High-technology manufacturing saves the EU industry

Signing ceremony of the Memorandum of Understanding to finance the key enabling technologies: Philippe de Fontaine, Vice-President of the European Investment Bank, Antonio Tajani, Vice-President of the EC in charge of Industry and Entrepreneurship and Johannes Hahn, Member of the EC in charge of Regional Policy (from left to right). (EC Audiovisual Services, 27/02/2013).

Signing ceremony of the Memorandum of Understanding to finance the key enabling technologies: Philippe de Fontaine, Vice-President of the European Investment Bank, Antonio Tajani, Vice-President of the EC in charge of Industry and Entrepreneurship and Johannes Hahn, Member of the EC in charge of Regional Policy (from left to right). (EC Audiovisual Services, 27/02/2013).

According to a study by Eurostat, the EU statistical service, high and medium technology industries saved the manufacturing sector from a much larger fall during the difficult crisis years from 2008 until 2010. Still, the industrial sector has not yet fully recovered and in January 2013 compared to December 2012, seasonally  adjusted overall industrial production fell by 0.4% in both the euro area and the EU27, according to estimates released by Eurostat. In January 2013 compared with January 2012, industrial production also decreased by 1.3% in the euro area and by 1.7% in the EU27.

High technology

The Eurostat study about high and medium-high technology industries, authored by Thomas Jaegers, Carmen Lipp-Lingua and Digna Amil, proves that this segment of the industrial sector was the power house of growth. The writers concluded that high-technology industries rose by 26 % since first quarter of 2005 while low-technology industries shrunk by 6 %. It is obvious that, if it was not for the high technology manufacturing, the European industrial sector would have suffered a much stronger blow from developing countries’ competitors.

In detail the fall in production during the crisis years in high-technology manufacturing was half as large as in total. Total industrial production dropped by almost 20 percentage points during the financial and economic crisis, between the first quarter of 2008 and the second quarter of 2009. Afterwards the overall production index rose until it regained, in 2011, the level of 2005. Since 2011 however industrial production has remained rather stable.

According to the three Eurostat authors, “the European production level of high-technology industries in the third quarter of 2012 was more than 21 percentage points higher than in 2005 and more than 12 percentage points higher than during the crisis. For medium-high-technology manufacturing and for medium-low-technology manufacturing the fall between the first quarter of 2008 and the second quarter of 2009 was stronger than for industry as a whole (31 percentage points and 26 percentage points respectively)”.

Recent developments

Concerning the more recent developments in the EU‘s industrial sector, a 13 March Eurostat Press release reveals that, “in January 2013 compared with December 2012, production of durable consumer goods fell by 1.4% in the euro area and by 0.4% in the EU27”. As for the investment goods sector the same source observes that production decreased by 1.2% in both zones during the same period. Intermediate goods produce rose by 0.1% in the euro area and fell by 0.1% in the EU27. In the non-durable consumer goods subsector, output “increased by 0.9% and 1.3% in Eurozone and EU27 respectively”. Eurostat also notes that among the Member States for which data are available, industrial production fell in nine and rose in nine. The largest decreases were registered in Finland (-4.1%), Luxembourg (-3.8%) and Latvia (-3.5%), and the highest increases in Lithuania (+4.4%), Denmark (+4.3%) and Portugal (+3.5%).

Returning to the high-technology manufacturing the Eurostat study concludes, that recovery “was driven by pharmaceuticals and air and spacecraft machinery. The decline in the production of high-technology businesses between the second quarter of 2008 and the first quarter of 2009 was mainly due to a fall in the production of computers, electronic and optical products”.

It is obvious that competition from developing countries is the key factor for European manufacturing growth. In the fields of electronics and computers, where international competition is strong European manufacturing appears very vulnerable.  The opposite is true for pharmaceuticals and air and spacecraft machinery, where competition from developing countries is minimal.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Strengthen inclusion, participation of people with autism to ‘achieve their full potential’ says UN chief

Microsoft says the internet is getting a little nicer

EU food watchdog: more transparency, better risk prevention

More state aid to big firms, no special provisions for the SMEs

UN experts report: Business ‘dragging its feet’ on human rights worldwide

Global ageing is a challenge – and an opportunity

EFSF/ESM boss tells half truths about Troika’s doings

Nearly two-thirds of children lack access to welfare safety net, risking ‘vicious cycle of poverty’

New rules for temporary border controls within the Schengen area

How ducks are helping Bangladeshi farmers cope with cyclones

We must build resilience to face the future – but will we be fast enough?

Anti-vaccers: does the empty can rattle the most?

Eurogroup asked to reduce public debts of its member states

MEPs want robust EU cyber defence and closer ties with NATO

Harnessing the power of nature in the fight against climate change

World ‘not yet on track’ to ensure children a better future: UN rights chief

The sun’s impact on Earth and weather celebrated, as planet marks World Meteorological Day

Indonesian tsunami death toll climbs over 400 as Government-led relief efforts are stepped up

Better Regulation principles: at the heart of the EU’s decision-making process

UN investigates systematic sexual violence across South Sudan

Climate change is speeding up. Our response needs to be even faster

Horse meat runs faster than authorities…

Nigeria: Top UN officials say more support needed to ease humanitarian crisis and rebuild lives in conflict-ravaged north-east

Radioactive nuclear waste is a global threat. These scientists may have a new solution

Blockchain can change the face of renewable energy in Africa. Here’s how

The financial future of Eurozone on the agenda of Friday’s ECOFIN council

Why the 33,000 staff European Commission did not have a real contingency plan for the refugee crisis?

EU Commission spends billions without achieving targets

Youth for Climate Change

COP21 Breaking News_05 December: Ban Ki-Moon Closing Address at COP21 Action Day Innovation, Imagination, Faster Climate Action

Eurozone: New data show recession and debt closer to explosion

First Western Sahara talks at UN in six years, begin in Geneva

A Europe that Protects: Commission calls for continued action to eradicate trafficking in human beings

Presidents of pan-European youth organisations call upon the European Council to preserve the Schengen principles

Out with the old: Young People transforming Humanitarian Action

Security Council hails ‘historic and significant’ joint peace declaration by Ethiopia and Eritrea

Environment Committee MEPs push for cleaner trucks and electric buses

7 key challenges for the future of ASEAN – and how to solve them

WHO and IFMSA as transcendent pillars for world improvement

“A divided Europe is not in China’s interests”, Ambassador Zhang of the Chinese Mission to EU welcomes Brussels

“Leaked” TTIP document breaks post 8th negotiations round silence and opens door to critics

Britain’s May won the first round on the Brexit agreement with the EU

Commission makes it easier for citizens to access health data securely across borders

Tsipras bewildered with Berlin’s humiliating demands; ECB expects political sign to refinance the Greek banks

More than 750 million people around the world would migrate if they could

Fighting cybercrime – what happens to the law when the law cannot be enforced?

The inhumane face of crisis mirrored in numbers

Long live Eurozone’s bank supervisor down with the EU budget supremo

‘Critical test’ for North Korea’s Government as civilian suffering remains rife, warns UN rights expert

Following the World Cup? Then you’re watching high-performing migrants at work

How telehealth can get healthcare to more people

The secret weapon in the fight for sustainability? The humble barcode

Cyclone Idai: emergency getting ‘bigger by the hour’, warns UN food agency

European Youth Forum and youngest MEPs call on President Juncker to keep his promise to Europe’s youth

Falsified medicines: new rules to enhance patients’ safety

UK’s Cameron takes the field to speed up TTIP talks. Will “rocket boosters” work?

Trailing the US-EU economic confrontation

Logo Mania: A call to action to our crisis of connection

Banks, insurance giants are free again to abuse the real economy

Who will win the AI race? If countries work together, then the answer could be all of us

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s