Business Opportunities in Industry in Northern Norway by Export Finland.

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)
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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)
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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)
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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)
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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)
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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 )
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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)
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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)
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10. Contact information
Finpro Norway, Finland Trade Center
Antti Mäkikyrö
Head of Trade Center
+358 29 4695 380
antti.makikyro@finpro.fi
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11. Thank You!
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