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Download (15Mb) - The EC metal products sector covers a wide range of products and consists of a large number of small and medium-sized firms. Since it mainly produces intermediate and investment commodities for other manufacturing industries, the sector was badly affected by the industrial crisis in the early 1980s. The restructuring which followed was accompanied by major job cuts and gave rise to improved productivity. As a result, from 1987 onwards, metal product manufacturers were able to profit from the growth experienced in the -....,ca various industrial client sectors. It was not until Q) 1988 however, that for the first time in nine years real ~ output exceeded its 1980 levels. In 1989, output grew by 12°/o compared with 1988. Although the industry is a net exporter, external trade does not account for a large share of the market. Furthermore, intra-EC trade accounts for only a small share of production. The importance of the growth rate (13.8% per year from 1980 to industry in the EC 1989, as against 5.7% in the EC over the economy same period). Current situation The production of met- Production and consumption Metal al products within the EC (NACE 31) con- products are basically intermediate com- stitutes one of the main sectors in the metal modities and, to a lesser extent, investment manufacturing industry. With output amount- commodities. On average, final consumption ing to approximately 163 billion ECU in does not account for more than 10% of total 1989, the industry accounts for nearly 7% of demand. Among the industry's main clients the EC manufacturing industry. The workforce one finds: which it employs, i.e. 2.2 million people, is •:• transportation equipment (forged products larger, for example, than in the carmaking or etc.); chemicals sector. •:• mechanical engineering (tools, etc.); The European Community is the leading •:• construction (constructional steel work). world producer of metal products, followed These sectors performed rather poorly dur- closely by the United States and Japan. ing the first half of the 1980s, thus explain- The latter, however, has the highest ing the crisis which affected the metal p A M A 9-1 Table 1 Metal products Main indicators, 1980-89 products industry over the same period. imports only accounted for around 5% of do- Both of these countries export roughly 12% The recent recovery in EC industry has mestic consumption. The imports/exports of their output and are less competitive than triggered an upturn in the metal products cover ratio, however, has fallen constantly the previous two countries. market, which following a period of low since 1982. Imports are increasing at a faster Employment The drop in demand which constant growth between 1984 and 1987, rate than exports. This deterioration in the characterised the early 1980s had serious grew by 11.7% in 1988 and 12.7% in 1989. trade balance is partly due to the role played repercussions on employment. Between Output followed the same pattern and in by new producer countries such as South- 1980 and 1987, for example, the number of 1989 stood at 163.2 billion ECU (12.2% East Asia, Argentina, Brazil, Mexico or India jobs decreased by 14%, from 2,467,000 in up on 1988). Almost every EC country re- in international trade. Trade is also increasing 1980 to 2,123,000 in 1987. Employment le- corded an increase in output in 1989. between developing countries, with North vels have since stabilised and even rose External trade The metal products sec- Africa and East Asia exporting to southern slightly in 1989 (2, 166,000). West Germany tor accounts for only 3% of world exports countries. The EFTA countries are the EC's accounts for 35% of the total number em- and ranks fifteenth in the list of exporting sec- main clients (35% of exports); they are also ployed in the industry within the EC, followed tors. The EC metal products industry is con- the EC's leading suppliers (42%), followed by by France (17%) and Italy (1 0%). centrated on the EC internal market. lntra-EC the United States (18%). Within the EC, Italy Productivity Productivity in the EC metal trade accounted for 11% of production in and Germany have the highest export rates, products industry improved significantly be­ 1989, and grew by 16.5% compared with with 83% and 22% of output respectively. tween 1980 and 1989, despite a very low 1988. In 1989, only 8% of total output was France and the United Kingdom, on the other rate of growth in output, thus confirming the exported to non-EC countries and extra-EC hand, are suffering from a structural deficit. effect of restructuring. The improvement was aimed at three Figure 1 Metal products basic aspects of the industry's competitive- EC output compared with that of the United states and Japan 1980-88 ness: raw materials, labour and energy, (million ECU) mainly through the introduction of robotisa- 160000 tion and the mechanisation of the various 140000 processes. 120000 100000 Productivity levels in the metal products in- 80000 dustry are slightly lower than in the other 60000 metal-working sectors. Nevertheless, pro- 40000 ductivity levels since 1980 have followed a 20000 similar pattern to those observed in all the 0 1980 1989 other metal-working industries. EC United States • Japan Investment Following a decline in 1981 and 1982, investment gradually re- Source: Eurostat, DRI Europe p A M A 9-2 covered in subsequent years. In 1988, it Figure 2 reached an estimated 5,658 million ECU, i.e. Metal products Trend in EC output and exports (non EC) a 44% increase in value since 1980 (except index (1985 =100) 140 --- ---~--------------------- for Spain). The investment rate (investment 130 divided by turnover) in 1988, however, was al- 120 most the same (3.9%) as that recorded in 1980 (4%). Investment was higher in West 110 Germany and Italy, both export-orientated 100 countries. 90 Structure of the industry 80 ----- The EC metal products industry is com­ 70 posed of a large number of firms (roughly 60 40,000), mainly small or medium-sized, 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 manufacturing a whole range of different • Output • Exports products. NACE 31 includes: •:• 311 : foundries •:• 316: the manufacture of tools and finished The relative importance of the different •:• 312: forging, drop forging, closed die-for- metal goods except for electrical ap- sub-sectors varies considerably (see table ging, pressing and stamping pliances (including, among others, hand 7). In terms of output and the number of •:• 313: secondary transformation, treatment tools, metal boxes, domestic heating ap- people employed, the manufacture of tools and coating of metals pliances, kitchen appliances, metal furni- and finished metal goods accounts for •:• 314: the manufacture of structural metal ture, etc.). 37% of metal products as a whole, fol- products (including integrated assembly •:• 319: other workshops working metals not lowed by secondary transformation (around and installation) listed elsewhere. 16%) and the manufacture of structural •:• 315: boilermaking, the manufacture of The product range varies from nuts and metal products (14%). reservoirs, tanks and other sheet-metal bolts to metal packaging and metal furni- The metal products industry features a containers ture with castings. large number of small firms. The average Table 2 Metal products Production, international comparison (miiJkm ECu) 1980 . .1981 1912 1983- 1984 1985 1986 1987 1988 1989 Production in current prices EC .. 9$154 102039- .· 107427 109427 117520 124467 127577 131 725 145 511 163296 Index ,79 82 86 sa 94 100 102 106 117 131 USA (tl . ... 9353$' 123..293 131773 148595 189315 199-874 155032 136234 141 865 {2)145 000 Index 47" ·.. 62 66 74 95 100 78 68 71 72 Japan(') -._ 34137" 46306 . 46-933. 55628 64657 74998 79608 81989 101 004 109 133 Index 46. < 62. 63 74 86 100 '106 109 135 146 EC ·production. in ~onstant pnces· 132.871" 1.28763 123 783- 120804 122241 124467 127196 130863 139 289 f)145 800 Index. 107 . 103 99 91 98 100 102 105 112 117 (i) CenswQf Mmwf~,and Euroatat-~ (U)Mtlmates SQurce: ·Eurott.at (ind'e) p A M A 9-3 Table 3 Metal products EC trade in current value (mltlon IOU) 1980 1981 1tn 1983 1984 1985 1986 1987 1988 -,'' Ex(JOIU extra-EQ (1) 9458 11314 1'2 959 12735 13191 13652 12345 11837 11 $60 13$27 Jooex.r> , 68 f17 9$·' 93 97 100 S9 as· 87 100. -~mPOrts-~tra~ec (1r · 3285 3441 S718 a&28 4479 48,09 4642 5100 6146 12$6 tnd&K (i) 68 72 77 82 93 100 104 114 128 151 XIM· 2.88 -3.43 3.49 '3.24 2~95 2.84 2.66 2.32' 1.93 1.88. Tratte· intra.;.EC (1} 7528 764s 8267 8100 9103 1Q$79 12 79'6 13754. '16101 18761 ·· .Jndex (~) · 70 70 76 eo 89 tOO '109 111 148 . 172, ·~a~e·_ot to~(%) (1) 1980 8»: 1981*$5 EC10 . ·. , . f) Taking Into· aQ¢ount (~flanges iii E.Q: meirtb$i'$hfp SOur~ ORGALJME, Eurastat (eotn.xf) ' number of employees per firm was esti- France, Italy and the United Kingdom. West Germany is both the EC's largest mated at 50 in 1988. The Eurostat figures If we add Spain to the list, 91% of output producer (35% of EC output) and the most for 1983 illustrate this structure, although comes from just five countries. highly specialised country. Next follows according to more recent information from The distribution by country is illustrated in France (20%) and the United Kingdom a number of different countries, the proper- table 9.
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