Metal Industries 2012*
Structure and current developments
Crisis and transformation
Situation of the MET industries
Labour Market: main developments
Major trends in MET
Production, employment and wages
* MET - Metal, Engineering and Technology-based Industries (capital goods)
Economic and social situation
in Europe
EU economy still under pressure:
Debt crisis and austerity policy severely
weaken consumer and industrial demand
Unemployment at record level
MET
EU economy still under pressure:
• But MET industries have the biggest growth
potential of all industrial sectors in Europe
• Most MET sectors grew faster than the
average for industry or manufacturing as a
whole
• Pharmaceuticals, chemicals, rubber &
plastics have similar potential
MET:
Future Key Sectors Better development than
basic industries
(intermediate goods) or
durable consumer goods
Structural change and
negative austerity
influences in
Shipbuilding, Defence
activities and Fabricated
Metal Products
Automotive Industry
currently under pressure
Future of SD MET:
Preconditions for a successful SD MET
Being always aware of the basic economic
situation and development trends in our sectors
What does this mean?
• What about our economic position?
• Where do we come from?
• In what direction do we want to go?
Based on the answers we will be able to discuss
the political, economic and social needs.
What about the
economic
situation of
industry?
Share of total
employment is
decreasing, from
17.7% in 2005
to 16% in 2011
… crisis, structural
change, more
industrial services
What about the
economic position
of MET?
MET sectors occupy a
very strong position
within industry.
Despite losing 1.2 M
jobs , the share of
total employment
increased from 47.8%
in 2005 to 48.9 % in
2011.
In comparison, much
bigger decline in
employment in basic
industries, mining or
textiles & clothing
What about the
economic position of
MET?
MET industries are
working across
national borders
within regional
added value chains
We therefore need
specific, adjusted
solutions for the
different regions
What about the
economic position of
MET?
Strong key sectors
- Machinery and equipment
- Motor vehicles
- Aircraft industry
- Electrical equipment
- Medical equipment
- Computers, electronics &
opticals
- Repair and installation
services remain within the
MET sectoral scope
- But related industrial
services are increasingly
handled by the services
sector
What about the
economic position of
MET?
Trends in the MET
industries underline that
development depends on
regional added value
related to technological
capability and access to
the main key markets
However, it also depends
on macroeconomic
preconditions
What about the
economic position of
MET?
MET industries in most
countries showed strong
productivity gains since
2005, especially the
transformation countries
of Eastern and SouthEastern Europe , but in
Central and Northern
Europe as well
Countries that are heavily
hit by the debt crisis
recorded lower
productivity gains or a
downward trend
MET employment
under pressure
Despite the relatively
positive development of
production, employment
decreased heavily in
some industries but not
as much as in the
intermediate sectors
Account has to be taken
of the productivity effects
and changes in
employment structures
(temporary agency work,
subcontractors, etc.)
Economic crisis
weakens
MET employment
Most countries in Europe
showed a fall in MET
employment, especially
countries in Southern
Europe that are heavily hit
by the debt crisis or
countries that are
dependent on the
European market
Higher MET employment
was seen in countries that
are more active world-wide
or are in an intensive value
chain with such industries.
Development of
wages
In most European
countries MET wages
have grown faster than
the inflation rate since
2005
Bigger increases were
enjoyed by workers in
East and South Eastern
Europe transformation
countries.
However, in Greece,
Norway, Portugal and UK
wages grew more slowly
than consumer prices
MET Retail Prices
In most European
countries MET industries
increased their retail prices
over the last six years.
Productivity and output
prices have often
increased much faster than
wages. That is why many
MET companies were able
to show shrinking unit
labour costs and rising
profits.
In one or two countries
MET companies managed
to improve their
competitiveness by cutting
prices to the detriment of
workers’ wages.
MET: Unit labour cost
In a first group of European
countries wages grew much
slower than productivity.
Companies improved their
competitiveness to the
detriment of workers’
wages.
In a second group,
increasing unit labour costs
were covered by rising retail
prices, especially in several
Eastern and South Eastern
European countries.
In a third group, increasing
unit labour costs were the
result of the crisis: with
production shrinking more
than employment.
Conclusions:
MET Industries are in a very strong industrial
position and should be supported by appropriate
industrial policy measures.
The revised industrial policy Flagship Initiative
identifies several measures that should be
supported.
However, this strategy has to be supplemented by
proposals from the social partners.
Conclusions:
Our industries must be supported via sustainable measures.
We should permanently analyse and discuss changes and
risks, influences on business development, structural risks
and opportunities.
Therefore we – industriAll Europe and CEEMET - should
build up an early warning and risk management system.
Conclusions:
What should such a system cover?
•
Regular analysis of MET key economic figures
•
Discussion of appropriate labour market measures to avoid
negative short-term business developments and precarious
work in our sectors
•
Discussion of industrial policy measures to support structural
change (anticipation of change, training and education)
•
Analysis and discussion of “Health & Safety” and “Occupational
Pension Systems” ,etc. to provide adequate and sustainable
working conditions
.