Study on the Economic Impact of Maritime Industries in Europe

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European Commission
Maritime Industries Forum 12th Plenary
Session Valencia, 29-30 October 2001
Study on the Economic Impact of Maritime
Industries in Europe
Costas AndropoulosHead of Unit Aerospace,
defence, rail and maritime industries
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Economic Impact of MaritimeIndustries in Europe
Objective of the study
To better understand the global impact of the
maritime industries on the European economy and
its importance for the 15 EU Member States and
Norway.
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Economic Impact of MaritimeIndustries in Europe
Study methodology

• collecting and evaluating available statistical
  data (1993 - 1997)
• Calculation and/or best estimate of total
  economic impact (1997)
• comparison with other transport and industry
  sectors
• Trends and projections for the future (2003)

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Economic Impact of MaritimeIndustries in Europe
Data collection and assessment
ports
marine equipment
shipping
ship- building
inland shipping
10 maritime sectors
maritime services
offshore
yachting
dredging
fishing aquaculture
in 15 EU Member States Norway
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Economic Impact of MaritimeIndustries in Europe
Data collection and assessment

• Indicators for economic importance
• turnover
• value added (direct/indirect)
• employment (direct/indirect)
• backflow to government
• expenditure (consumption investment)

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Economic Impact of MaritimeIndustries in Europe
Data collection and assessment
Problems

• lack of data on various maritime sectors in some
  countries
• low quality
• comparison difficult

Remedies

• use of best estimates to approximate reality

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Economic Impact of MaritimeIndustries in Europe
Main findings (based on available 1997 data
best estimates)
significant direct economic impact

• employment 1.545.000 persons
• turnover 159 bn
• value added (VA) 70 bn (1 of GDP)
• backflow to government 23 bn (33 of VA)
• expenditure (consumption investment)
• in EU Norway 58 bn (83 of VA)
• outside EU Norway 12 bn (17 of VA)

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Economic Impact of MaritimeIndustries in Europe
Main findings (based on available 1997 data
best estimates)
considerable total economic impact
Direct
Indirect
Total
847.000
2.392.000
Employment
1.545.000
41 bn
111 bn
Value
added
70
bn
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Economic Impact of MaritimeIndustries in Europe
Main findings (based on available 1997 data
best estimates)
largest maritime sectors
In terms of turnover value added

• Shipping 47,9 bn 15,5 bn
• Ports related services 22,3 bn 15,2 bn
• Marine equipment 22,3 bn 9,3 bn
• Shipbuilding repair 19,3 bn 6,7 bn

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Economic Impact of MaritimeIndustries in Europe
Main findings (based on available 1997 data
best estimates)
largest maritime sectors
In terms of employment (direct / total)

• Shipping 300.000/607.000
• Fishing aquaculture 295.000/368.000
• marine equipment 262.200/436.000
• Ports related services 217.500/318.000

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Economic Impact of MaritimeIndustries in Europe
Countries relative share in total value
addedby maritime industries in EU Norway
Germany
14
Italy
11
15
United Kingdom
Norway
11
Portugal
1
Ireland
1
3
Finland
France
10
Greece
3
Sweden
3
Belgium
5
Netherlands
10
Spain
6
Denmark
7
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Economic Impact of MaritimeIndustries in Europe
comparison with other transport modes
Main findings
Shipping ports constitute about 10 of the EU
transport sector
Output(mio EUR)
Value added (mio EUR)
Employment(x 1000)
Transport related services
505,0
272,4
4.898
of which Maritime sectors
64,7 12.8
30,0 11
450 9.2
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Economic Impact of MaritimeIndustries in Europe
comparison with other transport modes
Main findings
Shipbuilding repair, and recreational craft
account for 5 of transport equipment industry
Output(mio EUR)
Value added (mio EUR)
Employment(x 1000)
Transport equipment
453,1
131,6
2.694
of which Maritime sectors
19,5 4,3
6,9 5,3
154 5,7
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Economic Impact of MaritimeIndustries in Europe
comparison with other industry sectors
Main findings
High export orientation for shipbuilding marine
equipment
Ship-building
Transportequipment
marineequipment
Metal products machines
Wholeeconomy
Export as of output
Average 1993-1998
1995
1997
1995
1995
58
45
46
39
EU
14
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Economic Impact of MaritimeIndustries in Europe
Expected future trends
(based on available 1997 data best estimates)
average annual growth rates up to 2003
Production
Value added
Employment
Shipping
2.00
1.00
0.25
3.00
2.00
0.50
Ports
Marine equipment
2.50
1.50
1.00
Shipbuilding
1.00
0.50
-0.25
1.00
Offshore
2.50
2.00
0.50
Dredging
1.50
1.25
0.00
Fishing
2.00
1.50
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Economic Impact of MaritimeIndustries in Europe
Conclusions

• the study results
• demonstrate the significant economic impact of
  the maritime industries in Europe,
• are probably an underestimation of the real
  situation
• the availability and quality of statistical data
  is too limited to support accurate policy-making
• for more accurate insights by country or by
  sector, bottom-up data gathering may be required
  (e.g. Dutch Maritime Cluster)

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Economic Impact of MaritimeIndustries in Europe
Full study report is available on the EUROPA Web
site
http//europa.eu.int/comm/enterprise/maritime