Statistics Explained

Archive:Metals and metal products 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 introduces a set of statistical articles which analyse the structure, development and characteristics of the economic activities in the metals and metal products sector in the European Union (EU). This sector corresponds with two NACE Rev 1.1 divisions:

  • the manufacture of basic metals (NACE Division 27);
  • the downstream activity of the manufacture of fabricated metal products (NACE Division 28).

The activities of this sector are treated in more depth in seven further articles, the first three of which cover NACE Division 27, and the last four of which cover NACE Division 28:

This article does not include the manufacture of machinery and equipment, which is covered separately in the article on Machinery and equipment production statistics - NACE Rev. 1.1.

Note that there are no external trade statistics for a number of industrial services covered in these articles, namely foundry work services (CPA Group 27.5), forging, pressing, stamping and roll forming metal services (CPA Group 28.4) and treatment and coating of metal services and general mechanical engineering services (CPA Group 28.5).

Table 1: Manufacture of basic metals and fabricated metal products (NACE Subsection DJ). Structural profile, EU-27, 2006 (1).

Main statistical findings

Structural profile

Table 2: Manufacture of basic metals and fabricated metal products (NACE Subsection DJ). Structural profile: ranking of top five Member States, 2006
Map 1: Manufacture of basic metals and fabricated metal products (NACE Subsection DJ). Persons employed in the manufacture of metals and metal products (NACE Subsection DJ) as a proportion of those employed in the non-fi nancial business economy (NACE Sections C to I and K) (%), 2006
Figure 1: Manufacture of basic metals and fabricated metal products (NACE Subsection DJ). Evolution of main indicators, EU-27 (2000=100)
Figure 2: Manufacture of basic metals and fabricated metal products (NACE Subsection DJ). Share of employment by enterprise size class, EU-27, 2006
Table 3: Manufacture of basic metals and fabricated metal products (NACE Subsection DJ). Expenditure, productivity and profitability, EU-27, 2006 (1)
Table 4: Basic metals and fabricated metal products (CPA Subsection DJ). External trade, EU-27, 2007
Table 5: Manufacture of basic metals (NACE Division 27). Main indicators, 2006 (1)
Table 6: Manufacture of fabricated metal products, except machinery and equipment (NACE Division 28). Main indicators, 2006 (1)

There were 417.7 thousand enterprises throughout the Member States for which metal and metal products manufacturing (NACE Subsection DJ) was their principal activity in 2006. In terms of both the number of persons employed and value added generated the EU-27’s metals and metal products manufacturing sector was the largest sector among the industrial (NACE Sections C to E) structural business statistics sectors. The sector employed almost 5.1 million persons across the EU-27 in 2006, corresponding to 3.9 % of the workforce within the non-financial business economy (NACE Sections C to I and K). The proportion of paid employees among the number of persons employed by the metals and metal products manufacturing sector was 92.2 % in 2006, a higher proportion than across the non-financial business economy as a whole (86.5 %). From a turnover of EUR 863.7 billion in 2006, the EU-27’s metal and metal products sector created EUR 244.4 billion of added value, a 4.3 % contribution towards the value added of the non-financial business economy.

The largest subsector (in terms of the different groups of metals and metal products) was forging, metal coating and mechanical engineering (NACE Groups 28.4 and 28.5, as presented in Forging, metal coating and mechanical engineering statistics - NACE Rev. 1.1), which contributed about one quarter of value added (24.6 %) and employment (28.2 %). The manufacture of miscellaneous fabricated metal products (NACE Groups 28.6 and 28.7, as presented in Fabricated metal product manufacturing statistics - NACE Rev. 1.1) subsector and the first processing of ferrous metal (NACE Groups 27.1 to 27.3, as presented in Iron and steel production and processing statistics - NACE Rev. 1.1) each provided a further one fifth (in both cases 20.3 %) of the value added within this sector in 2006, although the former was much larger than the latter in terms of employment (21.9 % of the metals and metal products workforce compared with 12.1 %). The second largest subsector in terms of employment was the manufacture of structural metal products (NACE Group 28.1, as presented in Structural metal products manufacturing statistics - NACE Rev. 1.1), which accounted for a little over one fifth of all employment (22.0 %), although it was only the fourth largest subsector in terms of value added (accounting for 16.7 %). The other subsectors presented in Precious and non-ferrous metal production statistics - NACE Rev. 1.1, Metal casting statistics - NACE Rev. 1.1 and Boilers, metal containers and steam generators production statistics - NACE Rev. 1.1, each accounted for less than 7.5 % of sectoral employment or value added.

Among the Member States, the metals and metal products manufacturing sector in Germany was the largest, generating EUR 64.9 billion of added value in 2006, a little over one quarter (26.6 %) of the EU-27 total. In these terms, the metals and metal products manufacturing sectors were next largest in Italy (16.3 % of EU-27 value added) and France (11.9 %). The Member State most specialised in the manufacture of metals and metal products was Slovakia, however, where the contribution of metals and metal products manufacturing to the total value added of the non-financial business economy was 9.0 % in 2006, just over twice the EU-27 average. There was also strong specialisation in this activity in Slovenia and the Czech Republic.

The metal and metal products manufacturing sector provided relatively high levels of employment in a number of regions across the EU-27 in 2006; representing more than one in every ten workers within the regional non-financial business economies of Norra Mellansverige (Sweden), Arnsberg, Gießen and Saarland (all Germany), Moravskoslezsko (the Czech Republic), Východné Slovensko (Slovakia) and País Vasco (Spain). There were several countries where a large share of the regions were relatively specialised in these activities.

The annual development of the EU-27 production index for metals and metal products manufacturing during the ten years through until 2007 was very similar to the development of output for industry (NACE Sections C to E) as a whole; between 1997 and 2007, the average rate of growth in both indices was 2.1 % per year.

The average EU-27 rate of growth in the output of the manufacture of fabricated metal products (NACE Division 28) during the ten years through until 2006 was much stronger (2.7 % per year) than that (1.1 % per year) recorded for the manufacture of basic metals (NACE Division 27). Among the dozen NACE groups that comprise metal and metal products manufacturing, the strongest rates of growth in output concerned the two other metal processing activities (see Forging, metal coating and mechanical engineering statistics - NACE Rev. 1.1); the annual average rate of growth in the output of the treatment and coating of metal and general mechanical engineering (NACE Group 28.5) was 4.4 % per year and that of the forging, pressing, stamping and roll forming of metals (NACE Group 28.4) was 4.2 % per year.

The development of the EU-27’s domestic output price index for metals and metal products manufacturing during the ten years between 1997 and 2007 reflected three distinct periods; firstly, there were relatively stable prices between 1997 and 1999, secondly, there was a rise in 2000 to a new plateau that was maintained through 2001 and 2002, and finally there was a strong upsurge in prices through until 2007. This was also the broad development for industrial output prices as a whole. The rise in the domestic output price index for metals and metal products between 1997 and 2002 averaged 0.7 % per year but the index rose on average by 5.7 % per year in the last five years of the period under review, partly reflecting price increases for raw materials and energy. The rise in the domestic output price of basic metals (NACE Division 27) was particularly strong, rising 9.6 % per year on average in the five years through to 2007.

Against this background of strongly rising output and domestic output prices for metals and metal products in the period between 2003 and 2007, there was a partial reversal in the downward trend in the index of employment for metals and metal products manufacturing. Over the ten years through to 2007, the EU-27 index of employment for metals and metal products manufacturing declined by an average 0.2 % per year, which was much less than the average rate of decline (-1.2 % per year) across the whole of industry. Indeed, nearly every other industrial NACE subsection reported a stronger fall in the employment index over this period, with the low growth (0.7 %) in rubber and plastics manufacturing (NACE Subsection DH) and no change in transport equipment manufacturing (NACE Subsection DM) the only exceptions.

Small and medium-sized enterprises (SMEs), which employ less than 250 persons, generated the majority (61.2 %) of value added in the EU-27’s metals and metal products manufacturing sector in 2006. Within the sector, however, there was a distinct difference between the dominance of large enterprises (that employ 250 persons or more) in the manufacture of basic metals (accounting for 74.2 % of the value added generated by this activity) and the dominance of SMEs in the manufacture of fabricated metal products (accounting for 78.3 % of value added). This dichotomy placed these two activities at odds with the average situation across the non-financial business economy, for which SMEs contributed a relatively small majority (57.9 %) of value added. These structural differences were also apparent in terms of relative shares of employment.

Employment characteristics

In 2007, a little more than eight in every ten workers (84.5 %) within the EU-27’s metals and metal products manufacturing sector were male, a much higher share than that across the non-financial business economy as a whole (64.9 %). This was a characteristic that was noted across all of the Member States for which information is available[1]. An above average proportion of those working (94.7 %) in the EU-27’s metals and metal products manufacturing sector were in full-time employment, a characteristic that was more similar to the situation across industry as a whole (an average of 92.7% being male) than the non-financial business economy (an average of 85.7 %). This was also a characteristic generally noted among the Member States.

The proportion of young workers aged 15 to 29 years old in the metals and metal products manufacturing sector was somewhat lower than the average across the EU-27’s non-financial business economy (21.6 % compared with 24.3 %), the difference being made up for in the proportion of workers aged 50 or more (24.5 % compared with 21.9 %). Among the Member States, the share of young workers in the metals and metal products manufacturing sector was disproportionately low in the Netherlands, Romania and the United Kingdom, being about one third less than the corresponding share of this age group within their respective non-financial business economies.

Expenditure, productivity and profitability

Four fifths (80.8 %) of operating expenditure in the EU-27’s metals and metal products manufacturing sector went on goods and services in 2006, although this was a little less than the average share (83.9 %) across the non-financial business economy. The remaining share (19.2 %) of operating expenditure went on personnel costs, however, there were stark differences between the two metals and metal products manufacturing NACE divisions; personnel costs in the EU-27’s manufacture of fabricated metal products activity accounted for just over a quarter (25.8 %) of operating expenditure in 2006, more than twice the proportion (11.6 %) recorded for the EU-27’s manufacture of basic metals activity, despite the fact that average personnel costs in the former were about EUR 10.0 thousand per employee less than the average for the manufacture of basic metals (EUR 39.6 thousand per employee in 2006). In this way, the metals and metal products manufacturing sector comprised one relatively capital-intensive activity and one relatively labour-intensive, low-paid activity. Average personnel costs in the EU-27’s metals and metal products manufacturing sector were EUR 32.2 thousand per employee in 2006, some 11.8 % more than the non-financial business economy average.

Tangible investment across the EU-27 in the metals and metal products manufacturing sector was EUR 33.4 billion in 2006, which corresponded to 3.2 % of all tangible investment in the EU-27’s non-financial business economy. This proportion was less than the equivalent proportion in value added terms, resulting in an investment rate within the metals and metal products manufacturing sector (13.6 %) that was well below the average for the non-financial business economy (18.4 %).

Each person employed within the EU-27’s metals and metal products manufacturing sector generated an average EUR 48.1 thousand of value added in 2006, about a tenth more than within the non-financial business economy as a whole. Although the apparent labour productivity of this sector more than covered its average personnel costs, the wage-adjusted labour productivity ratio of 149.3 % was a little lower than that recorded for the whole of the non-financial business economy (151.1 %). Within the metals and metal products manufacturing sector, the wage-adjusted labour productivity ratio of the EU-27’s basic metals manufacturing activity (182.1 %) was much higher than the ratio for the fabricated metal products activity (137.9 %) in 2006.

The gross operating rate shows the relationship between the gross operating surplus (value added minus personnel costs) and turnover in percentage terms, and is a measure of operating profitability. The gross operating rate of the EU-27’s metals and metal products manufacturing sector was 10.8 % in 2006, the same average rate as recorded for the non-financial business economy. Within this sector, the operating profitability of the fabricated metal products activity (12.1 %) was substantially higher than the rate for the basic metals manufacturing activity (9.3 %).

External trade

Total (intra- and extra-EU) exports of metal and fabricated metal products (CPA Subsection DJ) by the EU-27 Member States were valued at EUR 393.3 billion in 2007, while imports were larger, a total of EUR 409.9 billion. Exports (intra- and extra-EU) of metals and fabricated metal products from Germany were valued at EUR 94.7 billion in 2007, accounting for a little less than one quarter (24.1 %) of all exports of these products by EU-27 Member States. Among the Member States, Germany also had the largest trade surplus (EUR 9.1 billion) in metal and fabricated metal products, although it was much lower than the surplus it had recorded two years earlier (EUR 13.3 billion). Other sizeable trade surpluses in 2007 were recorded for Belgium (EUR 4.5 billion), Sweden, the Netherlands, Austria, Slovakia, Luxembourg and Finland (all between EUR 1.2 billion and EUR 2.3 billion). In contrast, Spain and Italy had the largest trade deficits for these products (EUR 8.0 billion and EUR 6.5 billion respectively). It is also worth noting that the share of metals and fabricated metal products exports in national industrial (CPA Sections C to E) exports was highest in Bulgaria (26.1 %), where such goods accounted for the highest proportion of industrial exports (at the level of CPA subsections), and Luxembourg (25.8 %), where they accounted for the second highest proportion of industrial exports after electrical and optical equipment (CPA Subsection DL).

Almost three quarters (74.0 % based on export values) of Member States’ trade in metal and metal products was with other Member States (so-called intra-EU trade), which represented a much higher proportion than the average (67.6 %) for all industrial products.

Focusing on trade with non-member countries (so-called extra-EU trade), the EU-27 recorded a trade deficit of EUR 24.8 billion for metals and fabricated metal products in 2007. This trade deficit reflected a significant turnaround from the situation in 2005 when the EU-27 had reported a trade surplus of EUR 3.3 billion. The underlying feature of this turnaround was the growth in the value of imports from non-member countries from EUR 72.9 billion in 2005 to EUR 126.9 billion in 2007, the highest shares of which came from China (leaping to 16.3 % in 2007) and Russia (down to 11.1 %). This growth was much stronger than that for the value of EU-27 exports of metals and fabricated metal products, which increased to EUR 102.1 billion in 2007, accounting for 8.8 % of industrial exports.

The EU-27’s trade deficit in metals and fabricated metal products in 2007 was dominated by the trade deficit of EUR 32.2 billion for basic metals (CPA Division 27), there being a trade surplus of EUR 7.4 billion for fabricated metal products (CPA Division 28).

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 short-term statistics (STS) and the COMEXT database for external trade,

Context

The metals and metal products manufacturing sector is part of a diverse and interwoven economic network that incorporates upstream sectors and large downstream segments of manufacturing such as the transport equipment manufacturing and construction sectors. The challenges faced by the EU’s metals and metal products manufacturing sector therefore have direct and indirect consequences on many other parts of the economy. Looking ahead, a Communication COM(2008) 108 from the European Commission to the Council and the European Parliament on the competitiveness of the metals industries was adopted in February 2008, and highlighted the challenges to be faced.

The EU-27 is largely dependent on imports of ore and concentrates for steel, ferro-alloys and non-ferrous metals production; it produces only 1.7 % of the world’s nickel, 2 % of its iron ore and 5 % of its copper (SEC(2007 771). Access to minerals and secondary raw materials at competitive prices is important, especially given the exhaustion of certain deposits in the EU-27 over time or their absence, and supply constraints that have been exacerbated by the strong growth in international demand from emerging economies such as China and India. This concern was part of a raw materials initiative COM(2008) 699 of the European Commission.

Parts of the metals and metal products manufacturing sector are highly energy-intensive. Energy costs for the EU-27’s metals and metal products manufacturing sector accounted for 4.4 % of purchases of goods and services in 2006, which was the third joint highest proportion among the industrial structural business statistics sectors, albeit well behind non-energy mining and quarrying (10.1 %) and other nonmetallic mineral products (9.5 %). Within this sector, however, energy costs in the casting of metals subsector accounted for 7.2 % of purchases of goods and services in 2006 and in the first processing of ferrous metals as much as 7.9 %. This level of energy consumption has important implications for energy and environmental (particularly climate change) policy.

The metals and metal products manufacturing sector is covered by a Directive on Integrated Pollution Prevention and Control (IPPC) and REACH. A proposal COM(2008) 30 from the European Commission on the review of EU Emissions trading system (ETS) adopted in January 2008 foresees the inclusion of non-ferrous metals from 2013 onwards, along with some transitional measures to avoid ‘carbon leakage’.

See also

Further Eurostat information

Publications

Main tables

Database

Dedicated section

Further information

Notes

  1. ↑ Malta, not available.
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