Archive:Transport equipment 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 introduces a set of statistical articles which analyse the structure, development and characteristics of the economic activities in the transport equipment sector in the European Union (EU). According to the statistical classification of economic activities in the EU (NACE Rev 1.1), this sector covers two NACE divisions, which are:
- the manufacture of motor vehicles (corresponding to NACE Division 34);
- the manufacture of other types of transport equipment: shipbuilding, railway rolling stock, aerospace equipment, motorcycles and bicycles, and other transport equipment (NACE Division 35).
The activities of the transport equipment sector are treated in more depth in five further articles, which cover the production of:
- cars (NACE Division 34);
- ships and boats (NACE Group 35.1);
- railway equipment (NACE Group 35.2);
- aerospace equipment (NACE Group 35.3);
- motorcycles, bicycles and miscellaneous transport equipment (NACE Groups 35.4 and 35.5).
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Main statistical findings
Structural profile
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The EU-27’s transport equipment manufacturing sector (NACE Subsection DM) consisted of 45.7 thousand enterprises which employed 3.2 million persons in 2006. Paid employees dominated this workforce, accounting for 98.6 % of all persons employed: this proportion was above the non-financial business economy average (86.5 %) as well as the industrial average (94.2 %) and in most of the subsectors the proportion reached 99.0 % or higher.
In terms of output, the EU-27’s transport equipment manufacturing sector was substantial, generating EUR 195.0 billion of value added in 2006, the fifth largest amount among the industrial structural business statistics sectors. The transport equipment manufacturing sector accounted for 3.5 % of the value added created within the EU-27’s non-financial business economy (NACE Sections C to I and K) and employed 2.4 % of the non-financial business economy workforce.
The transport equipment manufacturing sector is dominated by the manufacture of motor vehicles, trailers and semi-trailers (NACE Division 34), as this activity represented 73.9 % of sectoral value added in 2006. Among the EU-27's other transport equipment manufacturing (NACE Division 35) activities, the manufacture of aerospace equipment (NACE Group 35.3; [Aerospace equipment production statistics]) was by far the largest activity in 2006, with a 15.4 % share of value added for the whole of the transport equipment manufacturing sector. These two larger subsectors (motor vehicles and aerospace) both accounted for smaller shares of the sector's workforce than of the sector's value added, whereas the three smallest subsectors, namely the building and repairing of ships and boats (NACE Group 35.1), the manufacture of railway and tramway locomotives and rolling stock (NACE Group 35.2), and the manufacture of miscellaneous transport equipment (NACE Groups 35.4 and 35.5) had larger employment than value added shares.
Germany dominated the EU-27’s transport equipment manufacturing sector: Germany's EUR 78.7 billion of value added in this sector was just over two fifths of the EU-27 total in 2006, and its workforce of close to 1 million persons was just over three tenths of the EU-27 total. It was not just in absolute size that Germany dominated this sector, as it was also the most specialised Member State, in that this sector contributed more to non-financial business economy value added (6.8 %) and non-financial business economy employment (4.6 %) in Germany than in any other Member State, and it was in this sector that Germany recorded its highest contribution to EU-27 value added of any of the industrial NACE subsections.
The manufacture of transport equipment was particularly concentrated within the larger Member States, as Germany, France (13.8 % of EU-27 value added) and the United Kingdom (13.0 %) had a cumulative share of EU-27 value added equal to 67.2 % in 2006, compared with their 53.5 % share of non-financial business economy value added. This high level of concentration meant that relatively few of the Member States were specialised in the manufacture of transport equipment in value added terms, with only the top five (as listed in Table 12.2) reporting that their respective transport equipment manufacturing sectors contributed more to national non-financial business economy value added than the EU-27 average in 2006. Several Member States were specialised in particular subsectors, notably Bulgaria, Greece, Lithuania and Finland in the building and repairing of ships and boats, and Italy in the manufacture of miscellaneous transport equipment (in particular motorcycles and bicycles).
The regional specialisation of transport equipment manufacturing in employment terms is shown in the map. The top two most specialised regions (at the level of detail shown in the map) were both in Germany, and German regions occupied seven of the top ten places. Among the Member States that joined the EU in 2004 or 2007 several regions in the Czech Republic, Hungary, Poland, Romania and Slovakia were relatively specialised in this sector.
Changes in the EU-27 index of production for the manufacture of transport equipment generally took place at a more rapid pace than the industrial average during the ten years to 2007. On average, output rose by 3.9 % per year compared with 2.1 % for the industrial economy as a whole. Year on year growth rates recorded for transport equipment manufacturing exceeded those for the industrial economy in each year from 1997 to 2007, except in 2002 when production fell by 0.4 % for the industrial economy as a whole and by 0.5 % for transport equipment manufacturing. Transport equipment manufacturing output growth exceeded 4 % in three of the last four years in the EU-27: several Member States in central and eastern Europe recorded high annual growth in the five years to 2007, ranging from a high of 22.7 % in Lithuania to growth in excess of 9 % per year over this period in Poland, Slovakia, Bulgaria, Romania the Czech Republic, Hungary and Estonia.
The growth in output for the EU-27 as a whole was largely driven by the manufacture of motor vehicles, trailers and semi-trailers, where the index of production rose on average by 4.4 % per year in the ten years to 2007, while for other transport equipment manufacturing growth averaged 2.1 % per year during the same period. A more detailed analysis of the development of the production index focusing on the largest activities shows that over the ten years to 2007 aircraft and spacecraft manufacturing recorded fairly sustained output growth in the EU-27, with one notable fall in 2002 and a smaller one in 2006. The building and repairing of ships and boats showed a decline in output until 2004, after which three years of output growth were recorded, particularly strong in 2006 and 2007. Railway equipment manufacturing output fell sharply in 2000, since when growth has been recorded more often than not.
Transport equipment manufacturing employment within the EU-27 peaked most recently in 2001, after which the employment index declined gently for five consecutive years. In 2007 this downward trend was reversed, with employment growth around 1.0 %.
Transport equipment output prices in the EU-27 grew steadily over the ten years to 2007, with lower rates of change than for industry as a whole, most notably since 2002. During the five years from 2002 to 2007 output prices for transport equipment manufacturing increased by 1.2 % per year on average, compared to an industrial average of 3.7 %.
The manufacture of transport equipment was concentrated within relatively large enterprises, as SMEs (employing less than 250 persons) generated just 13.8 % of the EU-27’s value added in 2006, compared with a non-financial business economy average of 57.9 %. This was by far the lowest value added contribution of SMEs recorded for any of the structural business statistics sectors. The dominance of large enterprises (with 250 or more persons employed) was particularly prevalent within the manufacture of motor vehicles, trailers and semi-trailers (NACE Division 34) where they accounted for 88.0 % of value added and 82.1 % of employment. Furthermore, the importance of large enterprises was particularly marked in Germany where they accounted for 93.8 % of value added in transport equipment manufacturing in 2006, and this share was also[1] over 90 % in Hungary, the Czech Republic and France.
Employment characteristics
The most notable characteristics of the transport equipment manufacturing workforce are the high proportions of men in the workforce and the very high propensity to employ on a full-time basis. Men accounted for 81.5 % of the EU-27's transport equipment manufacturing workforce in 2007, compared with a non-financial business economy average of 64.9 %. The proportion of the workforce that was male was above the non-financial business economy average for both the manufacture of motor vehicles, trailers and semi-trailers (79.4 %) and in particular the manufacture of other transport equipment (86.4 %). As many as 96.3 % of the EU-27’s transport equipment manufacturing workforce worked on a full-time basis in 2007.
In terms of the age profile of the EU-27's transport equipment manufacturing workforce there was little difference compared with the non-financial business economy average when analysed according to the three age classes presented. Comparing the age structure of the two NACE divisions in this sector, the most notable difference was the proportion of the workforce that was aged 50 or over, which was 20.4 % in the manufacture of motor vehicles, trailers and semi-trailers, compared with 25.9 % for the manufacture of other transport equipment. Among the Member States the age profile of the transport equipment manufacturing workforces in Poland and Slovakia stood out, with more than one third of the workers aged less than 30.
Expenditure, productivity and profitability
In 2006, the transport equipment manufacturing sector recorded a level of gross tangible investment of EUR 31.6 billion, some 3.0 % of the total within the EU-27’s non-financial business economy. Investment in this sector was equivalent to 16.2 % of value added, 2.2 percentage points below the average investment rate for the EU-27’s non-financial business economy, and fractionally below the industrial average (16.6 %). The investment rate was slightly higher for the manufacture of motor vehicles, trailers and semi-trailers subsector, and lower in all of the other subsectors. Slovakia and Slovenia recorded the highest investment rates in this sector in 2006, 93.5 % and 70.3 % respectively. In several Member States tangible investment in transport equipment manufacturing reached 5 % of all tangible investment in the non-financial business economy, most notably in Slovakia, the Czech Republic, Hungary and Germany.
An analysis of operating expenditure shows that the transport equipment manufacturing sector in the EU-27 did not differ greatly from the non-financial business economy average: 15.9 % of operating expenditure was devoted to personnel costs in this sector, compared with a non-financial business economy average of 16.1 %. However, this share was lower in the largest subsector, the manufacture of motor vehicles, trailers and semi-trailers, where the share was 14.2 %, while it was notably higher for the manufacture of aerospace equipment (26.3 %) and the manufacture of railway and tramway locomotives and rolling stock (24.2 %).
In terms of average personnel costs, productivity and profitability the EU-27's transport equipment sector diverged significantly from the industrial and non-financial business economy averages. Average personnel costs were EUR 46.4 thousand per employee, some EUR 17.6 thousand per employee higher than the non-financial business economy average. Most of the subsectors, however, recorded much lower average personnel costs, just over EUR 30.0 thousand per employee, and therefore below the industrial average; the high transport equipment manufacturing average resulted from higher average personnel costs in the two largest subsectors, notably the manufacture of aerospace equipment. A similar pattern could be observed for apparent labour productivity, with the smaller subsectors recording averages below the industrial average, and the two larger subsectors, led by the manufacture of aerospace equipment, recording higher averages. As a result, the transport equipment manufacturing sector recorded apparent labour productivity above the industrial average, reaching EUR 61.9 thousand per person employed.
The relatively high apparent labour productivity combined with the particularly high average personnel costs, resulted in a wage-adjusted labour productivity ratio of 133.3 % for the EU-27's transport equipment manufacturing sector in 2006, well below the 151.1 % average ratio recorded for the non-financial business economy. None of the transport equipment subsectors recorded high wage-adjusted labour productivity ratios, the highest being 137.7 % for the manufacture of miscellaneous transport equipment, while the lowest was 124.1 % for the building and repairing of ships and boats. Among the Member States, the only Member State to record a wage-adjusted labour productivity ratio below parity (100 %) was Ireland, which in fact recorded a negative ratio due to negative value added in this sector. Hungary and Poland (2005) recorded by far the highest wage-adjusted labour productivity ratios in this sector, and in both cases these were well above the average ratios for their non-financial business economies, as was also the case in the Czech Republic, Slovenia and Austria.
The gross operating rate for the EU-27's transport equipment manufacturing sector was also low (5.4 %), half the non-financial business economy average (10.8 %), as high average personnel costs kept the gross operating surplus low. This was the lowest gross operating rate of any industrial NACE subsection. In none of the EU-27’s transport equipment manufacturing subsectors did the gross operating rate exceed the non-financial business economy average in 2006, the highest being 8.4 % for the manufacture of railway and tramway locomotives and rolling stock.
External trade
Just over two thirds (68.5 %) of exports of transport equipment (CPA Subsection DM) by the EU-27 Member States were destined for other Member States, in other words intra-EU trade. This share was slightly higher than the average for all industrial products (CPA Sections C to E). Germany was by far the largest EU exporter of transport equipment in 2007, with exports to the rest of the world valued at EUR 208.0 billion, some 34.2 % of the total for all Member States. France (13.5 %) was the only other Member State to report a double-digit share of exports among the EU-27 Member States. The largest shares of industrial exports accounted for by transport equipment were 27.4 % in Spain and 26.0 % in Slovakia.
The EU-27 ran a significant trade surplus with non-member countries for transport equipment which was valued at EUR 81.2 billion in 2007, the second highest surplus among the industrial structural business statistics sectors. Exports from the EU-27 were valued at EUR 191.4 billion, and imports at EUR 110.2 billion, 16.4 % and 8.3 % respectively of industrial trade. Over two thirds (67.8 %) of exports were accounted for by motor vehicles, trailers and semi-trailers (CPA Division 34), while in contrast, only just over half (54.2 %) of the imports were accounted for by the same products. These differences in the respective shares of transport equipment exports and imports were reflected in the EU-27’s trade surplus for motor vehicles, trailers and semi-trailers (EUR 70.1 billion). Trade in aircraft and spacecraft (CPA Group 35.3) dominated other transport equipment, with exports of EUR 41.5 billion in 2007 generating a trade surplus of EUR 11.2 billion. Trade surpluses just over EUR 2 billion were recorded for ships and boats as well as for railway and tramway locomotives and rolling-stock (CPA Groups 35.1 and 35.2), while a deficit of EUR 4.5 billion was recorded for motorcycles and bicycles (CPA Group 35.4). In 2007 the United States retained its position as the most important market for EU-27 exports of transport equipment, although its share declined.
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), the Labour force survey (LFS) and the COMEXT database for external trade.
Context
The transport equipment manufacturing sector is central to economic development, as it provides the means for transporting both individuals and goods. Demand for transport equipment has risen as the volume of goods transported and the distance travelled by passengers have expanded greatly – see the article on transport and storage statistics for information on transport flows.
The issue of sustainable development is likely to play an important role in future product developments, as transport equipment manufacturers try to meet demands for more environmentally friendly transport solutions, for example, engines with lower fuel consumption or emissions.
Most transport equipment manufacturing activities are structured on the basis of complex pyramidal relationships between major manufacturers and several tiers of component suppliers, ranging from systems suppliers down to very small, specialised manufacturers that may provide a single component for a vehicle. It is common to find clusters of enterprises concentrated in regions around the leading producers.
Further Eurostat information
Publications
- European Business: Facts and figures - 2009 edition
Main tables
Database
Dedicated section
See also
- Industry and construction statistics - short-term indicators
- International trade in motor cars
- Transport and storage statistics - NACE Rev. 1.1
Notes
- ↑ The Netherlands and Poland, 2005; Estonia and Malta, incomplete or not available.