Strategisk planläggning av verksamhetsmark är en av flera viktiga förutsättningar för att attrahera industrietableringar och få expansions- och nyinvesteringar

Business Sweden InvestKlas Ericson och Kristina Boo2019-10-10

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BUSINESS SWEDEN

Foreign companies have a significant impact on Swedish industry and economic development

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50% of Swedish export originates from foreign-owned companies

39% of all employed in manufacturing industry employed by foreign-owned companies

2 909 Investments assets owned by foreign companies in Sweden (of which 1 1 81 billion SEK is within manufacturing)

Billion SEK

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BUSINESS SWEDEN

THE MANUFACTURING INDUSTRY’S CONTRIBUTION TO GDP

GDP Share(Manufacturing, value added % of GDP, 2018)

Sweden

16.2%of GDP

U.S

11.7% of GDP

U.K

8.3% of GDP

NOTABLE COMPANIESSTEADY INCREASE IN EXPORTS DURING THE PAST 5 YEARS

Investments in buildings, machinery and equipment BSEK

Exports BSEK

SOURCE: SCB 2018. WORLD BANK, LARGEST COMPANIESSPIN CLASSIFICATION USED FOR EXPORT DATA

49,9

57,663,0

67,3 66,3

2014 2015 2016 2017 2018

7%CAGR

INVESTMENT GROWING AT AN AVERAGE ANNUAL RATE OF 7%

The manufacturing industry in Sweden – the backbone of the Swedish economy

1 053

1 110

1 114

1 215

1 345

2014

2015

2016

2017

2018

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BUSINESS SWEDEN

Advanced manufacturing is thriving in Sweden: 6 reasons why

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Top competence

• High skills in automation, lean and flexible manufacturing

• Advantageous employer/labor relations – low risk for strikes

• Very high English proficiency level: #1 globally

Cost competitive & productive

• Top 3 lowest electricity costs in Europe

• Competitive labor costs for highly skilled employees

• European leader in manufacturing productivity

Innovative & digitalized

• #1 European Innovation Scoreboard

• Frontrunner in implementing 5G, IoT and Digital tools

• Invests 3,3% of GDP in R&D

Strong industrial focus

• € 208B exports with positive trade balance

• Diversified industry and subcontractor network

• 6.8 € Billions in capacity investments 2018

Leader in sustainability

• 97% of electricity CO2 free

• 11% GDP Growth and 18% CO2 cut since 2010

• Leader in implementing UN Agenda 2030

Stable business infrastructure

• Favorable tax legislation

• AAA credit rating by all major institutes

• Committed EU & WTO member

Source: Business Sweden Analysis

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BUSINESS SWEDEN 5

6 500

8 200

9 100

11 100

12 000

17 000

21 000

22 000

26 000

30 4001

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3

4

5

6

7

8

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Top 10 counties(based on foreign employers)

No. of employees

Västra Götaland 48 800

Stockholm 30 500

Skåne 23 400

Västmanland 10 400

Jönköping 10 100

Östergötland 10 000

Örebro 7 800

Dalarna 7 700

Värmland 7 000

Germany

USA

China

Finland

UK

Norway

Japan

Switzerland

France

Netherlands10

Top 10 countries based on employment

Source: SCB 2019, Business Sweden Analysis Note:*Approximate numbers ** Volvo Cars employ 21,ooo out of the total

Top counties

Foreign owned-manufacturing companies are located across the country but with higher concentration around the three largest regions

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BUSINESS SWEDEN 6

Manufacturing sites in SwedenInteractive map available on our website

“In a global organization you are constantly exposed to

competition both externally and internally”

Lotta Ljungqvist, President and CEO GE Nordic

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BUSINESS SWEDEN

The first step of the site selection process is often time sensitive and with a number of unknownsAvailable and zoned land is a cut-off criteria for most companies in site selection processes

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1

Request for information• The client defines and confirms site needs

and preferred locations• Knockout criteria are set in order to send

an RFI document to selected regions2

Data exchange

• RFI is sent to applicable regions that in turns send out information to municipalities

• Important coordination of questions and gathering of data in the RFI process

• Often lack of all information in this process and short of time

3 RFI Response

• Data is presented to client and commonly returns with more detailed questions

• Site are sorted out quickly by client if not meeting demands

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Lack of information about client and client real requests

Site locations Client

International

Data exchange

Request for information

RFI Response

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2

3

Business Sweden Regions MunicipalitiesLack of information

about Sweden

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BUSINESS SWEDEN

A structural approach and cooperation is key to reach success in investment decisions

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Publicorganisations

Industrial organisations

Municipal representative

Regional representative

Business Sweden in Sweden

Business Sweden in market

Decision maker on Swedish or group level

Network

Delivery team

Client

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BUSINESS SWEDEN

Case example: New establishmentProject Iron

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DECISIONBUSINESS CASEVALIDATIONSCREENING

August• Understanding client needs

• Defining key criteria and timeline

• Engage regional partners

• 1st site search started (August 22nd)

• Long list of 27 sites presented (Sept 1st)

• Short list developed together with client

• First visiting program arranged

• Meeting with key local stakeholders

September

October - November• Support in building business case

• Reports on costs, permits, grants etc.

• Nordic benchmarking

• Connect local service providers

• On site meetings with stakeholders

• Political (local and national) commit.

• Decision support to mgmt. meeting

• Investment decision announced March

December – February

Process, key deliverables and milestones

About the client and project scope• Listed multinational company developing and manufacturing products for the construction industry

• Asked Business Sweden to identify site and facilitate conditions for the construction of a new factory with a total investment sum of ~ €40 millions

• In parallel the client was also evaluating other international locations and needed solid evidence in favor of Sweden to convince group level board

Direct support and engagement from local/regional/national organisations was crucial to the decision!

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BUSINESS SWEDEN 10

Case example: ConsolidationProject Industristrategi

DECISIONVALIDATIONCASE BUILDINGINVOLVEMENT

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April• Municipality contacted Business Sweden to

inform about urgent retention case

• Understanding client needs

• Defining key criteria and timeline

• Comparative study developed

• Key stakeholders identified and involved

• Vison for future operations in Sweden co-

created with R&D partners

May

June-August• Vison and action plan anchored

with partners and decision makers

• Letter of intent with key partner

• High level endorsement meeting

• CEO decision to make Sweden group lead

site

• Downsizing threat never communicated

• 200 direct jobs safeguarded + technology

and research consolidated to Swedish site

September

• Multinational company within the transport industry

• 3 R&D sites in Europe to be consolidated into 1 group lead site for R&D. The Swedish city was one of the sites evaluated

• Project scope: The site management in Sweden needed strategic and hands-on support to build the business case and elevate Sweden’s advantages

About the client and project scope

Process, key deliverables and milestones

Direct support and engagement from local/regional/national organisations was crucial to the decision!

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BUSINESS SWEDEN

Lessons learned

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The value of being a team delivering in a case

Decision makers need our full support to understand and present

the strengths of Sweden

Things can be done to improve a business case regarding an

investment in Sweden

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