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Strategisk planläggning av verksamhetsmark är en av flera viktiga förutsättningar för att attrahera industrietableringar och få expansions- och nyinvesteringar
Business Sweden InvestKlas Ericson och Kristina Boo2019-10-10
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BUSINESS SWEDEN
Foreign companies have a significant impact on Swedish industry and economic development
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50% of Swedish export originates from foreign-owned companies
39% of all employed in manufacturing industry employed by foreign-owned companies
2 909 Investments assets owned by foreign companies in Sweden (of which 1 1 81 billion SEK is within manufacturing)
Billion SEK
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BUSINESS SWEDEN
THE MANUFACTURING INDUSTRY’S CONTRIBUTION TO GDP
GDP Share(Manufacturing, value added % of GDP, 2018)
Sweden
16.2%of GDP
U.S
11.7% of GDP
U.K
8.3% of GDP
NOTABLE COMPANIESSTEADY INCREASE IN EXPORTS DURING THE PAST 5 YEARS
Investments in buildings, machinery and equipment BSEK
Exports BSEK
SOURCE: SCB 2018. WORLD BANK, LARGEST COMPANIESSPIN CLASSIFICATION USED FOR EXPORT DATA
49,9
57,663,0
67,3 66,3
2014 2015 2016 2017 2018
7%CAGR
INVESTMENT GROWING AT AN AVERAGE ANNUAL RATE OF 7%
The manufacturing industry in Sweden – the backbone of the Swedish economy
1 053
1 110
1 114
1 215
1 345
2014
2015
2016
2017
2018
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BUSINESS SWEDEN
Advanced manufacturing is thriving in Sweden: 6 reasons why
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Top competence
• High skills in automation, lean and flexible manufacturing
• Advantageous employer/labor relations – low risk for strikes
• Very high English proficiency level: #1 globally
Cost competitive & productive
• Top 3 lowest electricity costs in Europe
• Competitive labor costs for highly skilled employees
• European leader in manufacturing productivity
Innovative & digitalized
• #1 European Innovation Scoreboard
• Frontrunner in implementing 5G, IoT and Digital tools
• Invests 3,3% of GDP in R&D
Strong industrial focus
• € 208B exports with positive trade balance
• Diversified industry and subcontractor network
• 6.8 € Billions in capacity investments 2018
Leader in sustainability
• 97% of electricity CO2 free
• 11% GDP Growth and 18% CO2 cut since 2010
• Leader in implementing UN Agenda 2030
Stable business infrastructure
• Favorable tax legislation
• AAA credit rating by all major institutes
• Committed EU & WTO member
Source: Business Sweden Analysis
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BUSINESS SWEDEN 5
6 500
8 200
9 100
11 100
12 000
17 000
21 000
22 000
26 000
30 4001
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3
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5
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7
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Top 10 counties(based on foreign employers)
No. of employees
Västra Götaland 48 800
Stockholm 30 500
Skåne 23 400
Västmanland 10 400
Jönköping 10 100
Östergötland 10 000
Örebro 7 800
Dalarna 7 700
Värmland 7 000
Germany
USA
China
Finland
UK
Norway
Japan
Switzerland
France
Netherlands10
Top 10 countries based on employment
Source: SCB 2019, Business Sweden Analysis Note:*Approximate numbers ** Volvo Cars employ 21,ooo out of the total
Top counties
Foreign owned-manufacturing companies are located across the country but with higher concentration around the three largest regions
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BUSINESS SWEDEN 6
Manufacturing sites in SwedenInteractive map available on our website
“In a global organization you are constantly exposed to
competition both externally and internally”
Lotta Ljungqvist, President and CEO GE Nordic
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BUSINESS SWEDEN
The first step of the site selection process is often time sensitive and with a number of unknownsAvailable and zoned land is a cut-off criteria for most companies in site selection processes
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1
Request for information• The client defines and confirms site needs
and preferred locations• Knockout criteria are set in order to send
an RFI document to selected regions2
Data exchange
• RFI is sent to applicable regions that in turns send out information to municipalities
• Important coordination of questions and gathering of data in the RFI process
• Often lack of all information in this process and short of time
3 RFI Response
• Data is presented to client and commonly returns with more detailed questions
• Site are sorted out quickly by client if not meeting demands
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Lack of information about client and client real requests
Site locations Client
International
Data exchange
Request for information
RFI Response
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2
3
Business Sweden Regions MunicipalitiesLack of information
about Sweden
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BUSINESS SWEDEN
A structural approach and cooperation is key to reach success in investment decisions
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Publicorganisations
Industrial organisations
Municipal representative
Regional representative
Business Sweden in Sweden
Business Sweden in market
Decision maker on Swedish or group level
Network
Delivery team
Client
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BUSINESS SWEDEN
Case example: New establishmentProject Iron
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DECISIONBUSINESS CASEVALIDATIONSCREENING
August• Understanding client needs
• Defining key criteria and timeline
• Engage regional partners
• 1st site search started (August 22nd)
• Long list of 27 sites presented (Sept 1st)
• Short list developed together with client
• First visiting program arranged
• Meeting with key local stakeholders
September
October - November• Support in building business case
• Reports on costs, permits, grants etc.
• Nordic benchmarking
• Connect local service providers
• On site meetings with stakeholders
• Political (local and national) commit.
• Decision support to mgmt. meeting
• Investment decision announced March
December – February
Process, key deliverables and milestones
About the client and project scope• Listed multinational company developing and manufacturing products for the construction industry
• Asked Business Sweden to identify site and facilitate conditions for the construction of a new factory with a total investment sum of ~ €40 millions
• In parallel the client was also evaluating other international locations and needed solid evidence in favor of Sweden to convince group level board
Direct support and engagement from local/regional/national organisations was crucial to the decision!
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BUSINESS SWEDEN 10
Case example: ConsolidationProject Industristrategi
DECISIONVALIDATIONCASE BUILDINGINVOLVEMENT
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April• Municipality contacted Business Sweden to
inform about urgent retention case
• Understanding client needs
• Defining key criteria and timeline
• Comparative study developed
• Key stakeholders identified and involved
• Vison for future operations in Sweden co-
created with R&D partners
May
June-August• Vison and action plan anchored
with partners and decision makers
• Letter of intent with key partner
• High level endorsement meeting
• CEO decision to make Sweden group lead
site
• Downsizing threat never communicated
• 200 direct jobs safeguarded + technology
and research consolidated to Swedish site
September
• Multinational company within the transport industry
• 3 R&D sites in Europe to be consolidated into 1 group lead site for R&D. The Swedish city was one of the sites evaluated
• Project scope: The site management in Sweden needed strategic and hands-on support to build the business case and elevate Sweden’s advantages
About the client and project scope
Process, key deliverables and milestones
Direct support and engagement from local/regional/national organisations was crucial to the decision!
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BUSINESS SWEDEN
Lessons learned
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The value of being a team delivering in a case
Decision makers need our full support to understand and present
the strengths of Sweden
Things can be done to improve a business case regarding an
investment in Sweden
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