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

the European Sting Milestones

Featured Stings

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

Bram in Colombia

ECB indicates south Europeans can endure more austerity

Stronger European Border and Coast Guard to secure EU’s borders

Greece: Tsipras’ referendum victory does not solve the financial stalemate of the country and its banks

The Parliament rejects cultivating the wrong seeds of the Commission

2nd Global Consultation on Migrant Health 21-23 February 2017 in Sri Lanka

2021-2027 EU Budget: €378,1 billion to benefit all regions

Indonesia: Psychological impact on earthquake survivors turns villages into ‘ghost towns’

The Tears of lovely Memories

Migrants: ‘A powerful driver’ of economic growth, ‘dynamism and understanding’

How wealthy people transmit this advantage to their children and grand children

G20 LIVE: “Our response needs to be robust…otherwise we will only find the fire we are trying to put out”, UN Secretary General Ban Ki-moon just lit up G20 in Antalya Turkey

‘Unconscionable’ to kill aid workers, civilians: UN Emergency Coordinator

Commission supports normalisation in Greece through activation of post-programme framework

From UN Assembly podium, Central African Republic leader appeals for lifting arms embargo

The refugee crisis brings to light EU’s most horrible flaws and nightmares

EU: Huge surplus in the trade of services with the rest of the world

Macron’s Presidency: what the young generation’s expectations are

Parliament backs a modernised EU electoral law

EU Visa Policy: Commission welcomes agreement to strengthen EU visa rules

Good grub: why we might be eating insects soon

How to stay in shape and step up support for refugees

IMAGINATION, FACTS AND OPPORTUNITIES – THE UNLIMITED POWER OF CHINA

Everyone has ‘a moral imperative’ to uphold the rights of persons with disabilities, says UN chief

Starbucks and FIAT again under Commission’s microscope: is Europe ready to kick multinationals out of the house?

Roxane in Cambodia

The US + Britain trivialize mainland Europe, NATO and the EU

Nearly four million North Koreans in urgent need, as food production slumps by almost 10 per cent

CO2 can be a valuable raw material, not just a climate killer. Here’s how

In Chad, top UN officials say humanitarian response must go ‘hand in hand’ with longer-term recovery

These are the best cities for tech

Teenage girl’s death sentence spotlights Sudan’s failure to tackle forced marriage, gender-based violence – UN rights office

Yemen war: UN-backed talks to silence the guns due to begin in Stockholm

New Zealand will have a new ‘well-being budget,’ says Jacinda Ardern

The Commission neglects the services sector and favours industry

AI can wreak havoc if left unchecked by humans

8000 young people in the EP in Strasbourg: “a breath of fresh air for EU democracy”

These countries are home to the highest proportion of refugees in the world

Guinea-Bissau needs ‘genuinely free and fair elections’ to break cycle of instability

EU: Centralised economic governance and bank supervision may lead to new crisis

EU and Amazon cut deal to end antitrust investigation over e-books deals

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

Ten UN peacekeepers killed in a terrorist attack in northern Mali

Afghanistan: UN envoy urges further extension of ceasefire with Taliban, as Eid ul-Fitr gets underway

Food for millions in Yemen at risk of rotting in key Red Sea port, warns UN

UN experts cite ‘possible exploitation’ of workers hired to clean up toxic Japanese nuclear plant

New phenomena in the EU labour market

The EU Commission fails to draw the right conclusions about corruption

Intel @ European Business Summit 2014: Better decisions now, the new business dashboard 

UN chief appeals for calm as Mali presidential election draws to a close

‘No country, no region’ can tackle global challenges alone says UN’s Mohammed

The EU Commission vies to screen Chinese investment in Europe

The European Parliament hemicycle in Strasbourg (Copyright: European Union, 2017 / Source: EC - Audiovisual Service / Photo: Mauro Bottaro)

EU Parliament sends controversial copyright law reform back to discussion

How energy infrastructure is shaping geopolitics in East Asia

How smart tech helps cities fight terrorism and crime

Ηealth’s foundation is falling apart: what can we do about it?

With 10 million Yemenis ‘one step away from famine’, donors pledge $2.6 billion

US must abide by humanitarian refugee accords: UN refugee agency

France pushes UK to stay and Germany to pay

World Health Organisation and medical students: is there any room for improvement?

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