Archive:Industrial processing machinery production statistics - NACE Rev. 1.1
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- Data from January 2009. Most recent data: Further Eurostat information, Main tables and Database.
This article belongs to a set of statistical articles which analyse the structure, development and characteristics of the various economic activities in the European Union (EU). According to the statistical classification of economic activities in the EU (NACE Rev 1.1), the present article covers the production of industrial processing machinery, corresponding to NACE groups 29.4 and 29.5, which are part of the machinery and equipment sector. The activities covered in this article are the manufacture of:
- machine-tools (corresponding to NACE Group 29.4);
- other special purpose machinery (NACE Group 29.5).
_Structural_profile,_EU-27,_2006_(1).PNG)
Main statistical findings
Structural profile
_Structural_profile-_ranking_of_top_five_Member_States_in_terms_of_value_added_and_persons_employed,_2006.PNG)
_Production_of_selected_products,_EU-27,_2007_(1).PNG)
_Expenditure,_productivity_and_profitability,_EU-27,_2006_(1).PNG)
There were 64.0 thousand enterprises in the EU-27 whose main activity was the manufacture of industrial processing machinery (NACE Groups 29.4 and 29.5) in 2006; together they generated EUR 65.4 billion of value added from sales of EUR 200.7 billion. As such, industrial processing machinery contributed just over one third (34.0 %) of the total value added that was generated across the whole of the machinery and equipment (NACE Subsection DK) manufacturing sector. The 1.2 million persons employed in the industrial processing machinery manufacturing sector within the EU-27 in 2006 also represented around a third (33.3 %) of the machinery and equipment workforce.
Of the two NACE groups that make up the manufacture of industrial processing machinery, the largest subsector (using any of the standard indicators to measure size) was the manufacture of other special purpose machinery (NACE Group 29.5), which accounted for a about three quarters of EU-27 sectoral value added (74.9 %) and employment (74.1 %), the remainder being attributed to the manufacture of machine tools (NACE Group 29.4). The largest of the six NACE classes within the other special purpose machinery subsector was the miscellaneous category of other special purpose machinery not elsewhere classified (NACE Class 29.56), which accounted for almost half of the value added (46.8 %) within this subsector, while the manufacture of special purpose machinery for mining, quarrying and construction (NACE Class 29.52, 21.3 %) and for food, beverage and tobacco processing (NACE Class 29.53, 13.5 %) were also relatively important.
The EU-27’s industrial processing machinery manufacturing sector was dominated by output from Germany, which contributed 42.2 % of sectoral value added in 2006 (some EUR 27.6 billion). The German share of EU-27 value added was almost three times as high as the next biggest share, recorded in Italy (15.3 %), which in turn was twice as high as the third highest share in the United Kingdom (7.5 %). When restricting the analysis to just the machine tools subsector, Germany had an even greater presence, providing more than half (51.5 %) of the EU-27’s value added in 2006.
Germany was also the most specialised Member State for industrial processing machinery manufacturing, as this sector contributed 2.4 % to German non-financial business economy (NACE Sections C to I and K) value added in 2006, which was double the EU-27 average (1.2 %); other Member States[1] that were relatively specialised included Finland and Austria (both 2.0 %).
The production indices for the two NACE groups that comprise industrial processing machinery manufacturing followed a similar path in the past decade. Growth was, on average, relatively modest within the EU-27, averaging 1.7 % per year during the ten-year period from 1997 to 2007 for machine tools, while the corresponding rate for other special purpose machinery was 1.6 % per year. Both of these values were considerably lower than the average rates of growth recorded for the whole of machinery and equipment manufacturing over the same period (2.6 % per year).
Expenditure and productivity
EU-27 gross tangible investment in the industrial processing machinery manufacturing sector was EUR 5.5 billion in 2006, almost one third (31.4 %) of all investment in the machinery and equipment manufacturing sector. The investment rate for the industrial processing machinery manufacturing sector (8.3 %) was slightly lower than the machinery and equipment average (9.0 %).
Personnel costs accounted for 25.0 % of operating expenditure in the EU-27's industrial processing machinery manufacturing sector in 2006, which was somewhat higher than the machinery and equipment average of 23.6 %. Average personnel costs in the EU-27’s industrial processing machinery manufacturing sector were EUR 38.6 thousand per employee in 2006 (almost the same as the machinery and equipment average). Each person employed within the EU-27’s industrial processing machinery manufacturing sector generated an average of EUR 53.8 thousand of added value in 2006, which was EUR 1.1 thousand more than the average recorded for the whole of the machinery and equipment sector. Combining these two ratios results in a wage-adjusted labour productivity ratio of 139.3 % for the industrial processing machinery manufacturing sector in 2006, which – although the highest ratio among the subsectors covered by Machinery and equipment production statistics – was well below the non-financial business economy average (151.1 %).
Looking in more detail at these productivity measures, the highest level of labour productivity in the EU-27 was recorded for the manufacture of special purpose machinery for paper and paperboard production (NACE Class 29.55), where each person employed generated an average of EUR 61.3 thousand of value added in 2006. This disparity was however reflected in the average personnel costs for this subsector, which stood at EUR 49.9 thousand per employee, again by far the highest level among the NACE classes covered.
Data sources and availability
The main part of the analysis in this article is derived from structural business statistics (SBS), including core, business statistics which are disseminated regularly, as well as information compiled on a multi-yearly basis, and the latest results from development projects.
Other data sources include the PRODCOM statistics on the production of manufactured goods.
Context
Technological advancements in the machinery and equipment that is used in other sectors of the economy (particularly in mining, manufacturing, energy provision and construction) can have a considerable impact upon the speed, quality and quantity of what is produced, thereby impacting on downstream productivity and profitability. The machinery and equipment sector is sensitive, therefore, to overall economic conditions and investment patterns both within the European Union and across the world (the two arguably being more intertwined than ever).
Industrial processing machinery covers the manufacture of a wide range of products that are destined for specific purposes within downstream manufacturing sectors. As such, demand is closely linked to general economic developments, as during periods of recession manufacturers in other areas of the industrial economy are unlikely to invest in or renew their machinery and equipment. Industrial processing machinery producers make specialist machines and applications to aid the manufacturing processes in a range of diverse sectors: for example, special purpose machinery for mining and quarrying, metallurgy, food and beverages processing, textiles and clothing production, paper and paperboard production, or construction.
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Notes
- ↑ Bulgaria, Cyprus, Latvia, Poland and Romania, 2005; Luxembourg, Malta and the Netherlands, not available.