Sad trends news gain. Finnish electronics exports collapse continues.
Finnish electronics exports shrank in the last quarter of 2012. This is largely due the fact that Nokia miracle seems to be in the end. When Nokia’s gold rush was booming phones and other communication devices were 20 per cent of all Finnish exports. They were last year to less than three per cent and are expected to drop this years because Nokia moved manufacturing away from Finland.
Electrical and electronics exports were before the start of Nokia’s collapse in 2008 of more than EUR 15 billion. Electrical and electronics export from Finland were last year down to 7.3 billion Euros. This means drop to less than half in just few years! Was no wonder that market got too hard for Prosessori Magazine, an important publication for many people working on those fields and a magazine I wrote to.
The electronics industry exports amounted to more than three billion (communication equipment accounted for more than half of that). Electrical products were exported to almost four billion euros. This means that the traditional electrical engineering industry is currently more important to Finland than electronics export sector.
What kind of changes are needed in this industry? The future of the electronics industry in Finland presentation from 20120 says that a significant structural change has taken place as many manufacturing companies were transformed into service and software companies. It also says that Finnish system, having successfully managed the catching-up process, is currently at crossroads but without an explicit crisis because ICT markets are still in the growth phase.
The mass production of electronics moves to the low cost countries and locations. The focus of the business has changed from the assembly of modular products to the critical components, software and services as well as to the management of the value chain. Competition will emphasise the need for truly novel ideas. The question is how can we innovate those?