Machinery and metalworking
Estonia - the Land of Engineers
The development of the Estonian engineering industry is mainly affected by foreign markets, most of the production is exported (about 80%). According to forecasts the export of the engineering industry as well as sale to the domestic market will increase in the longer perspective. Production is exported most to Finland, Sweden, Russia, Germany and Norway.
The engineering industry’s production and the number of persons working in the sector increased in 2014, in addition more investments were made, this primarily into the machine and equipment fleet and buildings. About 60% of investments were directed into machines and equipment.
Over 150 small and medium size producers of machines and equipment operate in Estonia whose production includes wood-processing equipment, logging trailers, log lifts, construction lifts, forestry vehicles, handling and lifting equipment and their parts, production automation, industrial equipment, industrial electronics, various equipment for the engineering industry and institutional kitchen equipment. Estonian companies
The Estonian electronics and electrical equipment production sector differs from the others by fast development, which is related to globalisation and adaptation to the speed of product development. The sector is strongly oriented to the foreign market, the majority of the sales revenue is made up of export (95%). Most of the larger companies of the sector are also based on foreign capital. In 2014 companies exported their production most into Sweden, Finland, the USA, Mexico and the UK.
Sales revenue of companies has increased around three times in the last six years. In addition to sales revenue the production volumes and employment also grow continuously and the future growth potential can also be assessed as high. In 2014 the sector’s investments into tangible assets were still growing, the greatest part of investments went into machines and equipment.
Nearly 200 companies operated in the electronics and electrical equipment production sector in 2014, which at the same time makes up a small percentage of the entire processing industry. The production of electronics and electrical equipment is divided into two sub-branches. The producers or computers, electronics and optical equipment, make mobile telecommunications network devices, electronic components for industrial and medical equipment, various telecommunications equipment and computers. Of electrical equipment electricity switch gears and electric generators, control apparatus of electricity switch gears, electric motors and equipment and cables are produced. Estonian companies
Wood and furniture sector
Estonia – the Land of Forests
Timber is one of the more important natural resources in Estonia next to oil shale and gives an important contribution into balancing the foreign trade balance. The timber industry is one of Estonia’s largest industries and in the last five years stable growth has prevailed in the sector, timber prices are rising and production and export volumes are increasing. Export, which makes up nearly two thirds of sales, has always had an important position for the Estonian timber industry. In 2014 export turnover existed with 95 different countries, the main export countries of destination were Sweden, Norway, Finland, Germany and Great Britain. Of larger product groups the segment of wooden houses continued solid growth.
The competitiveness of the timber industry is extremely important for the Estonian economy. As a sector valuing domestic resources, the added value generated from export is largely kept in Estonia. It is also an important employer. In 2014 investments into the timber industry increased by 53% in comparison with the previous year. Even though the added value of the sector has continued to grow, it is higher in larger strongly automated companies.
About a thousand companies operate in timber processing and producing timber products. The larger companies of the sector own modern technology and have a high level of competitiveness in domestic as well as foreign markets. The timber industry’s selection of products is wide – wooden doors and windows, shutters and their frames, sawn and planed timber and laminated timber beams, parquet flooring, packages and cable-drums, veneer and plywood, particle and fibreboard, laminated timber, garden houses are produced and the production of wooden houses has come into the picture increasingly more. Estonian companies
The furniture industry is a sector with long traditions in Estonia, more than 500 companies operate in Estonia. Successful competing on foreign markets has an important place in furniture production. About two thirds of the output is exported, but in the last few years the proportion of export has slowly reduced as the domestic market has been significantly stronger in comparison with the main foreign markets. The main export countries of destination in 2014 were Finland, Sweden, Denmark, Norway and Germany and the main exported product groups were seats, furniture parts, dining and living room furniture, wooden kitchen furniture, wooden bedroom furniture and other furniture products.
The products and services of the information and communications sector are strongly linked to the developments of other sectors of the economy, which makes the sector important for the entire Estonian economic system. The sector is developing in a stable manner and is creating great added value, which is comparable to the average of the OECD countries. The continuous growth of the sector’s sales revenue, added value and number of employees is in accordance with the long-term prospects of the given field. Thanks to the positive developments of economic indicators the sector is becoming one of the most competitive sectors in Estonia.
Estonia - front runner in implementing e-solutions
In the field of internet and data communications, significant investments have been made into telecommunications infrastructure. With fibre optic cables covering the whole country, and direct undersea connections to Finland and Sweden and links to Russia and Latvia, high-standard communications are guaranteed. The Internet is widely used among the locals — about 84% of 16–74 year old people used the Internet in 2014.
Logistics and transportation sector
Estonia - between East and West
Estonia’s geographic location creates an excellent ability to offer logistics services in every field. Transport services therefore give an important contribution into receiving export revenue and balance Estonia’s foreign trade balance. Estonian transport system includes railroad, road, sea, inland waterway and air transport, electric transport in cities and pipeline transport. The revenue of Estonian transport companies increased in 2014 but due to the continuing deceleration of economic growth and the small demand resulting from it (incl. export demand), significant growth is not foreseen in the transport sector in 2015. Estonian companies