Has the Swedish manufacturing industry peaked?
This newsletter based upon the Industrial Report 208/2019, shows that for the third year in a row, the sales increase for the manufacturing companies in West Sweden. The economy continues to expand, and primarily large companies with high exports benefit from high global demand and the weak Swedish currency. In line with last year’s results, the sales figures for West Sweden Large Caps increased more compared to corresponding companies for Sweden as a whole.
Moreover, the report shows that the number of employees has continued to increase in West Sweden, primarily in the West Sweden Large Caps, where one reason is the increased capacity demand. The continuous growth has led to challenges in finding the right competence. The lack of relevant skills is one of the contributing factors for increased salaries seen in the manufacturing industry.
The manufacturing companies in West Sweden have made strong results for a longer period and the forecasts over the last three years have been positive. However, the survey results from this year's report show a clear change in trend. Among the respondent companies 57% state that they will see equal or reduced sales for 2019, to be compared with 29% answering the same previous year. Has the Swedish manufacturing industry peaked?
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