(edit title) Why is the Swedish manufacturing declining? Both as a share of the GDP and Annual decline Options

[Model T Ford]

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.

[Bender B Rodriquez]

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)

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 this area instead.

Otherwise it just sounds like wild christian science justification in regards to why we shouldnt be allowed to talk about it. ... (hide 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.

[green_sweden]

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.

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)

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 grown etc. ? there is your answer or at least the beginning of it!

How is decline related to other EU nations of similar size, or EU average? Or even Western average?

Even China has slumped for the past few years, so some decline can hardly be considered abnormal.

What about the West's progressive shift towards service industry? Is Sweden faster or slower than other nations in this.

There you go, there is enough there for a few million words, never mind just a few thousand. ... (hide 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.

[green_sweden]

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.

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)

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 get cheaper workers abroad and cut down their costs thus they leave the counrty which means less manufacture ... (hide full quote)

+1

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)

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 in to Swanky offices as soon as some local quango has backed them with 50000SEK. ... (hide full quote)

+1

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

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)

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 Africa and S/central America.. ... (hide full quote)

There are still many extremely poor asian countries like Myanmar, Bangladish, Philippines... but eventually, yes, Africa is the future Cheap Labor market

[dott]

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.

[AgeOfReason]

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.

[*Guest*]

Has anyone considered that the population in the Industrial world is aging?

[jostein]

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.

[xtenzion2]

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.

[Gamla Hälsingebock]

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???