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GREEN, SMART & INNOVA TIVE ECONOMY INDUSTRIAL PROFILE MUNICIPALITY OF GABROVO 2020 2 TABLE OF CONTENTS Key Indicators ...................................................................................... 4 ECONOMY Gabrovo’s Dynamic Economy ............................................................. 5 The Shift Towards Higher Added Value ............................................ 7 1 Leading Industries in Gabrovo .......................................................... 8 Local Entrepreneurs and New Investments ..................................... 10 HUMAN CAPITAL Human Capital in Gabrovo ................................................................ 13 Productivity and Wages Growth ....................................................... 15 2 Gabrovo – City of Talents and Applied Sciences .............................. 16 TECHNOLOGY AND INDUSTRY Gabrovo Smart Specialization ........................................................... 19 Industrial Future in the Heart of Bulgaria ....................................... 21 3 Technical University of Gabrovo Tech Park ...................................... 23 CULTURE AND TRADITION Gabrovo – Capital of Humour and Satire ......................................... 25 City of Unique Museums .................................................................... 26 4 Culture amidst Nature ....................................................................... 27 Traditions in Education and Science ................................................. 28 PAST AND FUTURE History Meets Innovations ................................................................ 29 Gabrovo Innovation Camp ................................................................. 31 5 Gabrovo Investment Map .................................................................. 32 Gabrovo Business Environment ........................................................ 34 ECONOMY KEY INDICATORS 107 000 28% 3 669 POPULATION WORKING-AGE STUDENTS IN TECHNI- District of Gabrovo POPULATION WITH CAL UNIVERSITY OF /2019/ UNIVERSITY DEGREE GABROVO District of Gabrovo /2018/ Municipality of Gabrovo /2019/ 13 510 BGN 2,5 bln BGN 662 mln BGN GDP PER TOTAL CUMULATIVE CAPITA PRODUCTION FOREIGN DIRECT District of Gabrovo VALUE INVESTMENTS /2018/ District of District of Gabrovo /2018/ Gabrovo /2018/ 70% 1036 BGN >10% EMPLOYMENT СAVERAGE WAGE WAGE GROWTH SHARE Municipality Municipality of Gabrovo (15-64 YEARS) of Gabrovo /2019/ /2018/ 2019/ District of Gabrovo /2019/ INDUSTRIAL PROFILE MUNICIPALITY OF GABROVO 2020 4 ECONOMY GABROVO’S DYNAMIC 1 ECONOMY Gabrovo is among the district centres in Bulgaria with very well-defined industrial profile. Traditionally, the manufacturing has had more than 60% share of the over- all production value in the city. Half of the employed in the private sector, as well as more than half of the value added in the local economy are concentrated in the pro- PRODUCTION cessing industry. VALUE In 2018 the enterprises in the municipality of Gabrovo had a /2018/ total production value of 1 bln BGN, while the share of the manufacturing reached 630 mln BGN. For the last two years /2016 - 2018/ the growth of production value was above 2,5 bln BGN 16%, which is a reflection of the positive dynamics in the lo- cal economy. More than 2/3 of the growth in production for Gabrovo the above mentioned period is а consequence of the expan- District sion of the processing industry. The other sector, though still small in size, of the local economy that has been perform- ing well in the past years is Information Technology Services, 1 bln BGN which has grown 2,6 times in two years. Gabrovo The region, in terms of geography, is compact, and Gabrovo Municipality and Sevlievo comprise more than 90% of the district’s econ- omy. The overall production value in the district reached 2,5 bln BGN in 2018, of which 1,6 bln BGN was created by the in- dustry, turning the region in one of the most important eco- nomic centres in Bulgaria. INDUSTRIAL PROFILE MUNICIPALITY OF GABROVO 2020 5 ECONOMY MUNICIPALITY OF GABROVO The GDP per capita for 2018 in the district of Gabrovo is 13 510 BGN, which is higher compared to other economic centres in INDUSTRIAL PROFILE the region, such as Veliko Tarnovo and Ruse. GDP per capita in MANUFACTURING the district of Gabrovo had been gradually catching up to the national average in the past five years. In terms of local eco- 60% of nomic development, Gabrovo ranks in country’s top 3 and is a the economy local leader in GDP per capita growth. /2018/ GDP per capita Growth in the past 5 District /2018/ years /2013-2018/ MOST DYNAMIC SECTOR Gabrovo 13 510 BGN +51% INFORMATION Plovdiv 13 141 BGN +41% TECHNOLOGY SERVICES Ruse 11 769 BGN +33% 2,6 times growth Veliko Tarnovo 10 434 BGN +35% /2016-2018/ Bulgaria 15 615 BGN +38% Source: NSI data INDUSTRIAL PROFILE MUNICIPALITY OF GABROVO 2020 6 ECONOMY pality nici Mu o THE SHIFT ov r b 13% a G 2% TOWARDS HIGHER 2% 23% 5% garia ul B 36% ADDED VALUE 4% % 10 6% 61% 9% 9% 14% The share of the processing industry in Municipality of Ga- 7% brovo is almost twice as high compared to the country av- erage. On the other hand, one third of manufacturing is concentrated into the production of machinery, equipment SHARES OF and metal products, which are the sectors with the high- ECONOMIC SECTORS est added value per one employed person. Even though BY OUTPUT they are small relative to the economy as a whole, the /2018/ most dynamic sectors are information technology and services and professional activities. Their total added val- Manufacturing Construction Trade Information Technology ue in those fields has tripled in the last 5 years and today and Services ИКТ Proffesional is comparable with the added value in construction and Activities Other transport businesses combined. Source: NSI data ADDED VALUE PER EMPLOYEE IN The shift of the local econ- MANUFACTURING /BGN/ omy towards economic ac- Source: IME based on NSI data tivities with higher added value is clearly visible. For the last five years the added 30000 value per employed person 25,474 has grown by 50%, reaching 25000 24,699 22,018 25 000 BGN per employee 20000 19,720 19,961 17,150 in the local enterprises. This 15000 determines the constant in- crease in wages, which have 10000 an average annual growth 5000 of 10% for the 2013-2018 pe- 0 riod, and this trend has con- 2013 2014 2015 2016 2017 2018 tinued in 2019. INDUSTRIAL PROFILE MUNICIPALITY OF GABROVO 2020 7 ECONOMY LEADING INDUSTRIES IN GABROVO The processing industry in Gabrovo is concentrated into five large groups. The output of the production of machinery, equipment and metal tools comprises 37% of the total pro- duction value and 40% of the employed in industry. A tradi- tionally well – developed branch is the textile production with MACHINERY AND 31% of the total production value and 29% of the employees. ARTICLES OF METAL Two other leading sectors, each with about 12% share in the overall processing industry, are rubber and plastics and 37% share food production. The production of wood products and fur- of the processing niture comprises about 6% of the industry. industry /2018/ Municipality of Gabrovo Processing in- Share of produc- Number of per- Added value per person Share of exported dustry breakdown /2018/ tion value /%/ sons employed employed /BGN/ production /%/ Total industry 100 8 582 25 174 ≈55% Machinery and metal products 37% 3 471 32 095 ≈65% Metal products 22% 2 542 29 556 ≈65% Machinery and equipment 12% 650 44 000 ≈65% Electricalequipment 3% 279 27 487 ≈60% Textile and clothing 31% 2 449 20 176 ≈80% Rubber and plastics 12% 899 24 773 ≈20% Food and beverages 12% 847 20 653 ≈5% Furniture and wooden products 6% 707 19 260 ≈30% Furniture 4% 474 18 559 ≈50% Wooden products 3% 233 20 687 ≈5% Chemical products 2% 209 8 842 ≈50% Source: IME based on NSI data INDUSTRIAL PROFILE MUNICIPALITY OF GABROVO 2020 8 ECONOMY The leading industrial sectors in Gabrovo’s local economy are those with higher value added. The average added val- ue per person employed in the production of machinery, equipment and metal products for 2018 was 32 095 BGN. Machinery production was the sector with the highest add- ed value – an average of 44 000 BGN per person employed 44 000 BGN in 2018, almost double compared to all other industries VALUE ADDED PER such as production of textile and clothing, food and bever- EMPLOYEE IN MECHA- ages, furniture etc. NICAL ENGINEERING Gabrovo’s industry is highly export oriented – more than 50% /2018/ of the production is designated to foreign markets. Near- ly 2/3 of machinery and equipment production – the sector with highest added value – is exported. As much as 80% of Over 50% the production of textile and clothing is exported. This is the OF THE PRODUCT sector with highly positive export dynamics for the last year. IN THE PROCESSING Only the production of food and beverages is entirely fo- INDUSTRY IS EXPORTED cused on the internal market. /2018/ INDUSTRIAL PROFILE MUNICIPALITY OF GABROVO 2020 9 ECONOMY LOCAL ENTREPRENEURS AND NEW INVESTMENTS LARGE INDUSTRIAL ENTERPRISES Enterprises with more than 50 employees in 5 leading sectors Companies by number of employees Metals and metal products Steel casting, Metal processing, Manufacturing of tools, Manufacturing of components for hunting and sports weapons 51-100 employed 101-250 employees 250+ employees 2 companies 3 companies 3 companies Machinery, equipment and facilities Machinery, equipment and facilities, Manufacturing of lifting and handling equipment, Specialized machinery, Electrical
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