to be 7 per cent higher than in 2014. • A further growth in transmission and distribution of electricity together with upward adjusted estimates for manufacturing explains this rise. • Supplier industry has an increasingly important position in Norwegian economy, and it represents 1/3 of the employment in manufacturing. (Sources: Statistics Norway, www.kbnn.no) 4/28/2015 © Finpro 8
9.
Industry - Market Demand
(4) • In Northern Norway, it is estimated that there will be investments of NOK 5,147 billion in Manufacturing during 2014-2022. For example: –Fauske/Sørfold: NOK 0,35 billion (Elkem) –Sortland: NOK 0,16 billion (Vesterålens AS) –Mo i Rana: NOK 0,35 billion (Rana Gruber), NOK 0,25 billion (Wasco Coating) –Kirkenes/Sør-Varanger: NOK 2,3 billion (Sydvaranger Gruve) (Source: www.kbnn.no) 4/28/2015 © Finpro9
10.
Contact information Finpro Norway,
Finland Trade Center Antti Mäkikyrö Head of Trade Center +358 29 4695 380 antti.makikyro@finpro.fi 4/28/2015 © Finpro10
11.
Thank You! 4/28/201 5 © Finpro11
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