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Why is the Swedish manufacturing declining?

Both as a share of the GDP and Annual decline

Model T Ford
post 21.Aug.2013, 03:56 PM
Post #16
Joined: 31.May.2013

I shall add my two cents: posters seem to be overlooking increasing vertical integration in the world's, particularly in Sweden's, economy.

Seems many companies are trying to integrate up and down the line what they can do rather than increasingly control one or a few lines of production.

Take giant Atlas Copco which employs 40,000 people worldwide, and has bought the Edwards vacuuming group in England to complement what it already does in mining, construction, etc.

Single horizontal giants are just too unstable in today's market, and Swedish manufacturers are taking the lead in apparent diversification, a process which makes it harder to determine what the overall state of the economy, particularly manufacturing, is.
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Bender B Rodriquez
post 21.Aug.2013, 06:40 PM
Post #17
Joined: 25.Mar.2006

QUOTE (Ivor stephé @ 21.Aug.2013, 04:13 PM) *
Why are so many of you trying to discredit articles relating to the manufacturing decline?If you really wish to discredit it, post up articles of references showing growth in ... (show full quote)

I don't think anyone is trying to discredit the articles. Traditional manufacturing IS declining all over the developed world, including Sweden. What myself and other posters are pointing out is that exports are shifting from manufactured goods to exports of other high-tech products and services.
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green_sweden
post 29.Aug.2013, 04:05 PM
Post #18
Joined: 23.Aug.2012

Wow, i am delighted by all the replies, thank you for all your answers, I have been too busy the last 10 days, now I have some time reply.

QUOTE (skogsbo @ 17.Aug.2013, 12:07 PM) *
Struggling for a thesis topic?Firstly which part of manufacturing has declined? All? or specific fields like electronics or heavy metal, car..? Which parts of the world have g ... (show full quote)

Thank you, your answer opened my eyes to many corners of the topic. Yes, It is true, manufacturing in all industrial countries, even China, Germany... has declined as well due to the global economic crisis. Also, It is true, the rise of the service Industry has truly caused a decline in the % of the Primary Industry added value to the GDP, even if the Primary Industry total added value in $ has not declined.
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green_sweden
post 29.Aug.2013, 04:22 PM
Post #19
Joined: 23.Aug.2012

On the other hand, as many have posted in their replies, this does not mean that manufacturing is not actually declining in a faster pace than the rest of the industrial world, I do believe that Swedish companies migrating their factories to cheap labor market is actually having a high impact industrial output of Sweden and unemployment in Sweden.

QUOTE (intrepidfox @ 17.Aug.2013, 08:53 PM) *
Before the EU referendum in 1994 the so called idiots that rule this country stated that if we went into EU then companies would invest in Sweden. Totally wrong. Companies can ... (show full quote)

+1

QUOTE (trumanshow @ 19.Aug.2013, 04:35 PM) *
I run a small software development company and it makes absolutely no sense to employ Swedish contractors if i need help. Even smalltime developers feel it necessary to move i ... (show full quote)

+1
QUOTE (Ivor stephé @ 20.Aug.2013, 08:34 AM) *
Which big companies do still exist in Sweden today?. Saab has died, Orrefors has or is moving shop.. As sweden continues to loose its grip on many areas of manufacturing.

+1

QUOTE (skogsbo @ 20.Aug.2013, 07:51 PM) *
Which China and India etc reach a high standard of living and wish to outsource themselves, it won't be to here, unless our living conditions have crashed. It will be to A ... (show full quote)

There are still many extremely poor asian countries like Myanmar, Bangladish, Philippines... but eventually, yes, Africa is the future Cheap Labor market
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dott
post 8.Sep.2013, 12:06 PM
Post #20
Joined: 18.Jun.2011

QUOTE (green_sweden @ 29.Aug.2013, 04:22 PM) *
Africa is the future Cheap Labor market

Don't think so. It requires good education of the ppl, willingness to work and political/economical stability. None of these has Africa.
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AgeOfReason
post 9.Sep.2013, 09:33 AM
Post #21
Location: Stockholm
Joined: 1.Sep.2013

You should read the economic news. Many african countries are experiencing good economic growth, there are more and more companies moving manufacturing into africa, it has been the planned destination after China for many years.

China labour costs have risen substancially during the last couple of decades. Labour intensive manufacturing requires a few primary things, infrastructure, plentiful cheap labour, cheap reliable raw materials supply. Education is not in that picture! Polical stability comes from corruption and arming the strongest side, stability can be created by the right parties.

China has been building the infrastructure in many African nations for ages now, this is where the western economies always went wrong, they seemed to hold the continent back by helping with aid whilst sucking out the minerals etc... where-as China has been more subtle, it is sucking out the minerals but also building the infrastructure, making a lot of local politicians wealthy, and their economies have a false growth, but growth non-the-less.

For Europe, it is eastern europe though that starts to get expensive quickly, once the former soviet states becomes more stable and a bit less corrput, you will find more and more companies moving manufacturing in that direction to take advantage of the huge raw materials availability (just now it is unreliable sources), and very cheap labour availability.
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*Guest*
post 22.Jan.2014, 05:26 PM
Post #22


Has anyone considered that the population in the Industrial world is aging?
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jostein
post 27.Feb.2014, 06:29 PM
Post #23
Joined: 22.Mar.2011

Life aint "nice". Lickwittles, like social democrats and other socialists, that try to make life "nice"* create death, misery and destruction.
Remove the monstrosity the social democrats created and manufacturing returns.

*obviously, all political types only try to make life nice for number one. But in their rethorics and in their method of confiscating everyones money they pretend to try to make life "nice" for everyone.
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xtenzion2
post 6.Mar.2014, 03:20 AM
Post #24
Joined: 27.Aug.2013

Manufacturing is declining in many western countries.

The only country I know of that manufacturing is increasing is Germany, that is because they are more competetive, it's cheaper to produce goods there because lower taxes, less regulations and weaker unions.

Australia where I live we have big time decline in manufacturing as well.
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Gamla Hälsingebock
post 6.Mar.2014, 04:09 AM
Post #25
Joined: 21.Dec.2006

Manufacturing anywhere in the first world is declining...hands on labor is the key to it all...first world unionism and standards of labour have caused a dramatic shift to developing countries who pay a lot less for labour...everybody knows that...but the end result lies in robotics...where will we/everybody be then???
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