Engineering & Tooling Industry
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1 Engineering & Tooling Industry 2013
2 Content Portugal Portuguese Engineering & Tooling Industry aicep Portugal Global 2
3 PORTUGAL IS A BUSINESS OPPORTUNITY Why choose Portugal?
4 Strategic location Portugal is the European nearest country to the U.S. 3-hour distance between Brazil and Russia. Same time as UK and Ireland. Attractive Consumer Market Portugal 10,6 Iberian Market 51 European Market 494 Portuguese Speaking countries 220 Million Inhabitants Great and privilege economic relations between Portugal and Brazil, Angola and Mozambique. Daily flights to major European cities. Why choose Portugal?
5 Qualified Workforce Flexible labour law High-standard education Wide availability Partnerships with world-class US institutions 71,7% 42% At least 1 language 6% At least 3 languages 23% At least 2 languages Portugal has a highly skilled and educated workforce. Portugal ranks on Top within the EU countries in number of PhDs per 1,000 inhabitants. 40% of students in tertiary education are enrolled in engineering, sciences and health. The increase rate in the last 3 years is about 30%. Portuguese are known for commitment to work which places us below the EU average regarding working days lost per year. Language skills: English, French and Spanish are the most spoken languages. English is universally taught from 1 st grade. 43,6 11,3 Working Days Lost (per employees EIRO, ) Why choose Portugal?
6 Competitive Costs Portugal is still cost competitive according to international recognized sources. There was a decrease of -1,2% in hourly labour costs in 2012 Q1 (Euro 27 rose by +2,0%). In terms of real estate industrial space - and within 53 countries/cities worldwide, Portugal/Lisbon is the 8 th less expensive location. Portugal also has one of the lowest monthly minimum wage in Europe (485 ). 12,4 11,4 4,0 3,4 +1,5 1, ,2 Electricity (Prices for industries in /100kWh Eurostat 2012 S1) Natural Gas (Prices for industries, in /GJ Eurostat 2012 S1) Labour Cost Index (Year-on-year rate of change Eurostat 2012 Q1) Cost of Living (HFC Eurostat) Why choose Portugal?
7 Technological Infrastructures 0,72 0,38 FULLY DIGITALIZED Telecom Prices Euro/10 min call Eurostat 2010 The percentage of fiber connections in total broadband is already 6% for Portugal, ahead of countries such as Netherlands, Finland, France, Spain, Italy, Poland, Austria Germany or Belgium. The Internet is also well developed. Portugal is a United Nations case study in terms of e-government and its availability of public services on-line. Telecommunications have been a major priority in Portugal. The country has now 95% coverage of broadband infrastructures. The net increase in the broadband penetration growth for Portugal is above the OECD average (Dec 2010). Why choose Portugal?
8 Office Space available Portugal offers a dynamic real estate market. High quality space, well designed and energy efficiency oriented has boomed and rent prices are competitive comparing the other European countries. Office space Industrial space 123,5 79,2 52,2 Portugal is ahead of countries such as France and Spain in terms o cost. The figures are shown for Lisbon. If we considered Porto area, prices can lower 25%. Occupancy cost, in /sqm/year, C&W2013 Occupancy cost, in /sqm/year, C&W2011 Why choose Portugal?
9 Business friendly environment MULTI-CULTURAL EASE OF DOING BUSINESS Major public services are on-line; Portugal is considered by the United Nations, a case study in e- Government; Average time to set up a firm is less than 1-hour Portugal is very open to foreign cultures: the availability of international schools, the safety record and quality of life attract expatriates. As a result Portugal is ranked #2 in the Migrant Integration Policy Index Portugal is unique in attracting young graduates and executives. Carlos Brazão, Cisco Portugal Why choose Portugal?
10 They chose us SERVICES MANUFACTURING Our decision is a result of the recognition of the hospitality and the commitment of the Portuguese Government, of the multilingual skills of the local population as well as its professionalism and ability, and proven success in innovation areas. Chris Dedicoat, Senior Vice-President for Europe, Cisco One of our main strategic lines was always to shorten distances with the academic world and to bet in strong innovation, investigation and development in Portugal thus taking advantage of the Portuguese engineer s excellence. João Picoto, Chairman of Nokia Siemens Networks Portugal Why choose Portugal?
11 Portuguese Engineering & Tooling Industry
12 Engineering & Tooling Industry Brief Overview PORTUGUESE ENGINEERING & TOOLING FOR AERONAUTICS Key Figures Nº Companies (2011) 700 Turnover (2010) Exports (2011-Millions ) World s Portugal share (2011) Moulds 3.1% Moulds for plastic and rubber 4.3% Portuguese ranking as world supplier (2011) 10 th Ranking in main export market (DE) 6 th Exports (2012 Millions ) Weight in Portuguese exports (2012) 1.1% Source: INE - Statistics of Portugal
13 Millions of Euros Engineering & Tooling Industry Trade: Sustainable positive balance PORTUGUESE ENGINEERING AND TOOLING FOR AUTOMOTIVE Exports: Average annual growth rate : 6,9% Growth rate in 2012: 35,2% The trade balance is largely positive with a coverage ratio of around 486% in Source: INE, February Exports Imports Balance
14 Engineering & Tooling Industry Main Products PORTUGUESE ENGINEERING & TOOLING FOR MEDICAL DEVICES Moulds for the plastics industry constitute, almost entirely, the sector s output and exports. According to CEFAMOL, the National Association of the Mould Industry, the automotive industry is the primary customer, absorbing 72% of production, followed by household appliances (6%) and packaging (5%). Other moulds for plastics 5% Moulds for glass 3% Moulds for plastic injection or compression 83% Source: INE, values refer 2012, February 2013 Moulds for metal 5% Moulding patterns 3% Other moulds for plastics 1% Portuguese exports per activity
15 Engineering & Tooling Industry Main Markets PORTUGUESE ENGINEERING & TOOLING FOR ENERGY & ENVIRONMENT Germany, Spain and France are the main customers of Portuguese moulds (responsible for 20.5%, 20.4% and 17.3%, respectively, of total exports). In these markets, shipments increase, respectively, by 16.9%, 45.6% and 37.4% in Shipments also swelled by double digits to Brazil, Poland, UK, Russia, Switzerland, Netherlands and Austria and increase 208% to Czech Republic and 535% to Argentina. 17.3% 20.4% Portuguese main Customers 20.5% Source: INE, values refer 2012, February 2013
16 Engineering & Tooling Industry 15 Main exporters in Main Portuguese exporters Other players Source: INE, CEFAMOL
17 Engineering & Tooling Industry Our strength lies in integrating processes The Portuguese companies provide a fully integrated service: The concept and design of new products Product engineering and development Prototyping Material selection Mould production Testing and manufacturing services Source: CEFAMOL - Engineering & Tooling from Portugal
18 Engineering & Tooling Industry and partnership Manufacturers who have found partners in Portuguese companies, benefit daily from the expertise and integrated services tooling firms provide The advantages that result from such partnership include: Reduced time to market Reduced costs Innovative solutions Products designed for maximum manufacturing efficiency Optimum material selection foe reliability, cost and quality Trouble-free, cost efficient injection over long periods Supportive partnerships from product design to the end of a manufacturing run Source: CEFAMOL - Engineering & Tooling from Portugal
19 Engineering & Tooling Industry The cluster The Portuguese Engineering & Tooling Cluster has the following main goals: To place Engineering & Tooling industry in TOP 5 at worldwide level; To assure at least a 2% production value growing by year (in Euro currency) on mouldmaking area. To assure high revenue levels for mouldmaking and high precision machining companies. To reach 30 new technological companies on Engineering & Tooling area. To reach high recognition levels of the brand Engineering & Tooling from Portugal, at national and international level. Pool-net Association is the entity responsible for boosting the Cluster. Ongoing projects include strategic areas such as as: internationalization, technology and expertise and intervention in the intangible factors of competitiveness. More at:
20 Engineering & Tooling Industry Main Bodies Industry Association Technological Center for the Moulds Industry INEGI UNINOVA Entity responsible for boosting the Portuguese Engineering & Tooling Cluster. University of Minho - Department of Polymer Engineering R&D Organizations IPL - CDRsp Center for Rapid and Sustainable Product Development IST Department of Polymer Engineering Department of Mechanical
21 aicep Portugal Global
22 aicep Portugal Global Who are we? We are a Business Development Agency, focused on the development of a competitive business environment that contributes to the international expansion of the Portuguese Economy. Mission Increasing the country s competitiveness, promoting large private investment and fostering the internationalization of Portuguese companies. Values Focus on clients. We serve our clients in accordance to their requirements through various solutions and long-term relationships. Selectiveness. We direct our activity towards projects and markets that make a better contribution to company competitiveness and the sustainability of the Portuguese economy. Excellence. We seek to exceed expectations by means of a rigorous approach, effectiveness, enthusiasm and a willingness to innovate.
23 About Us aicep Portugal Global: how can we help you? Pre- Investment Incentives Negotiation Settling In After Care Single point of contact in all phases: preinvestment, incentives negotiation, settling in and after care Dynamic approach focused on the client or investor Promoting a direct negotiation with companies, through which a tailored approach to incentives may be applied in order to define a global package that fully satisfies the investor's needs Government business entity, flexible, free of charges and streamlined services
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