Finnish technology industry, November 2019

Technology Industry /
Finnish Economic Outlook
November 2019
111/8/2019 Technology Industries
of Finland

The Finnish Technology Industry Is Comprised of
Five Sub-Sectors
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…

The Finnish Technology Industry Is Comprised of
Five Sub-Sectors
3
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
• Personnel (2018): 16,400
MECHANICAL ENGINEERING
• Machinery, metal products, vehicles
• Personnel (2018): 133,000
INFORMATION TECHNOLOGY
• IT services, applications and
programming
• Personnel (2018): 68,900
CONSULTING ENGINEERING
• Expertise for construction industry and
infrastructure
• Personnel (2018): 54,300
of Finland

The Technology Industry –
the Largest Export Sector in Finland 2018
4
• Over 50 % of total exports.
• Over 320,000 employed directly in the
sector, including indirect effects 675,000
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.
of Finland

Value Added to the Economy Generated by the
Technology Industry Is EUR 55 Billion, or over 28%
of GDP * (2017)
58.11.2019 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

Technology Industry Generates nearly 650,000
Jobs in Finland (over 25% of All Employees) (2017)
304,600, 47%
225,800, 35%
114,600, 18%
A total of 644 900 employees
(direct influence)
(income effect)
10 jobs in the technology industry bring
11 jobs to the rest of the economy

Every Job in the Technology Industry Generates
almost another Job in the Services (2017)
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.

Technology Industry Generates over 18 Billion
Euros in Tax Revenue Annually in Finland (2017)
9.2, 50%
4.3, 24%
4.7, 26%
A total of EUR 18.2 billion
(direct influence)
(income effect)

Turnover of the Technology Industry in Finland
9Source: Macrobond, Statistics Finland, Technology Industries of Finland11/8/2019 Technology Industries
of Finland

10*) 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 %
of Finland

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
11*) 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
of Finland
Technology industry,
43.6, 51%
Forest industry;
12.9; 15%
Chemical industry;
13; 15%
Other branches;
16.1; 19%

Turnover of the Industry and Technology Industry
in Finland
12Source: Macrobond, Statistics Finland11/8/2019 Technology Industries
of Finland

Turnover of the Technology Industry in Finland
13Source: Macrobond, Statistics Finland11/8/2019 Technology Industries
of Finland

Value of New Orders in the Technology Industry*
in Finland
14Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation July-September 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
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Million euros, at current prices
Change: III,2019 / III,2018 III,2019 / II,2019
Export: +11 % +10 %
Domestic: +39 % +5 %
Combined: +16 % +8 %
*) Excl. metals
industry, game
industry and data
center companies
Technology Industries
of Finland
11/8/2019

Value of Order Books in the Technology Industry*
in Finland
15Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
companies, latest observation 30th September 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
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Change: 30.9.2019 / 30.9.2018 30.9.2019 / 30.6.2019
Export: +8 % 0 %
Domestic: +19 % +7 %
Combined: +10 % +1 %
*) Excl. metals
industry, game
industry and data
center companies
Combined
of Finland
11/8/2019

Tender Requests* Received by the Technology
Industry Companies in Finland
16Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies, the last questionnaire in
October 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.”
of Finland
11/8/2019

Value of New Orders in the Electronics and
Electrotechnical Industry in Finland
17
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
Export: +46 % +25 %
Domestic: -3 % -7 %
Combined: +36 % +19 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent
of Finland
11/8/2019

Value of Order Books 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
8,000
8,500
Export
Domestic
Change: 30.9.2019 / 30.9.2018 30.9.2019 / 30.6.2019
Export: +33 % +20 %
Domestic: +2 % -4 %
Combined: +27 % +15 %
Combined
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
of Finland
11/8/2019

Value of New Orders in the Mechanical
Engineering 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
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Export: -19 % -7 %
Domestic: +128 % +50 %
Combined: +1 % +5 %
of Finland
11/8/2019

Value of Order Books in the Mechanical
20
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Export
Domestic
Change: 30.9.2019 / 30.9.2018 30.9.2019 / 30.6.2019
Export: +1 % -6 %
Domestic: +45 % +23 %
Combined: +6 % -2 %
Combined
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
of Finland
11/8/2019

Value of New Orders in the Consulting Engineering
in Finland
21
0
50
100
150
200
250
Combined
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Export: -32 % -22 %
Domestic: +9 % -10 %
Combined: +3 % -11 %
companies, latest observation July-September 2019.
of Finland
11/8/2019

Value of Order Books in the Consulting
22
0
100
200
300
400
500
600
700
Export
Domestic
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Change: 30.9.2019 / 30.9.2018 30.9.2019 / 30.6.2019
Export: -40 % -17 %
Domestic: -7 % -1 %
Combined: -11 % -3 %
Combined
of Finland
11/8/2019

Value of New Orders in the Information
Technology* in Finland
23
0
100
200
300
400
500
600
700
800
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Combined: 0 % -37 %
*) Excl. game industry and data center
companies
companies, latest observation July-September 2019.
of Finland
11/8/2019

Value of Order Books in the Information
Technology* in Finland
24
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
Change: 30.9.2019 / 30.9.2018 30.9.2019 / 30.6.2019
Combined: +9 % -3 %
*) Excl. game industry and data
center companies
of Finland
11/8/2019

Technology Industry Personnel
2511/8/2019 Technology Industries of
Finland
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond
Some 2 900 of employees
affected by temporary or
part-time lay-offs
30.9.2019
Sep 30

Technology Industry Personnel Recruitment in
Finland by Quarters
26Source: 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 2019Q3
Change in the number of personnel compared to the previous quarter Number of people recruited during the quarter
of Finland
11/8/2019

Technology Industry Personnel in Finland by
Branch
Finland
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond
Sep 30

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

Technology Industry Personnel in Subsidiaries
Abroad by Country
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%

Retirement of Technology Industry Personnel in
Finland
30
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
11/8/2019

Retirement of Technology Industry Blue Collar
Employees in Finland
31
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
11/8/2019

Overview of the Situation in the Technology
Industry and Outlook for the Autumn 2019
32
- Turnover in Finland totalled some EUR 79 billion in 2018. The turnover was up 6% year-on-year. In
January-July 2019, the turnover was up 7% over the year 2018.
- The monetary value of new orders reported between July-September 2019 was 8% higher than in
the preceding quarter, and 16 higher than in the corresponding period in 2018.
- At the end of September, the value of order books was slightly higher than at the end of June, but
10% higher than in September 2018.
- The turnover of technology industry companies at the end of 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 nearly 4
per cent in January-September from the 2018 average. The industry employed a good of 320,000
people, up some 11,600 from 2018.
- The recruitment activities stayed at a good level in July-September. During the period of January-
September the number of recruitments was over 33,000. SMEs accounted for two thirds of all
recruitments.
11/8/2019 Technology Industries of Finland

World Economic Outlook
- Finland as a Part of Global
Economy
3311/8/2019 Technology Industries of Finland

GDP Growth Forecasts for 2019 Have Been
Weakened in Recent Months
34Source: 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
GDP consensus forecasts for 2019, %
Eastern Europe
Finland
Sweden
Russia
France
Germany
Italy
of Finland
Forecast period

Finland’s GDP Backlog for the Other Euro Area
Countries Is Close to 5%
35Lähde: MacrobondTechnology Industries
of Finland
11/8/2019

Finland’s Export Backlog for the Other Euro Area
Countries Is Some 35%
36Source: Macrobond, Eurostat11/8/2019 Technology Industries
of Finland

Finland’s Economic Growth Has recently been
Supported by Exports and Construction
37Source: Macrobond, Statistics FinlandTechnology Industries
of Finland
11/8/2019

Gross Domestic Product Has Grown Long in
Europe and the USA, Finland is Lagging Behind
38Souce: MacrobondTechnology Industries
of Finland
11/8/2019

3911/8/2019 Lähde: Macrobond
In China, Growth Is Slowing Down, Brazil and
Russia Are Experiencing Weak Growth
Share of global GDP in China, India, Brazil and Russia is 31 % (adjusted for PP)
of Finland

4011/8/2019 Latest information October 2019
Source: Markit
Economic Growth in the Euro Area Is Weak
Purchase Managers’ Index (PMI), 50 = no change from previous month
of Finland

The Backlog of Industrial Production in Finland
Compared to EU Countries Is Closing
4111/8/2019 Source: MacrobondTechnology Industries
of Finland

Industrial Output Has Fallen the Longest in
Germany
4211/8/2019 Source: MacrobondTechnology Industries
of Finland

Industrial Production Is Now Stagnating
Worldwide
43Source: Macrobond, The CPB Netherlands Bureau for Economic Policy AnalysisTechnology Industries
of Finland
11/8/2019

Source: Markit
Industrial Production in China Is Increasing
Purchase Managers’ Index (PMI) in manufacturing industry in China
of Finland

Source: Markit
Industrial Production in Russia Is Decreasing
Purchase Managers’ Index (PMI) in manufacturing industry in Russia
of Finland

Source: Markit
Industrial Production in Brazil Is Growing
Purchase Managers’ Index (PMI) in manufacturing industry in Brazil
of Finland

47Source: Macrobond
Industrial Production in the USA Is Decreasing
Purchase Managers’ Index (PMI) in manufacturing industry
50 = no change from previous month
of Finland
11/8/2019

Political Uncertainty Destabilises Global Economic
Stability - Exchange Rates Are Changing a Lot
48Source: Macrobond11/8/2019 Technology Industries
of Finland

49Souce: Macrobond
Fixed Investment in Russia and Brazil Is Growing
Slightly
of Finland
11/8/2019

50Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis
World Trade Is Going Down to Lower Level
Export volume
of Finland
11/8/2019

Chinese Imports Have Shown a Slight Pick-up in
Recent Months
51Source: MacrobondTechnology Industries
of Finland
11/8/2019

EU Exports to Russia Have Recovered only Slightly
52Source: MacrobondTechnology Industries
of Finland
11/8/2019

Russia’s Share* of Technology Industry Exports
from Finland Has Lowered to 5-6%
53*) 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(1-6)
of Finland
11/8/2019
%

54Source: IMF (July 2019)
The World Economy Is Projected to Grow by 3.2%
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:
+3,2 %
The width of the bar indicates the share of global GDP in 2018 (adjusted for purchasing power parity), %
Rest of
Asia
of Finland
11/8/2019

55Source: IMF (July 2019), Finnish Customs
Demand in the Finnish Technology Industry Export
Market is Expected to Grow by 2.4 % 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:
+2,4 %
Mexico
The width of the bar indicates the export share of technology industry from Finland in 2018, %
of Finland
11/8/2019

Finland’s Economic Growth
Relies on Exports and
Investments
56Technology Industries
of Finland
11/8/2019

Finnish Exports Have Lagged Behind the
Competitor Countries
57Source: Macrobond, EurostatTechnology Industries
of Finland
11/8/2019

58Source: Macrobond, Eurostat
Government and Municipal Debt Is at a High Level
of Finland
11/8/2019

Unlike the Competitor Countries, in Finland
Business Investment Is Still Below the Level in 2008
59Source: OECD, Economic Outlook (May 2019)
70
75
80
85
90
95
100
105
110
115
120
125
130
135
140
145
150
155
160
165
170
175
180
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e2020e
Corporate investments, at fixed prices, index 2005=100
USA
Sweden
Switzerland
Belgium
Germany
Finland
of Finland

60Source: 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
of Finland
11/8/2019

Industrial Tangible and Intangible Investment* in
Finland Have Not Yet Reached the 2007-2008 Levels
61*) Including software investments.
Source: Statistics Finland (National Accounts), Confederation of Finnish Industries’ Investment Survey June 2019
0
1
2
3
4
5
6
7
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e
Tangible investment
Intangible investment*
Intangible investment (excl.
electronics industry)*
Billion euros, at fixed 2015 prices
of Finland

Total Industrial Investment in Finland Is Now at
Around the Level of Capital Consumption
62*) Including software investments.
Source: Statistics Finland (National Accounts), Confederation of Finnish Industries’ Investment Survey June 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 2018 2019e
Tangible and intangible
investment*
Consumption of Fixed
Capital
of Finland

Tangible Investments by Industry in Finland Are
Now Higher than the Consumption of Capital
63Source: Statistics Finland (National Accounts), Confederation of Finnish Industries’ Investment Survey June 2019
0
1
2
3
4
5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e
Tangible investment
Consumption of tangible
capital
of Finland

Industrial Production Capital in Finland Has
Disappeared Significantly, Especially after 2008
64Information on consumption of tangible capital is at 2010 prices.
Source: Statistics Finland (National Accounts)
0
5
10
15
20
25
30
35
40
45
50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Cumulative consumption
of tangible capital
Cumulative tangible
investment
of Finland

Industrial Tangible Investment Growth in Finland
Has Lagged behind that of Competitors
65Source: Eurostat (National Accounts), Confederation of Finnish Industries’ investment survey, June 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 2018 2019e
Hungary
Poland
Netherlands
Austria
Germany
Czech
Republic
Sweden
Belgium
Finland
Billion euros, at fixed 2015 prices, index 2005=100
of Finland

Investment Rate in Industrial Tangible
Investments Is at a Low Level in Finland
66Source: Eurostat (National Accounts)
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 2018
Hungary
Poland
Netherlands
Austria
Germany
Czech
Republic
Sweden
Belgium
Finland
Tangible investments / value added, %
of Finland

Industrial Intangible Investments * in Finland
Have almost Halved since 2005
67*) Intangible investments include research and development and software investments etc.
Source: Eurostat (National Accounts), Confederation of Finnish Industries’ investment survey, June 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 2018 2019e
Hungary
Poland
Netherlands
Austria
Germany
Czech Republic
Sweden
Belgium
Finland, excl.
electronics industry
Finland
Billion euros, at fixed 2015 prices,
index 2005=100
of Finland

Investment Rate of Industrial Intangible
Investments* Has Dropped Significantly in Finland
68*) Intangible investments include research and development and software investments.
Source: Eurostat (National Accounts)
0
2
4
6
8
10
12
14
16
18
20
22
24
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Hungary
Poland
Netherlands
Austria
Germany
Czech Republic
Sweden
Belgium
Finland, excl.
electronics industry
Finland
Intangible investments / value added, %
of Finland

Investments and productivity* are Decisive for
Finland’s Success
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

708.11.2019 Teknologiateollisuus Latest information April-June 019.
Source: Eurostat: Quarterly National Accounts
Finland’s GDP Productivity Has Lagged Behind Other
EU and Euro Countries
GDP at fixed prices / hours worked
98
100
102
104
106
108
110
112
114
EU countries
Euro countries
Finland
2005=100

718.11.2019 Teknologiateollisuus Latest information April-June 2019.
Source: Eurostat: Quarterly National Accounts
In Industrial Productivity, Finland Is Still a Bit
Behind the EU and Eurozone Average
Industrial value added at fixed prices / hours worked
90
95
100
105
110
115
120
125
130
135
140
EU countries
Euro countries
Finland
2005=100

72Lates information April-June 2019.
Source: Eurostat
The Investment Rate of Companies in Finland Is
Clearly Lower than the EU Average
18
20
22
24
26
28
30
Sweden
Austria
Belgium
EU countries
Finland
Corporate fixed investment compared to value added, % (excl. financial sector)
of Finland

73
Finland’s Cost Competitiveness Has Improved, but
Is Still About 4-5% Behind Other Euro Countries
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 19
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 April-June 2019. Source: European Central Bank

Member Companies of the
Federation of Finnish
of Finland

The Federation’s Member Companies 2018
75
250–499 employees
70,029
39%
29,629
16%
26,793
15%
53,249
30%
1,440
92 %
86
5 %
38
2 % 24
1 %
Number of enterprises / 1,588 Number of personnel / 179,700
1–249 employees 500–999 employees
1000– employees
of Finland
11/8/2019

The Federation’s SME Member Companies 2018
76
477
33%
483
33 %
285
20%
196
14%
Number of enterprises / 1,440 Number of personnel / 70,029
5,101
7%
15,705
23%
19,763
28%
29,460
42%
1–19 employees
20–49 employees
50–99 employees
100–249 employees
of Finland

Operating Profit in the Member Companies of
Technology Industries of Finland in 2018
Operating profit-% = operating result / turnover * 100 (before taxes and financial income
and expenses)
77Source: Statistics Finland
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
(Median: 5.0 %)
Good (26 %)
Satisfactory (24 %)
Weak (29 %)
Unprofitable
(21 %)
of Finland
Companies in random order

Net Profit in the Member Companies of Technology
Industries of Finland in 2018
Net profit -% = net profit / turnover * 100 (after tax and financial income and expenses)
78
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
(Median: 4.0 %)
Unprofitable (23 %)
Good (21 %)
Satisfactory (23 %)
Weak (33 %)
Source: Statistics Finland11/8/2019 Technology Industries
of Finland

Return on Assets in the Member Companies of
Return on assets -% = (net income + financial expenses + taxes) / (capital invested in the
financial year) * 100
79
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
(Median: 12.7 %)
Good (44 %)
Satisfactory (12 %)
Mediocre (26 %)
Weak (18 %)
of Finland

Equity Ratio in the Member Companies of
Equity ratio -% = (total equity + total appropriations accrued) / adjusted balance sheet * 100
80
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
(Median: 41.8 %)
Good (52 %)
Satisfactory (24 %)
Weak (24 %)
of Finland

Finnish technology industry, November 2019

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