2. Overcoming the Gap in GDP Will Require 3.0%
Growth in Finland Annually in 2019-2023
2*) The IMF forecast for the euro area in January 2019: 1.6 in 2019, 1.7 in 2020, 1.5% in 2021, 1.5 % in 2022 and 1.4 % in
2023.
Source: Macrobond, IMF, Federation of Finnish Technology Industry
6/10/2019 Technology Industries
of Finland
3. The Finnish Technology Industry Is Comprised of
Five Sub-Sectors
36/10/2019 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…
4. The Finnish Technology Industry Is Comprised of
Five Sub-Sectors
4
ELEKTRONICS AND ELECTROTECHNICAL
INDUSTRY
• Data communications equipment, electrical
machinery, medical technology
• Turnover (2018): 15.3 billion euros
• Personnel (2018): 38,600
METALS INDUSTRY
• Steel products, non-ferrous metals,
castings, metallic minerals
• Turnover (2018): 10.8 billion euros
• Personnel (2018): 16,400
MECHANICAL ENGINEERING
• Machinery, metal products, vehicles
• Turnover (2018): 31.7 billion euros
• Personnel (2018): 133,000
INFORMATION TECHNOLOGY
• IT services, applications and
programming
• Turnover (2018): 13.0 billion euros
• Personnel (2018): 68,900
CONSULTING ENGINEERING
• Expertise for construction industry and
infrastructure
• Turnover (2018): 6.3 billion euros
• Personnel (2018): 54,300
6/10/2019 Technology Industries
of Finland
5. The Technology Industry –
the Largest Export Sector in Finland 2018
5
• Over 50 % of total exports.
• 320,000 employed directly in the sector,
including indirect effects 660,000 people.
• Effect on value added totaling € 57 billion,
or 28% of GDP value added.
• Bring to Finland € 18 billion tax revenue
annually.
• Investments about EUR 5.0 billion
annually in Finland.
• 70 % of private-sector R&D investment.
6/10/2019 Technology Industries
of Finland
6. Value Added to the Economy Generated by the
Technology Industry Is EUR 55 Billion, or over 28%
of GDP * (2017)
610.6.2019 Teknologiateollisuus
28.8, 53%
15.6, 29%
10.1, 18%
A total of EUR 54.5 billion
Impact on technology industry
(direct influence)
Impact on other industries
(indirect influence)
Impact on private consumption
(income effect)
*) GDP value added was EUR 193.3 billion in 2017.
Source: Economic Impact of the Technology Industry in Finland 11/2018
7. Technology Industry Generates nearly 650,000
Jobs in Finland (over 25% of All Employees) (2017)
710.6.2019 Teknologiateollisuus
304,600, 47%
225,800, 35%
114,600, 18%
A total of 644 900 employees
Impact on technology industry
(direct influence)
Impact on other industries
(indirect influence)
Impact on private consumption
(income effect)
10 jobs in the technology industry bring
11 jobs to the rest of the economy
Source: Economic Impact of the Technology Industry in Finland 11/2018
8. Every Job in the Technology Industry Generates
almost another Job in the Services (2017)
810.6.2019 Teknologiateollisuus
295,100, 87%
12,200, 3%
33,100, 10%
Impact on other industries and on
private consumption: 340,300 employees
Services*
Primary production
Processing*
*) Excl. the services industries in the technology industry.
Source: Economic Impact of the Technology Industry in Finland 11/2018
9. Technology Industry Generates over 18 Billion
Euros in Tax Revenue Annually in Finland (2017)
910.6.2019 Teknologiateollisuus
9.2, 50%
4.3, 24%
4.7, 26%
A total of EUR 18.2 billion
Impact on technology industry
(direct influence)
Impact on other industries
(indirect influence)
Impact on private consumption
(income effect)
Source: Economic Impact of the Technology Industry in Finland 11/2018
10. Turnover of the Technology Industry in Finland
10Source: Macrobond, Statistics Finland, Technology Industries of Finland6/10/2019 Technology Industries
of Finland
11. 11*) In addition to goods exports the sector exported services worth some 13 billion euros.
Source: National Board of Customs, Statistics Finland
Export of Technology Industry Goods from Finland
by Area in 2018
Total goods exports 32.5 billion euros*
North America
3.04 billion €
9.4 %
Western Europe
17.51 billion €
53.9 %
South and
Middle America
0.89 billion €
2.7 %
Central and Eastern Europe
5.06 billion €
15.5 %
Africa
0.48 billion €
1.5 %
Middle and
Central East
0.48 billion €
1.5 %
Asia
5.04 billion €
15.5 %
6/10/2019 Technology Industries
of Finland
12. Technology, Forest and Chemical Industries
Provide 81 % of Finland's Goods and Services
Exports Revenue
Goods and service exports: billion euros and the share of Finnish exports in 2017
12*) Service exports industry-specific data for the year 2017 are preliminary information.
Source: Board of Customs, Statistics Finland (National Accounts, Foreign trade in services), Federation of Finnish Technology Industries
6/10/2019 Technology Industries
of Finland
Technology industry,
43.6, 51%
Forest industry;
12.9; 15%
Chemical industry;
13; 15%
Other branches;
16.1; 19%
13. Turnover of the Industry and Technology Industry
in Finland
13Source: Macrobond, Statistics Finland6/10/2019 Technology Industries
of Finland
14. Turnover of the Technology Industry in Finland
14Source: Macrobond, Statistics Finland6/10/2019 Technology Industries
of Finland
15. Value of New Orders in the Technology Industry*
in Finland
15Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation January-March 2019
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
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: I,2019 / I,2018 I,2019 / IV,2018
Export: +20 % -1 %
Domestic: -2 % +3 %
Combined: +14 % 0 %
*) Excl. metals
industry, game
industry and data
center companies
Technology Industries
of Finland
6/10/2019
16. Value of Order Books in the Technology Industry*
in Finland
16Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 31th March 2019.
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
28,000
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: 31.3.2019 / 31.3.2018 31.3.2019 / 31.12.2018
Export: +17 % +7 %
Domestic: +3 % +5 %
Combined: +14 % +6 %
*) Excl. metals
industry, game
industry and data
center companies
Combined
Technology Industries
of Finland
6/10/2019
17. Tender Requests* Received by the Technology
Industry Companies in Finland
17Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, the last questionnaire in
April 2019.
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Balance figure
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
*) ”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.”
Technology Industries
of Finland
6/10/2019
18. Value of New Orders in the Electronics and
Electrotechnical Industry in Finland
18
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
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Million euros, at current prices
Change: IV,2018 / IV,2017 IV,2018 / III,2018
Export: +16 % +12 %
Domestic: -13 % 0 %
Combined: +9 % +10 %
6/10/2019 Technology Industries
of Finland
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation October-December 2018
19. Value of New Orders in the Electronics and
Electrotechnical Industry in Finland
19
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
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: I,2019 / I,2018 I,2019 / IV,2018
Export: +18 % +4 %
Domestic: +3 % -8 %
Combined: +15 % +1 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation January-March 2019
Technology Industries
of Finland
6/10/2019
20. Value of Order Books in the Electronics and
Electrotechnical Industry in Finland
20
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
Million euros, at current prices
Change: 31.3.2019 / 31.3.2018 31.3.2019 / 31.12.2018
Export: +12 % +3 %
Domestic: +8 % -4 %
Combined: +12 % +2 %
Combined
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 31th March 2019.
Technology Industries
of Finland
6/10/2019
21. Value of New Orders in the Mechanical
Engineering in Finland
21
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
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: I,2019 / I,2018 I,2019 / IV,2018
Export: +23 % -4 %
Domestic: +1 % +6 %
Combined: +18 % -3 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation January-March 2019
Technology Industries
of Finland
6/10/2019
22. Value of Order Books in the Mechanical
Engineering in Finland
22
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Export
Domestic
Million euros, at current prices
Change: 31.3.2019 / 31.3.2018 31.3.2019 / 31.12.2018
Export: +18 % +8 %
Domestic: +3 % +9 %
Combined: +16 % +8 %
Combined
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 31th March 2019.
Technology Industries
of Finland
6/10/2019
23. Value of New Orders in the Consulting Engineering
in Finland
23
0
50
100
150
200
250
300
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: I,2019 / I,2018 I,2019 / IV,2018
Export: -1 % -4 %
Domestic: +4 % +7 %
Combined: +3 % +6 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 31th March 2019.
Technology Industries
of Finland
6/10/2019
24. Value of Order Books in the Consulting
Engineering in Finland
24
0
100
200
300
400
500
600
700
800
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: 31.3.2019 / 31.3.2018 31.3.2019 / 31.12.2018
Export: -17 % -4 %
Domestic: +14 % +6 %
Combined: +9 % +5 %
Combined
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 31th March 2019.
Technology Industries
of Finland
6/10/2019
25. Value of New Orders in the Information
Technology* in Finland
25
0
100
200
300
400
500
600
700
800
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: I,2019 / I,2018 I,2019 / IV,2018
Combined: -11 % +15 %
*) Excl. game industry and data center
companies
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 31th March 2019.
Technology Industries
of Finland
6/10/2019
26. Value of Order Books in the Information
Technology* in Finland
26
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: 31.3.2019 / 31.3.2018 31.3.2019 / 31.12.2018
Combined: -1 % +6 %
*) Excl. game industry and data
center companies
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 31th March 2019.
Technology Industries
of Finland
6/10/2019
27. Technology Industry Personnel in Finland and
Abroad
276/10/2019 Technology Industries of
Finland
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond
March 31
28. Technology Industry Personnel Recruitment in
Finland by Quarters
28Source: The Federation of Finnish Technology Industries’ labour force survey
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2014Q3 2015Q1 2015Q3 2016Q1 2016Q3 2017Q1 2017Q3 2018Q1 2018Q3 2019Q1
Change in the number of personnel compared to the previous quarter Number of people recruited during the quarter
Technology Industries
of Finland
6/10/2019
29. Technology Industry Personnel in Finland by
Branch
296/10/2019 Technology Industries of
Finland
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond
March 31
30. Technology Industry Personnel in Subsidiaries
Abroad by Branch
306/10/2019 Technology Industries of
Finland
Source: The Federation of Finnish Technology Industries’ labour force survey, Macrobond
31. Technology Industry Personnel in Subsidiaries
Abroad by Country
316/10/2019 Technology Industries of
Finland
Source: The Federation of Finnish Technology Industries’ labour force survey
Information from year 2018
China, 49,386, 17%
India, 35,658, 13%
USA, 28,939, 10%
Germany, 20,676, 7%
Sweden, 15,124, 5%
Poland, 14,906, 5%
France, 11,525, 4%
UK, 7,565, 3%
Brazil, 6,750, 2%
Russia, 6,425, 2%
Italy, 5,956, 2%
Canada, 4,676, 2%
Spain, 4,372, 2%
Other countries, 75,513, 26%
32. Retirement of Technology Industry Personnel in
Finland
32
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
6/10/2019
33. Retirement of Technology Industry Blue Collar
Employees in Finland
33
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
6/10/2019
34. Overview of the Situation in the Technology
Industry and Outlook for the Spring 2019
34
- Turnover in Finland totalled some EUR 77 billion in 2018. The turnover was up 6 % year-on-year. In
2008, prior to the financial crises, the corresponding figure was EUR 86 billion.
- The monetary value of new orders reported between January-March 2019 was at the same level as
in the preceding quarter, but 14 higher than in the corresponding period in 2018.
- At the end of March, the value of order books was 6 % higher than at the end of December, and 14
% higher than in March 2018.
- The turnover of technology industry companies in the spring 2019 is expected to be higher than in
the corresponding period last year.
- The number of personnel employed by technology industry companies in Finland grew by over 3 per
cent in January-March from the 2018 average. The industry employed some 318,500 people, up
nearly 7,500 from 2018. In 2008, the industry employed a total of 326,000 people in Finland.
- The recruitment activities increased again in January-March. Companies recruited a total of 12,500
new employees.
6/10/2019 Technology Industries of Finland
35. World Economic Outlook
- Finland as a Part of Global
Economy
356/10/2019 Technology Industries of Finland
36. GDP Growth Forecasts for 2019 Have Been
Weakened in Recent Months
36Source: Consensus Economics
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2.2
2.4
2.6
2.8
3
3.2
2018,
Jan
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019,
Jan
Feb Mar Apr May
GDP consensus forecasts for 2019, %
Eastern Europe
Finland
Sweden
Russia
France
Germany
Italy
6/10/2019 Technology Industries
of Finland
Forecast period
37. GDP Is also Growing in Finland, but the Backlog
for the Other Euro Area Countries Is up to 6.5%
37Lähde: MacrobondTechnology Industries
of Finland
6/10/2019
38. Finnish Exports Backlog for the Other Euro Area
Countries is Some 35%
38Source: Macrobond, Eurostat6/10/2019 Technology Industries
of Finland
39. Finland’s Economic Growth Has recently been
Supported by Exports and Construction
39Source: Macrobond, Statistics FinlandTechnology Industries
of Finland
6/10/2019
40. Gross Domestic Product Has Grown Long in
Europe and the USA, Finland is Lagging Behind
40Souce: MacrobondTechnology Industries
of Finland
6/10/2019
41. 416/10/2019 Lähde: Macrobond
In China, Growth Is Slowing Down, Brazil and
Russia Are Experiencing a Weak Growth
Share of global GDP in China, India, Brazil and Russia is 31 % (adjusted for PP)
Technology Industries
of Finland
42. 426/10/2019 Latest information May 2019
Source: Markit
Economic Growth in the Euro Area Has Slowed
Down Rapidly
Purchase Managers’ Index (PMI), 50 = no change from previous month
Technology Industries
of Finland
43. New Orders in Manufacturing in the Euro Area Have
Declined, with Small Growth in Services
Purchase Managers’ Index (PMI), 50 = no change from previous month
43Latest information April 2019
Source: Markit
6/10/2019 Technology Industries
of Finland
44. Industrial Production Has also Grown in Finland,
but the Backlog to EU Average Is 15%
446/10/2019 Source: MacrobondTechnology Industries
of Finland
46. Finland’s Industrial Production Has Lagged Behind
the Competition Countries
46Source: Macrobond, The CPB Netherlands Bureau for Economic Policy AnalysisTechnology Industries
of Finland
6/10/2019
47. 476/10/2019 Latest information May 2019
Source: Markit
Industrial Production in China Is Mildly Increasing
Purchase Managers’ Index (PMI) in manufacturing industry in China
Technology Industries
of Finland
48. 486/10/2019 Latest information May 2019
Source: Markit
Industrial Production in Russia Is Not Growing
Purchase Managers’ Index (PMI) in manufacturing industry in Russia
Technology Industries
of Finland
49. 496/10/2019 Latest information May 2019
Source: Markit
Industrial Production in Brazil Is Not Growing
Purchase Managers’ Index (PMI) in manufacturing industry in Brazil
Technology Industries
of Finland
50. 50Source: Macrobond
Industrial Production Growth in the USA Is
Weakening
Purchase Managers’ Index (PMI) in manufacturing industry
50 = no change from previous month
Technology Industries
of Finland
6/10/2019
51. Political Uncertainty Destabilises Global Economic
Stability - Exchange Rates Are Changing a Lot
51Source: Macrobond6/10/2019 Technology Industries
of Finland
53. 53Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis
World Trade Is Going Down to Lower Level
Export volume
Technology Industries
of Finland
6/10/2019
54. Imports to China Have Decreased from Several
Countries
54Source: MacrobondTechnology Industries
of Finland
6/10/2019
55. EU Exports to Russia Have Recovered only Slightly
55Source: MacrobondTechnology Industries
of Finland
6/10/2019
56. Russia’s Share* of Technology Industry Exports
from Finland Has Lowered to Below 5 Per Cent
56*) 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
2017
2018
2019(1-3)
Technology Industries
of Finland
6/10/2019
%
57. 57Source: IMF (January 2019)
The World Economy Is Projected to Grow by 3.3%
in 2019
GDP growth 2019 / 2018, %
-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
RestofEasternEurope
Russia
Brazil
Mexico
RestofLatin
America
MiddleEast
andAfrica
Average growth:
+3,3 %
The width of the bar indicates the share of global GDP in 2018 (adjusted for purchasing power parity), %
Rest of
Asia
Technology Industries
of Finland
6/10/2019
58. 58Source: IMF (January 2019), Finnish Customs
Demand in the Finnish Technology Industry Export
Market is Expected to Grow by 2.5 % in 2019
GDP growth 2019 / 2018, %
-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
Eastern
Europe
Russia
Brazil
RestofLatinAmerica
MiddleEastandAfrica
Average growth:
+2,5 %
Mexico
The width of the bar indicates the export share of technology industry from Finland in 2018, %
Technology Industries
of Finland
6/10/2019
60. Finnish Exports Have Lagged Behind the
Competitor Countries
60Source: Macrobond, EurostatTechnology Industries
of Finland
6/10/2019
61. 61Source: Macrobond, Eurostat
The Additional Debt of the State and Municipalities
Has Stopped and the Overall Tax Rate Has Fallen
Technology Industries
of Finland
6/10/2019
62. Unlike the Competitor Countries, in Finland
Business Investment Is Still Below the Level in 2008
62Source: OECD, Economic Outlook (November 2018)
70
75
80
85
90
95
100
105
110
115
120
125
130
135
140
145
150
155
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2020e
Corporate investments, at fixed prices, index 2008=100
USA
Switzerland
Sweden
Belgium
Germany
Finland
6/10/2019 Technology Industries
of Finland
63. 63Source: Statistics Finland, (National Accounts), The Confederation of Finnish Industries* investment survey (January 2019)
Investments in the Manufacturing and Technology
Industry in Finland Do Not Promise Long-Term
Strong Growth
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
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e
Manufacturing industry (incl. technology industry)
Technology industry (incl. information technology and consulting engineering)
Production and R&D investments in Finland, million euros, at fixed 2017 prices
Technology Industries
of Finland
6/10/2019
64. Industrial Productive and R&D Investment in Finland
Have Not Yet Reached the 2007-2008 Levels
64*) Including software investments.
Source: Statistics Finland (National Accounts), Confederation of Finnish Industries’ Investment Survey January 2019
0
1
2
3
4
5
6
7
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e
Productive investment
R&D investment*
R&D investment (excl.
electronics industry)*
Billion euros, at fixed 2010 prices
6/10/2019 Technology Industries
of Finland
65. Total Industry Investment in Finland Are Below
the Consumption of Fixed Capital
65*) Including software investments.
Source: Statistics Finland (National Accounts), Confederation of Finnish Industries’ Investment Survey January 2019
0
1
2
3
4
5
6
7
8
9
10
11
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e
Productive and R&D
investment*
Consumption of Fixed
Capital
Billion euros, at fixed 2010 prices
6/10/2019 Technology Industries
of Finland
66. Industrial Productive Investment in Finland Have
Reached the Level of Consumption of Productive
Capital
66Source: Statistics Finland (National Accounts), Confederation of Finnish Industries’ Investment Survey January 2019
0
1
2
3
4
5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e
Productive investment
Consumption of
productive capital
Billion euros, at fixed 2010 prices
6/10/2019 Technology Industries
of Finland
67. Industrial Production Capital in Finland Has
Disappeared Significantly, Especially after 2008
67Source: Statistics Finland (National Accounts), Confederation of Finnish Industries’ Investment Survey January 2019
0
5
10
15
20
25
30
35
40
45
50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e
Cumulative consumption
of productive capital
Cumulative productive
investment
Billion euros, at fixed 2010 prices
6/10/2019 Technology Industries
of Finland
68. Industrial Fixed (Tangible) Investment Growth in
Finland Has Lagged behind that of Competitors
68Source: Eurostat (National Accounts), Confederation of Finnish Industries’ investment survey, January 2019
60
70
80
90
100
110
120
130
140
150
160
170
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e2019e
Hungary
Poland
Netherlands
Austria
Germany
Czech
Republic
Sweden
Belgium
Finland
Billion euros, at fixed 2010 prices, index 2005=100
6/10/2019 Technology Industries
of Finland
69. Investment Rate in Industrial Fixed Investments
Is at a Low Level in Finland
69Source: Eurostat (National Accounts), Confederation of Finnish Industries’ investment survey, January 2019
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e
Hungary
Poland
Netherlands
Austria
Germany
Czech
Republic
Sweden
Belgium
Finland
Tangible investments / value added, %
6/10/2019 Technology Industries
of Finland
70. Industrial Intangible Investments * in Finland
Have almost Halved since 2005
70*) Intangible investments include research and development and software investments etc.
Source: Eurostat (National Accounts), Confederation of Finnish Industries’ investment survey, January 2019
40
60
80
100
120
140
160
180
200
220
240
260
280
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e
Hungary
Poland
Netherlands
Austria
Germany
Czech Republic
Sweden
Belgium
Finland, excl.
electronics industry
Finland
Billion euros, at fixed 2010 prices,
index 2005=100
6/10/2019 Technology Industries
of Finland
71. Investment Rate of Industrial Intangible
Investments* Has Dropped Significantly in Finland
71*) Intangible investments include research and development and software investments.
Source: Eurostat (National Accounts), Confederation of Finnish Industries’ investment survey, January 2019
0
2
4
6
8
10
12
14
16
18
20
22
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e
Hungary
Poland
Netherlands
Austria
Germany
Czech Republic
Sweden
Belgium
Finland, excl.
electronics industry
Finland
Intangible investments / value added, %
6/10/2019 Technology Industries
of Finland
72. Investments and productivity* are Decisive for
Finland’s Success
726/10/2019 Technology Industries of
Finland
*) Productivity is measured as real value added per hours worked. When productivity grows
(the curve rises) value added grows more than hours worked.
Source: Statistics Finland
73. 73Latest information October-December 2018.
Source: Eurostat: Quarterly National Accounts
In Industrial Productivity Development, Finland
Has a Gap of 17% Compared to EU Average, 11%
Compared to Sweden and 9% to Germany
Value added in manufacturing industry at fixed prices / hours worked
80
85
90
95
100
105
110
115
120
125
130
EU countries
Sweden
Germany
Finland
2008=100
6/10/2019 Technology Industries
of Finland
74. 74Latest information October-December 2018.
Source: Eurostat: Quarterly National Accounts
In GDP Productivity Development, Finland Has a
Gap of 6% Compared to EU Average and Some 3%
to Sweden and Germany
GDP at fixed prices / hours worked
94
96
98
100
102
104
106
108
110
112
EU countries
Sweden
Germany
Finland
2008=100
6/10/2019 Technology Industries
of Finland
75. 75Lates information October-December 2018.
Source: Eurostat
Investment Rate of Companies Is Lower in Finland
than in Other Small European Countries
18
20
22
24
26
28
30
Sweden
Austria
Belgium
EU countries
Finland
Corporate fixed investment compared to value added, % (excl. financial sector)
6/10/2019 Technology Industries
of Finland
76. 76
Finland’s Price and Cost Competitiveness vis-à-vis
the Euro Countries Is still to be Improved
Unit labour costs in the whole economy = labour costs / productivity, including the influence of effective
exchange rates
94
96
98
100
102
104
106
108
110
112
114
2000=100
2005=100
2008=100
Finland’s price
and cost
competitiveness
declines
Finland’s price
and cost
competitiveness
improves
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
6/10/2019 Technology Industries
of Finland
*) 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 2018. Source: European Central Bank
78. The Federation’s Member Companies 2017
78
250–499 employees
68,763
39%
30,910
18%
26,576
15%
49,725
28%
1,439
92 %
86
5 %
38
2 % 24
1 %
Number of enterprises / 1 587 Number of personnel / 175 974
1–249 employees 500–999 employees
1000– employees
Technology Industries
of Finland
6/10/2019
79. The Federation’s SME Member Companies 2017
79
485
34%
483
33 %
277
19%
194
13%
Number of enterprises / 1 439 Number of personnel / 68 763
5,150
8%
15,456
22%
19,075
28%
29,082
42%
1–19 employees
20–49 employees
50–99 employees
100–249 employees
6/10/2019 Technology Industries
of Finland
80. Operating Profit in the Member Companies of
Technology Industries of Finland in 2017
Operating profit-% = operating result / turnover * 100 (before taxes and financial income
and expenses)
80Source: Statistics Finland
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
(Median: 4,8 %)
Good (26 %)
Satisfactory (23 %)
Weak (29 %)
Unprofitable
(22 %)
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of Finland
Companies in random order
81. Net Profit in the Member Companies of Technology
Industries of Finland in 2017
Net profit -% = net profit / turnover * 100 (after tax and financial income and expenses)
81
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
(Median: 3,9 %)
Unprofitable (23 %)
Good (21 %)
Satisfactory (23 %)
Weak (33 %)
Source: Statistics Finland6/10/2019 Technology Industries
of Finland
Companies in random order
82. Return on Assets in the Member Companies of
Technology Industries of Finland in 2017
Return on assets -% = (net income + financial expenses + taxes) / (capital invested in the
financial year) * 100
82
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
(Median: 12,3 %)
Good (43 %)
Satisfactory (13 %)
Mediocre (25 %)
Weak (19 %)
Companies in random order
Source: Statistics Finland6/10/2019 Technology Industries
of Finland
83. Equity Ratio in the Member Companies of
Technology Industries of Finland in 2017
Equity ratio -% = (total equity + total appropriations accrued) / adjusted balance sheet * 100
83
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
(Median: 41.0 %)
Good (52 %)
Satisfactory (24 %)
Weak (24 %)
Companies in random order
Source: Statistics Finland6/10/2019 Technology Industries
of Finland