Archive:Manufacture of machinery and equipment statistics - NACE Rev. 2
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- Data from April 2013. Most recent data: Further Eurostat information, Main tables and Database.
This article presents an overview of statistics for machinery and equipment manufacturing in the European Union (EU), as covered by NACE Rev. 2 Division 28.
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(% share of sectoral total) - Source: Eurostat (sbs_na_ind_r2)
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(% share of sectoral total) - Source: Eurostat (sbs_sc_ind_r2)
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Main statistical findings
Structural profile
There were 98.1 thousand enterprises operating with machinery and equipment manufacturing (Division 28) as their main activity in the EU-27 in 2010. Together they employed 2.84 million persons, equivalent to 2.1 % of those employed in the non-financial business economy (Sections B to J and L to N and Division 95) and 9.5 % of the manufacturing (Section C) workforce. They generated EUR 150.0 billion of value added which was 2.9 % of the non-financial business economy total and 10.9 % of the manufacturing total: in value added terms, this was the largest NACE division within the manufacturing sector.
In employment terms, the EU-27’s machinery and equipment manufacturing sector was the third largest manufacturing NACE division in 2010 after food products manufacturing (Division 10) and the manufacture of fabricated metal products (Division 25).
The apparent labour productivity of the EU-27’s machinery and equipment manufacturing sector in 2010 was EUR 60.9 thousand per person employed, above the non-financial business economy average of EUR 44.8 thousand per person employed and the manufacturing average of EUR 52.8 thousand per person employed. Furthermore, average personnel costs within the EU-27’s machinery and equipment manufacturing sector were also relatively high, EUR 43.9 thousand per employee, compared with averages of EUR 30.9 thousand per employee for the non-financial business economy and EUR 35.8 thousand per employee for manufacturing. The combination of these two indicators produces the wage-adjusted labour productivity ratio which stood at 138.8 % for the EU-27’s machinery and equipment manufacturing sector in 2010, 6 percentage points below the non-financial business economy average (144.8 %). However, the gross operating rate of the EU-27’s machinery and equipment manufacturing sector was not particularly low, as the gross operating surplus was equivalent to 9.5 % of turnover, midway between the manufacturing (9.0 %) and non-financial business economy (10.1 %) averages.
Sectoral analysis
General-purpose machinery is machinery that is typically used in a wide range of different activities — a separation is made between machinery that is power related (Group 28.1), on one hand, and other general purpose equipment (Group 28.2) on the other hand. These two general-purpose machinery manufacturing subsectors were the largest subsectors in 2010, accounting for a combined share of just above three fifths of total value added (64.0 %) and of the total workforce (60.8 %).
Special-purpose machinery is machinery designed for exclusive use in one or a small cluster of activities. The manufacture of metal forming machinery and machine tools (Group 28.4) was somewhat larger than the manufacture of agricultural and forestry machinery (Group 28.3), but neither of these subsectors accounted for more than 10 % of the EU-27’s value added in the machinery and equipment manufacturing sector in 2010. As such, the third largest subsector was the manufacture of other special-purpose machinery (Group 28.9) which contributed one quarter (24.9 %) of sectoral value added and employed just over one quarter (25.7 %) of the sectoral workforce.
The two general-purpose machinery manufacturing subsectors recorded high levels of apparent labour productivity in 2010, at EUR 72.2 thousand per person employed for the EU-27’s power related machinery manufacturing subsector and EUR 56.7 thousand per person employed for other general-purpose machinery. The manufacture of other special-purpose machinery (EUR 60.0 thousand per person employed was the only other subsector to register EU-27 apparent labour productivity that was above the manufacturing average (EUR 52.8 thousand per person employed) in 2010, although labour productivity ratios for the two smallest subsectors were above the non-financial business economy average (EUR 44.8 thousand per person employed).
The power related general-purpose machinery manufacturing subsector also had the highest average personnel costs within the EU-27’s machinery and equipment manufacturing sector in 2010, at EUR 48.4 thousand per employee. The lowest average personnel costs were EUR 36.0 thousand per employee for the manufacture of agricultural and forestry machinery which remained just above the manufacturing average (EUR 35.8 thousand per employee).
These relatively high average personnel costs brought down the wage-adjusted labour productivity ratios for most of the EU-27’s machinery and equipment manufacturing subsectors. This ratio ranged in 2010 from 124.0 % for the manufacture of metal forming machinery and machine tools to 149.4 % for the power related general-purpose machinery manufacturing subsector; the latter was the only one of the five subsectors to record a ratio above the manufacturing average (148.0 %).
Turning to operating profitability, the two smaller special-purpose machinery manufacturing subsectors recorded EU-27 gross operating rates that were below the manufacturing average (9.0 %) in 2010, while two of the three larger subsectors matched this rate and the power related general-purpose machinery manufacturing subsector (10.8 %) exceeded it.
Country analysis
The highest level of value added in the machinery and equipment manufacturing sector was generated in Germany, at EUR 70.0 billion, equivalent to 40.6 % of the EU-27 total in 2010. This was Germany’s third highest share of EU-27 value added in 2010 among all of the NACE divisions within the non-financial business economy. Germany was the largest Member State in value added terms in each of the five machinery and equipment manufacturing subsectors; its share of EU-27 value added peaked, in 2010, at 55.1 % for the manufacture of metal forming machinery and machine tools.
The relative importance of the machinery and equipment manufacturing sector was highest in Germany and Hungary, where its share of non-financial business economy value added was 5.4 % and 5.0 % respectively. The next most specialised Member States were Finland (4.4 % of non-financial business economy value added) and Italy (4.2 %), while the least specialised Member States were Ireland, Estonia, Lithuania, Portugal, Latvia and Cyprus — as less than 1.0 % of their non-financial business economy value added was generated in the machinery and equipment manufacturing sector in 2010.
Hungary’s high specialisation was due, in large part, to its high degree of specialisation in the power related general-purpose machinery manufacturing subsector and, to a lesser extent, its specialisation in the agricultural and forestry machinery manufacturing subsector; Hungary was relatively unspecialised in the remaining subsectors. By contrast, Germany was relatively specialised across all five subsectors that constitute the machinery and equipment manufacturing sector, as the share of non-financial business economy value added that was generated by these five subsectors was consistently higher in Germany than in the EU-27 as a whole. Germany’s highest degree of specialisation (within the machinery and equipment manufacturing sector) was recorded for the manufacture of metal forming machinery and machine tools subsector. Finland was the most specialised Member State for the manufacture of agricultural and forestry machinery, as well as for the manufacture of other special-purpose machinery and was also relatively specialised in the manufacture of other general-purpose machinery.
Although Germany had by far the largest machinery and equipment manufacturing sector and was also the most specialised EU Member State, it had the lowest wage-adjusted labour productivity ratio among the Member States for this sector, at 127.8 % in 2010, slightly lower than the level reached in France (128.8 %) and Greece (129.8 %, 2009 data). By contrast, the second most specialised Member State, Hungary, recorded by far the highest wage-adjusted labour productivity ratio, 318.6 %. The wage-adjusted labour productivity ratio for the machinery and equipment manufacturing sector in Hungary was far above the Hungarian average (169.8 %) for the whole of its non-financial business economy. Hungary also had the highest gross operating rate (23.5 %) in the machinery and equipment manufacturing sector in 2010 and was the only Member State with a rate above 20.0 %. In a similar vein, the gross operating rates for the machinery and equipment manufacturing sector in France (6.4 %) and Germany (6.7 %) were relatively low in 2010, as they had been for wage-adjusted labour productivity ratios.
Size class analysis
Large enterprises (employing 250 or more persons) generated 54.6 % of the EU-27’s value added within the machinery and equipment manufacturing sector in 2010, which was above the corresponding share of large enterprises in the value added of the non-financial business economy (42.3 %), but below the manufacturing average (55.5 %). By contrast, large enterprises employed 45.5 % of the machinery and equipment manufacturing workforce which was above the corresponding share of large enterprises within the non-financial business economy (32.5 %) and manufacturing (40.0 %) workforces. Medium-sized enterprises (employing 50 to 249 persons) were also relatively important for the EU-27’s machinery and equipment manufacturing sector, contributing more value added (27.0 %) and employment (29.2 %) than was typical for manufacturing as a whole (22.6 % and 25.3 % respectively).
Medium-sized enterprises in Lithuania and Slovenia provided more than two fifths of the value added that was generated in the machinery and equipment manufacturing sector in 2010: this was higher than the share of any of the other three size classes shown in Table 6b, while medium-sized enterprises also accounted for the highest share of total value added in Portugal and Italy, as well as in Croatia. Small enterprises (employing 10 to 49 persons) in Spain provided 31.3 % of the machinery and equipment manufacturing sector’s value added, which was also more than any of the other size class, while micro enterprises (employing fewer than 10 employees) in Greece (2009 data) accounted for the highest share of value added among any of the size classes. Aside from these six Member States and Cyprus (where there were no large enterprises), large enterprises made the greatest contribution to sectoral value added in all of the remaining Member States. The share of value added within the machinery and equipment manufacturing sector that was provided by large enterprises exceeded one half in 11 of the Member States, exceeded three fifths in five of the Member States, and peaked at 81.2 % in Hungary.
Data sources and availability
The analysis presented in this article is based on the main dataset for structural business statistics (SBS) and size class data, all of which are published annually.
The main series provides information for each EU Member State as well as a number of non-member countries at a detailed level according to the activity classification NACE. Data are available for a wide range of variables.
In structural business statistics, size classes are generally defined by the number of persons employed. A limited set of the standard structural business statistics variables (for example, the number of enterprises, turnover, persons employed and value added) are analysed by size class, mostly down to the three-digit (group) level of NACE. The main size classes used in this article for presenting the results are:
- small and medium-sized enterprises (SMEs): with 1 to 249 persons employed, further divided into;
- micro enterprises: with less than 10 persons employed;
- small enterprises: with 10 to 49 persons employed;
- medium-sized enterprises: with 50 to 249 persons employed;
- large enterprises: with 250 or more persons employed.
Context
This article presents an overview of statistics for the machinery and equipment manufacturing sector in the EU, as covered by NACE Rev. 2 Division 28. This division includes the manufacture of machinery and equipment that act independently on materials either mechanically or thermally or perform operations on materials (such as handling, spraying, weighing or packing), including their mechanical components that produce and apply force, and any specially manufactured primary parts. This includes the manufacture of fixed and mobile or hand-held devices, regardless of whether they are designed for industrial, building and civil engineering, agricultural or home use. The manufacture of special equipment for passenger or freight transport within demarcated premises also belongs within this division.
This division distinguishes between the manufacture of special-purpose machinery and general-purpose machinery. General-purpose machinery is machinery that is typically used in a wide range of different activities — a separation is made between machinery that is power related (engines and turbines, pumps and compressors, taps and valves, bearings, gears, gearing and driving elements), on one hand, and other general purpose equipment (ovens, furnaces and furnace burners, lifting and handling, non-computer office equipment, power-driven hand tools and non-domestic cooling and ventilation equipment) on the other hand. Special-purpose machinery is machinery designed for exclusive use in one or a small cluster of activities — a separation is made between activities in agriculture and forestry, on one hand, and industrial activities on the other hand. This division also includes other special purpose machinery, not covered elsewhere in the classification, whether or not used in a manufacturing or industrial process, such as fairground amusement equipment, automatic bowling alley equipment, and so on.
This NACE division is composed of five groups:
- the manufacture of general-purpose machinery (Group 28.1);
- the manufacture of other general-purpose machinery (Group 28.2);
- the manufacture of agricultural and forestry machinery (Group 28.3);
- the manufacture of metal forming machinery and machine tools (Group 28.4);
- the manufacture of other special-purpose machinery (Group 28.9).
This division excludes the manufacture of metal products for general use (which are included as part of the manufacture of fabricated metal products, Division 25). It also excludes associated control devices, computer equipment, measurement and testing equipment, electricity distribution and control apparatus (as covered by the manufacture of computer, electronic and optical products and the manufacture of electrical equipment, Divisions 26 and 27), as well as general-purpose motor vehicles (as covered by the manufacture of motor vehicles, trailers and semi-trailers and the manufacture of other transport equipment, Divisions 29 and 30).
See also
- Manufacturing
- Other analyses of the business economy by NACE Rev. 2 sector
- Structural business statistics introduced
Further Eurostat information
Publications
- European business - facts and figures (online publication)
- Key figures on European Business – with a special feature section on SMEs – 2011 edition
Main tables
Database
- SBS - industry and construction (sbs_ind_co)
- Annual detailed enterprise statistics - industry and construction (sbs_na_ind)
- Annual detailed enterprise statistics for industry (NACE Rev. 2 B-E) (sbs_na_ind_r2)
- SMEs - Annual enterprise statistics by size class - industry and construction (sbs_sc_ind)
- Industry by employment size class (NACE Rev. 2 B-E) (sbs_sc_ind_r2)
- Annual detailed enterprise statistics - industry and construction (sbs_na_ind)
- SBS - regional data - all activities (sbs_r)
- SBS data by NUTS 2 regions and NACE Rev. 2 (from 2008 onwards) (sbs_r_nuts06_r2)
Dedicated section
Source data for tables and figures (MS Excel)
Other information
- Decision 1578/2007/EC of 11 December 2007 on the Community Statistical Programme 2008 to 2012
- Regulation 295/2008 of 11 March 2008 concerning structural business statistics