Estonian business for US students - March 2014
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Estonian business for US students - March 2014

  • 1,162 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,162
On Slideshare
1,162
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
3
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • All free zones in Estonia are open to foreign direct investments.Goods in the free trade zone are considered as being outside the customs territory. Goods brought to the free zone for later re-export are not subject to VAT, excise nor customs duties. Also the Estonian speciality - no tax on reinvested profits - preserves in free trade zones.The free trade zones are established by the Estonian governemnt and the Estonian Tax and Customs Board is responsible for monitoring the movement of goods in the free trade zones.
  • All free zones in Estonia are open to foreign direct investments.Goods in the free trade zone are considered as being outside the customs territory. Goods brought to the free zone for later re-export are not subject to VAT, excise nor customs duties. Also the Estonian speciality - no tax on reinvested profits - preserves in free trade zones.The free trade zones are established by the Estonian governemnt and the Estonian Tax and Customs Board is responsible for monitoring the movement of goods in the free trade zones.
  • Foreign investors have played a very significant roll in Estonia since its independence in 1991. In fact according to the UN’s World Investment Report, at the end of 2008, Estonia had a total FDI stock of 11,906 USD per capita, which is the highest among the EU new members, ahead of the Czech Republic and Hungary. All of these international companies have invested in Estonia as a manufacturing hub to service regional and global markets.
  • In December 2009, Oxford Intelligence carried out a nationally and regionally representative survey of 4,000 adults of working age across Estonia. Full-time students, retired persons and those unable to work for health reasons were excluded from the survey. The results of the research provide a highly accurate and statistically robust assessment of workforce skills.The engineering workforce in Estonia was estimated at 98,300 at the end of 2009. This is equivalent to 14% of the total Estonian workforce as a whole and it shows the intensity and importance of engineering and manufacturing skills in the Estonian economy. Indeed, Estonia has a long tradition of manufacturing skills, going back before the Soviet Union era. There is also a lot of room for growth in terms of hiring engineers because, currently, only 52,000 or those 98,000 are actually working in a hands-on engineering role. Indeed, of the remaining 47,000, there an estimated 35,000 who would be very interested in taking an engineering job and around 18,000 are currently unemployed.
  • Founded in Tartu in 1990, we in Fontes are the most experienced human capital management consultants in Estonia. Every year FONTES produced an annual compensation and benefits survey which is considered to be the most comprehensive in the country. The data here provides just a few examples of median salaries for the Tallinn-Harju capital region for selected, relevant manufacturing and engineering job titles. More specific data is available on request.

Transcript

  • 1. ESTONIA AT A GLANCE. Estonian Investment Agency » investinestonia.com
  • 2. Area: 45,227 km2 (similar in size to Denmark or Netherlands) Population: 1.32 million (68% Estonians, 25% Russians), Capital Tallinn (401,000) Official language: Estonian (belongs to Fenno-Ugric language group, similar to Finnish language) Currency: EURO Member of: EU, NATO, WTO, OECD and the Schengen zone Country credit ratings: Fitch A+ S&P AA- Moody’s A1 Time Zone: GMT+2 Estonia is the heart of the Baltic Sea.
  • 3. Why make business with Estonia?  A unique location and culture combining Nordic roots and Eastern influencesA unique location and culture combining Nordic roots and Eastern influences. hy make business with Estonia?
  • 4. Business in Estonia  Estonia can offer a progressive business environment with an efficient and compatible infrastructure. Our e-services, mobile communications and internet applications are among the most progressive in the world. Estonians are adaptable towards new technologies, and use them willingly.  At the same time, our Nordic influence gives investors a transparent, clearly defined, sincere and honest partner who is considerate, rational and not very talkative. The Estonian approach is functional and one that creates timeless value. Our natural resources are powerful and accessible.  As an added value, rootedness is like a guarantee that Estonians do not give up and would rather break their arm than a promise they have given. Perseverance and culture are a good basis for long-term plans in any area of business.
  • 5. High position in business environment rankings 1 9 10 13 14 16 19 19 22 24 29 48 55 57 Index of economic freedom rankings 2013 Source: World Economic Forum Source: Wall Street Journal; The Heritage Foundation 1 3 4 5 6 10 32 42 46 48 52 Global competitiveness index 2013
  • 6. High e-readiness and low corruption Source: World Economic Forum Source: Transparency International 1 3 5 7 9 13 21 22 32 41 42 44 49 Networked readiness index rankings 2013 Estonia is second in the internet freedom in the world. According to Freedom House 1 3 3 12 14 18 19 28 38 43 47 49 Corruption perception index rankings 2013
  • 7. Politically and Economically Stable  Political stability. Estonia is seen as the most stable country in CEE – more stable than Czech Republic, Poland, Lithuania, Latvia, Romania or Hungary.  No 1 in Europe in lowest government debt. Government debt was 10.1% of GDP in 2012. A stable and future oriented state budget, with a growing interest in entrepreneurs and foreign investors.  Low inflation – 3,9% in 2012 9.05 8.77 8.5 6.49 6 5.92 5.64 5.24 4.37 4.12 0 1 2 3 4 5 6 7 8 9 10 Risk of political instability, global rank Source: IMD World Competitiveness Yearbook 2013 The higher the rank the lower the risk
  • 8. A highly progressive environment that offers an efficient way of doing business.
  • 9. Simple and favourable tax system  * 0% Corporate income tax on reinvested profits  All distributions are subject to income tax at the rate of 21% of the amount of taxable payment  Personal income tax: flat rate 21%. The same rate applies for expats  VAT: 20%  Social tax: 33% (20% for social security and 13% for health insurance)  Unemployment insurance: 3% of the gross salary. (The employer pays 1% of the salary and deduction from employees salary is 2%.)  no property tax  The land tax is from 0,1% to 2,5% on the assessed value of the land, rate established by local government (i.e in Tallinn 2,5%).  All the taxes can be declared via E-tax/e-customs (an electronic service desk of the Estonian Tax and Customs Board) Source: European Commission 0% * 15.0% 15.0% 19.0% 19.0% 19.0% 26.0% 26.0% 26.3% 30.2% 0.0% 10.0% 20.0% 30.0% 40.0% ESTONIA Latvia Lithuania Poland Czech Rep Hungary Finland UK Sweden Germany Tax rate on corporate income, 2013
  • 10. Use of ICT 98% 95% 95% 94% 93% 91% 90% 86% 85% 77% 0% 20% 40% 60% 80% 100% Finland Sweden Lithuania ESTONIA UK Czech Republic EU 27 Latvia Hungary Poland Enterprises with fixed broadband access, 2012 Source: Eurostat  100% of schools and government organisations have broadband connection  74% of homes have broadband connection (Statistics Estonia 2012)  98% of bank transfers are performed electronically  94% of income tax declarations are made via the e-Tax Board  1 192 029 active ID-Cards  Digital signature legislation 87% 85% 81% 74% 72% 68% 67% 68% 67% 61% 0% 20% 40% 60% 80% 100% Sweden Finland UK ESTONIA EU 27 Czech Republic Poland Hungary Latvia Lithuania Households with fixed broadband access, 2012
  • 11. Why make business with Estonia?  A highly progressive environment that offers an efficient way of doing business.  Highly developed infrastructure that supports business development.  Among the most successful countries in the world in attracting inward investment. Well developed infrastructure that supports business development.
  • 12. Strategic Location – 240 million market
  • 13. Estonia Distribution Hub Estonia has been a global trading post for 760 years. As the “centre of Europe” moves further north and east, Estonia is once again a key gateway between the East and West, North and South, linking Scandinavia, the Baltics, Russia, the CIS, Central Asia, China and the Far East. An impressive infrastructure – 5 key international ports, 4 free zones, 10 border posts to Russia, block trains to Moscow and Beijing, shortest EU flight time to China – still has plenty of capacity and scope for growth. Estonia, ranked 7th in the world for ease of trading across borders, is an ideal location for international, intermodal distribution and transit activities.
  • 14. Accessibility  Toll free roads, excellent capacity, 10 border inspection posts from Estonia to Russia  Electronic pre-arrival customs processing for the European Union and Russia border checkpoints  Excellent national and international rail network with particularly strong links to Russia including partnership with Russia’s major wagon owners Containers to Central Asia: regular train “Baltic Transit” operated since 2003  Regular container train service Tallinn – Minsk – Black Sea  Future: Southward extension, i.e. Turkey etc.  Land and sea bridge connecting to the Far East Land Sea Air  Port of Tallinn – the largest and deepest (18 m of depth) port of the Baltic Sea  Port of Sillamäe – the easternmost port of the European Union  EU tax exemption in the customs-free zones of the ports  All-year navigation without assistance of ice breakers  An ideal location for cargo shipment to neighbouring markets  2 international airports: Tallinn, Tartu  Most European capitals served directly within 3 hours  7.5hr flight to Beijing – shortest in the EU  Global connections via Copenhagen, Helsinki, London  Helsinki connection provides frequent services from Europe to Far Eastern cities in China, Japan and South Korea
  • 15. Location - Markets sizes and delivery times  Russia – 143.8 mln  to St.Petersburg – 24 hours (by train)  to Moscow – 24 hours (by train) 48 hours (by truck)  Finland – 5.2 mln  to Helsinki – 3 hours (by ship/truck)  Latvia & Lithuania – 6 mln  to Riga – 4 hours (by truck)  to Vilnius – 8 hours (by truck)  Belorussia – 10 mln  to Minsk – 24 hours (by train) 48 hours (by truck)  Ukraine – 46 mln  to Black Sea – 2 days (by truck) 5 days (by train)
  • 16. Industrial & Science Parks  SILPORT hinterland territory of 600 ha has the Free Zone status and is available for developing different terminals, distribution and manufacturing facilities.  SAIVTA is developing 6 industrial parks in Ida-Viru County in Eastern Estonia, a key development area.  Paldiski South Harbour Industrial Park - located 50 km west of Tallinn and it is the third largest harbour of the five harbours belonging to Port of Tallinn. A 21 ha industrial park area bordering on the harbour is developed.  Muuga Industrial Park is located in Muuga Harbour, near Tallinn, the largest and deepest cargo port in Estonia. The total area of the industrial park is 75 ha. Extensive network of quality sites for different user types at all stages of the development process
  • 17. Free Zone area – Transit Benefits  Free zone enables to set up distribution or manufacturing facilities  Free zone regime exempts from Value Added Tax (VAT) & customs duties, excise taxes on transit cargo  But preserves Estonian speciality – exemption from corporate income tax on retained earnings  There are 4 free zones in Estonia:  Port of Muuga  Port of Sillamäe  Paldiski Northern Port  Valga free zone
  • 18. Customs  EU common customs tariffs  The online tariff dataase – TARIC  Electronic customs board for tax administration  From 1 August 2011, the new procedure of border crossing works on the Estonian–Russian border and all motor vehicles are obliged to book a place in the electronic border queue in the Russian direction. Information and booking at the Internet addresses www.eestipiir.ee and www.estonianborder.eu  Estonian Tax and Customs Office: http://www.emta.ee/index.php?id=1939
  • 19. Cutting Edge ICT connectivity  By 2015 all Estonian households, enterprises and institutions will have access to the broadband network with the data connection speed of up to 100 Mbit/s  Fiber optical backbone network connects all Estonian county centers  The country is completely covered by digital networks providing wireless internet  A network of Public Access Points covers most cities and towns Fiber optical network in 2015 Fiber optical network today
  • 20. Estonia is part of the Nordic electricity market  Estonia is part of Nordic electricity market and Estonian electricity system is connected also with Russia and Latvia.  Estonian energy system is the only predominantly oil-shale-based energy production system in the world.  The biggest energy producer in Estonia is Eesti Energia, a 100% state-owned company.  The price of electricity consists of four components: electricity, network service, renewable energy support and excise duty.  Electricity market is 100% open starting January 2013.
  • 21. Natural gas market  Natural gas is imported into Estonia from Russia and from Latvia  Estonian natural gas company is Eesti Gaas  Network services to all participants of the natural gas market on the territory of Estonia are provided by EG Võrguteenus  The price of gas consists of three elements: gas, network service and excise duty  The price for industrial users is a matter of negotiations 8.51 8.97 9.36 9.82 9.94 10.88 12.04 12.4612.48 13.76 0 2 4 6 8 10 12 14 16 Gas price for industries, 2012 (EUR per GJ) Source: Eurostat
  • 22. Labour market and education system  Total labour force: 691,000  The unemployment rate: 10,2% in 2012  General working time: 8 hours a day, 5 days per week. The duration of one shift may not exceed 12 hours  Overtime is allowed by mutual agreement  The duration of the annual vacation: 28 days  10 Public holidays a year  The average wages in Estonia in 2012 was EUR 887. The monthly minimum wage for full-time work is EUR 320. Education system  7 universities (6 public, 1 private) - ca 49,400 students o University of Tartu – 17,200 students o Tallinn University of Technology – 13,900 students o Tallinn University – 10,300 students  22 other professional higher education institutions – ca 15,400 students  48 vocational schools - ca 26,200 students  214 gymnasiums (high schools) - ca 24,000 students
  • 23. Living in Estonia  Living cost lower that in Scandinavian countries, according to the www.xpatulator.com database, Tallinn is in 285th place out of 780 cities  Most health services covered by general medical insurance system - all persons insured with the Health Insurance Fund have a family practitioner  Education: pre-school care, obligation to attend school from the age of 7 – basic, secondary and higher education. 2 international schools in Tallinn  Social insurance in the EU: http://www.sm.ee/eng/for- you/employees/social-insurance-in-the-eu.html
  • 24. Why make business with Estonia?  A highly progressive environment that offers an efficient way of doing business.  Highly developed infrastructure that supports business development.  Among the most successful countries in the world in attracting inward investment. Among the most successful countries to attract foreign investments – all entrepreneurs are treated equally.
  • 25. Estonian foreign trade - commodities, (EUR bln) 0 2 4 6 8 10 12 14 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 10 months 4,7 6.2 7.7 8 8.5 6.5 8.8 12.1 12.5 10.3 6.7 8.2 10.7 11.4 10.9 7.6 9.2 12.6 13.8 11.5 Exports Imports Source: Statistics Estonia
  • 26. Sweden 15,9% Finland 14,5% Russia 12,1% Latvia 8,7% Lithuania 5,4% USA 4,7% Germany 4,5% Norway 3,4% Netherlands 2,5% Others 28,3% Commodities exports by country and commodity, 2012 Commodities exports represent 74% of Estonia’s GDP Source: Statistics Estonia Machinery and appliances 28,7% Mineral products 15% Base metals and articles of metals 8,3% Wood and articles of wood 7,4% Miscellaneous manufactured products 6,6% Chemical products 5,2% Transport equipment 5% Food products 4% Live animals, animal products 3,3% Plastics and rubber 3,1% Other 13,4%
  • 27. Finland 14,4% Germany 10,3% Sweden 10,2% Latvia 9,6% Lithuania 8,6% Russia 6,8% Poland 6,3% Netherlands 3,8% UK 3,8% China 3,5% Others 22,7% Commodities imports by country and commodity, 2012 Source: Statistics Estonia Machinery and appliances 28,4% Mineral products 15,5% Transport equipment 9,2% Chemical products 8,2% Base metals and articles of metals 7,7% Food products 5,6% Plastics and rubber 4,9% Textiles and textile articles 4% Wood and articles of wood 2,4% Vegetable products 2,1% Other 12%
  • 28. Estonian foreign trade - services, (EUR bln) 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 9 months 4,7 2.6 2.9 3.3 3.5 3.2 3.4 3.9 4.2 3.3 1.4 1.8 2 2.2 2.3 1.8 2.1 2.7 3 1.4 Exports Imports Source: Bank of Estonia
  • 29. Structure of FDI inflow, (EUR m) 822.2 770.8 2302.2 1431.9 1985.0 1181.8 1324.5 1206.8 244.9 1180.5 129.1 409.5 510.1 567.9 1000.1 1373 870.6 408.4 1013.9 989.9 972.4 280.9 -1000 -500 0 500 1000 1500 2000 2500 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H FDI inflow reinvested profits Source: Bank of Estonia Total stock: EUR 15 bln
  • 30. Structure of FDI outflow, (EUR m) 137.4 216.6 556 881.6 1275.6 760.2 1113.9 107.3 -1044.8 740.8 80.3 -1500 -1000 -500 0 500 1000 1500 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H FDI outflow reinvested profits Source: Bank of Estonia Total stock: EUR 4.6 bln
  • 31. FDI inflow by countries and activity, stock as of 30.06.2013 Sweden 27,1% Finland 23,0% Netherlands 9,9% Russia 4,9% Norway 4,6% Lithuania 3,0% Cypros 2,9% Denmark 2,5% Luxembourg 2,2% USA 2,2% Other 17,7% Financial and insurance activities 24,1% Manufacturing 15,9% Wholesale and retail trade 12,9% Real estate activities 8,9% Professional, scientific, technical activities 8,8% Transportation and storage 5,7% Agriculture, foresty and fishery 2,7% Information and communication 2,6% Other 18,4% Source: Bank of Estonia
  • 32. FDI outflow by countries and activity, stock as of 30.06.2013 Cyprus 30,9% Lithuania 19,0% Latvia 17,1% Ukraine 6,1% Russia 4,8% Netherlands 3,4% Finland 3,0% Others 15,7% Transportation and storage 28,9% Professional, scientific, technical activities 19,3% Financial and insurance activities 16,3% Real estate activities 12,4% Wholesale and retail trade 8,1% Manufacturing 4,2% Other 10,8% Source: Bank of Estonia
  • 33. Key sectors  ICT  Transport and logistics services  Business and financial services  Industrial machinery and metalworking  Electronics Industrial opportunities – Engineering and metalworking
  • 34. Competitive Advantage in Mechanical Engineering Products - opportunities as a near-shore manufacturing hub for both in- house and outsourced production, services and distribution - a dynamic, internationally focused mechanical engineering ecosystem, excellent accessibility, a sustainable, high-quality skills base and competitive, low-inflation costs.  1,250 companies are active in the machinery and metalworking sector, ca 18,200 direct employees  EUR 1.4 billion revenues, of which 67% is generated from exports  3 main branches  Metals and metal products – 64% of total revenues  Transport equipment – 22% of total revenues. 91% of transport equipment production is exported  Machinery, tools & equipment – 14% of total revenues
  • 35. Summary – Why Estonia? Competitive advantages in mechanical engineering products Strategic location – global vision  Baltic, Nordic and Western European connections  Proximity to Russia and other CEE markets  Exports represent more than 100% of Estonia’s GDP Dynamic engineering industry ecosystem  World class foreign investors supported by extensive local supply chains  Productivity increased by 48% in 5 years  Development and production of globally innovative products Quality talent pool– resourcing for business  98,000 engineers  50% of engineers studied specialized or vocational engineering courses R&D know how  High quality universities - Ranked 19th in the world for the quality of math and science education  Government support - Zero % tax on re-invested profits  Mechatronics Innovation Centre at Tehnopol Competitive costs & taxes – outstanding value  Labour costs are at least a third of those in Sweden or Finland  Prime land values €20/m², prime bulk industrial space rent €4/m²  Simple, flat rate tax system Progressive infrastructure  Sites – scalable and accessible  Ports – growth potential, open year round  100% fibre broadband by 2015 Easy to do business  Ranked by the IMD, World Bank and the World Economic Forum as the easiest place to do business in CEE  Ranked 7th in the world for ease of trading across borders Low risk  Lowest government debt in Europe (10.1% of GDP in 2012)  Sustainable workforce – 8% unemployment; latent engineering talent pool  Political & economic stability – joined the Euro in January 2011  Security – NATO chose Estonia for its cyber security operations
  • 36. Opportunities for Mechanical Engineering Companies  Metals & fabricated metal products  Tool-making  Machinery & equipment  Automotive components  Ship and boat building Key Specialisms Opportunities  Nordic and Baltic production & distribution hub  Contract manufacturing & engineering services  High-end welding  Precision tungsten carbide dies  Design & R&D services  Product development , piloting & testing  Ideal “small country” test market  Scalable development sites around major sea & land hubs
  • 37. Successes Stories OEMs using Estonia as an International Production & Distribution Hub
  • 38. 6. Quality Talent Pool – Engineering Workforce Of the total available Estonian engineering talent pool, around 47% are not currently working in a hands-on engineering role. These 46,700 skilled people represent an under-utilized and readily available recruitment base for foreign companies. The high prevalence of private sector employers is indicative of the breadth of skills available within engineering, gained through exposure to a greater variety of projects. Source: Oxford Intelligence Location Skills Audit© 2010 Status Adults with Engineering Skills TOTAL 98,300 Currently work in engineering role 51,600 Previously worked in an engineering role 46,700 Private Sector big company 24% Private Sector medium company 26% Private Sector small company 30% Government/ Government agency or other public sector 10% Education school 1% Education further or adult education 1% Self employed 8% Engineering Professional Workforce segmented by Organizational Type
  • 39. 6. Quality Talent Pool – Engineers: Qualified & Experienced Source: Oxford Intelligence Location Skills Audit© 2010 Rank Education Levels Workforce 1 Specialised Secondary 45,700 2 Master’s Degree 19,100 3 Bachelor’s Degree 8,700 4 Doctorate / PhD 900 Almost half of the engineering workforce has studied either a specialised or vocational engineering course, highlighting that government support for the sector is strong. Estonia is ensuring that its talent pool is being refreshed, to guarantee a plentiful supply of employees for the future. This continues to be balanced with experience, which will service corporate needs for middle management and more senior ranking positions. 0% 10% 20% 30% 40% 50% less than 2 years 2-5 years 5-10 years 10 years or more Experience working in a Technical Engineering Role
  • 40. 6. Quality Talent Pool – Engineers: Key Specialisms Source: Oxford Intelligence Location Skills Audit© 2010 Companies recruiting in Estonia can readily access a diverse range of engineering skills ability, supported by experience. Talent pools for more niche skills such as Thermal Power and Environmental engineering, are becoming more prevalent. Rank Engineering Skill Workforce 1 Electrical and Electronics 26,700 2 Mechanical 22,200 3 Industrial and Manufacturing 22,000
  • 41. 6. Quality Talent Pool - Number of students and graduates Name of faculty Name of the study programme 2011/2012 2012/2013 Social sciences, business & law Social and behavioural sciences 3,746 3,487 Journalism 1,161 1,067 Business Administration 16,427 15,637 Law 3,448 3,124 Technical sciences, production and construction Production and processing 3,751 3,748 Techical sciences 10,826 10,749 Architecture and construction 6,392 6,098 Name of faculty Name of the study programme 2010/2011 2011/2012 Social sciences, business & law Social and behavioural sciences 679 626 Journalism 234 210 Business Administration 3,870 2,284 Law 708 688 Technical sciences, production and construction Production and processing 881 1,002 Techical sciences 2,473 2,244 Architecture and construction 1,392 1,193 Number of students Number of graduates Source: Ministry of Education and Research World class talent: according to the World Economic Forum’s 2012- 2013 Global Competitiveness Index, Estonia was ranked 19th in the world for the quality of its math and science education. Universities & vocational colleges: student base = 91,000
  • 42. 8. Competitive Costs – Labour & Property Source: Financial Times, fDiBenchmark.com, autumn 2013 Approximately four to five times lower labour costs compared to Germany and Sweden in the manufacturing of machinery & equipment 0.83 0.94 1.10 1.21 1.46 2.84 3.79 4.92 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Latvia Lithuania Estonia Hungary Czech Republic UK Finland Sweden Total labour costs, MEUR/year Machine tools & equipment, 110 persons Benchmark locations  Head of Manufacturing – 1  Production Manager – 1  Quality Control Manager – 1  Facilities/Office Services Specialist – 2  Secretary – 3  Warehouse and Distribution Operative – 3  Quality Control Specialist – 3  Engineer – 7  Production Operative (Highly Skilled) – 9  Production Operative (Skilled) – 25  Production Operative (Unskilled) – 52 Competitive labour costs, with a Scandinavian-like culture
  • 43. 8. Competitive Costs & Taxes – Manufacturing Salaries Source: FONTES Estonia Compensation Survey 2013 http://www.fontes.ee/eng/fontes Role Monthly Annual Assembly line worker 630 7,500 Senior assembly line worker 700 8,900 Foreman 1,000 11,400 Mechanical engineer 1,200 13,300 Chief engineer 2,100 25,000 Plant manager 2,400 31,200 R&D/Product development director 3,000 38,000 Head of production 3,100 42,900 Median Salaries 2013 – Capital Region, gross EUR/month
  • 44. 8. Competitive Costs – Property Market Indicative range for rents (excluding VAT and operating expenses) in major towns of Estonia for class A and B1 office premises (EUR/m2 per month). Class A –property with professional property management company, located in Downtown (Südalinn), completely new construction, fully controllable technical systems, reasonable column spacing, raised floors and suspending ceilings, good underground parking ratio, corresponding infrastructure/amenities in the building (including cafeteria). Class B1 –reconstructed or newly constructed building with fully or partially replaced technical systems, located in City Centre (Kesklinn) or on the edge of the City Centre; possibility to install raised floors and suspending ceilings, western-standard interior fit-out, and surfaces parking. Type of space Tallinn Tartu Pärnu Narva Office 5.5 – 15.1 4.8 – 11.5 4.0 – 8.0 3.1 – 5.5 Industrial 2.8 - 5.0 2.0 - 4.0 1.6 - 4.4 1.9 - 3.8 Source: Colliers International 4.2 4.2 4.2 5.3 6 7.5 13.2 0 2 4 6 8 10 12 14 Tallinn Berlin Warsaw Stockholm Paris Helsinki London Industrial rents in 2012, bulk space (EUR/sqm/month)
  • 45. Estonian Investment Agency – free consultancy services to potential foreign investors www.investinestonia.com www.estonia.eu
  • 46. Thank you! Ele Merike Pärtel Estonian Investment Agency ele-merike.partel@eas.ee www.investinestonia.com