China's rise in electric vehicle production 🚗is now undeniable.👇
As early as 2018, data collected in the global Trendeo database (Industries & Strategies) showed firstly that investment in electric vehicles had overtaken investment in combustion engine vehicles:
and secondly that Asia accounted for 66% of electric vehicle investment projects - compared to 9% for America and 23% for Europe:
At the time this data was released, it was still a surprise.
Every day, users of our Industries & Strategies database have access to more than 25,000 investment projects, which describe today the industry of tomorrow!
This is the sixth long paper in a series aiming at showing the wealth of information opened to our industries & strategies database customers. Previous papers offered information on R&D capital investments, geographical analyses of the United States, Asia, the European Union and Africa and this one is specifically discussing manufacturing investments.
The Industries & Strategies database, created and distributed by Trendeo, tracks, since 2016, every industrial investment (manufacturing, energy, logistics, R&D) announced worldwide (over 30 MUSD or 50 jobs). Each information is classified by product, sector, company, country, even a qualitative score (factories of the future score). Since january 2016, 9 127 investments have been tracked, among them 5 557 for manufacturing projects (61%). As the database is updated weekly, our users benefit from a more detailed information, including cancelled investments, factories of the future score details, capacity…
In one line: in manufacturing activities, from january 2016 to may 2018, we tracked 5 557 projects, for a total amount of investment (capex) of 1 652 M$ and 1 698 090 jobs added.
In the database, each information is described precisely across 30 quantitative and qualitative fields. The tables below synthetize the available data alongside different criteria.
Each project in our Industries & Strategies database is classified by sector but also alongside the type of activities performed. We have defined nine types of activities, listed below. The table shows that manufacturing makes almost 61% of projects, almost 80% of jobs created and 43% of amounts invested. Manufacturing is only the third sector for the average capital expenditure per project, after mining and power generation projects.
China comes first in terms of capital expenditure, with 27% of global amounts. India and the United States taken together are just slightly over China. South Korea comes in fourth position, with a relatively low number of projects – with a very high average capex, due to the electronics sector. Germany is the first European Union country, in 17th position.
Among the 30 top regions (out of 952 regions in which manufacturing investments have been tracked),.five countries are present with several regions: China (12 regions), India (7 regions), and the United States, South Korea and Saud Arabia with two regions each. The European Union has no region within the top 30 world manufacturing regions.
Almost half of investment projects (46,5%) come from foreign direct investment (FDI). FDI share is lower for capital expenditure (36,5%): FDI projects are 34% less capitalistic than domestic projects. Spain and Mexico have the highest level of dependency on FDI, respectively in amounts invested and number of projects, while Taiwan and Japan have the lowest levels for those same criteria.
The United States come first by number of FDI projects, slightly ahead of Germany and Japan. China, combined with Taiwan, is first for amounts invested abroad, and fourth by number of projects (with or without Taiwan). Switzerland manufacturers are sixth by number of projects, and 15th by amount invested (Nestlé, LafargeHolcim, Sika, Ineos, ABB, Novartis)…
Almost 3000 groups were included in our database from 2016 to 2018. By amount invested, the Chinese holding company of the Tsinghua university, Tsinghua Holdings, tops the ranking, before Saudi Aramco and Samsung. By number of projects, seven Indian companies come in the top 20 positions, including the top three ranks. The automotive industry is also well represented by number of projects, with Toyota, Porsche and General Motors leading the sector.
Whenever the information is available we track, in dedicated fields, information about capacities, surfaces but also suppliers, contractors and customers. The table below consolidates engineers and contractors alongside the number of projects where they were listed (only suppliers with at least one foreign investment project were included in the final table. The first supplier is the Finnish company Valmet. After this, 7 of the top 20 are American companies (USA), and 6 are German.
The chemicals industry is the first sector by number of projects and amounts invested, with 15% of projects tracked and almost a quarter of amounts invested (there are close links with the energy sector, the main projects being petrochemicals complexes, with actors such as Saudi Aramco, Sasol or Royal Dutch Shell). Food and the automotive industry come second and third, by number of projects, the food sector having one of the lowest amount invested by project. Electronics is second sector by amount invested, with an average amount invested of $1,3 billion.
Using a more detailed level of analysis, we have cement, automobile (cf. detail after) and parts and accessories for motor vehicles as top products by number of projects, and refined petroleum, basic components for electronics and hydrocarbons by amount invested.
The detailed table for automobile product, below, shows the transition towards electrical vehicles, with 50 projects for electric cars, 14 for electric buses, one for electric truck and one project for autonomous cars.
Our factories of the future score aggregates six components defined with our partners (Fives, EDF (Electricité de France) and the Institut de la réindustrialisation):
Each criterion is ranked 0 (no mention in the news describing the investment), 1 (some measures described) or 2 (quantitative objectives defined for the criterion considered or insistence on it). Adding those 0-2 scores over six criteria gives a total Industry of the Future score which varies from 0 to 12.
Flexibity of the production is the first criteria mentioned in our data: 1101 projects (19,8%) mention one degree of the flexibility (score 1 or 2), with an average score of 0,28. Digitization is slightly below. Territorial efforts and environmental efforts are also close, mentioned in only 11% to 12% of manufacturing projects. Then come energy efficiency and finally social efforts. All in all, 41,5% of manufacturing projects mention at least on of our 6 criteria of the factory of the future.
There are, listed in the following table, the ten highest rated projects in our database (Tesla investment being the 9 rated score with the highest amount invested). The average score of a manufacturing investment is 1,05, similar to the average global score (1,03).
We selected only the sectors with more than 30 projects. The beverage sector comes first, mainly due to the highest score for environmental efforts, with technologies such as zero liquid discharge and/or water consumption reduction and highest score for territorial efforts (local sourcing mainly, even with one project aiming at import substitution). Paper and cardboard has the best score for energy efficiency, frequently quoting the use of a new machine as an energy saving mean. The pharmaceutical sector is the sector most frequently mentioning flexibility, with two meanings of the term: the ability to make different products (in different forms, such as tablets, powders…) but also to switch from low scale to higher scale production. Digitization is strongest in the furniture industry, with built to order and made to measure abilities. Social efforts are the least frequently mentioned. They can take many forms, such as higher wages, commitment to recruiting women, social benefits for health, retirement plans, but also tuition subsidies.
Projects in Germany top the ranks for the factory of the future score, with an average German score of1,7, 60% better than global average. This position is in line with the first position obtained by BMW in the score by company. Other German groups such as Daimler, Porsche or Siemens are among the top 20 companies. The Algerian group Cevital is among the less-known companies in our rankings, with investments in the food sector but also in steel industry.
The following table lists the ten biggest manufacturing investments announced since january 2016 (we recorded in our database some projects that had been announced before but were discussed again since January 2016). Those ten investments represent 14% of the total amount invested through the manufacturing projects tracked by Trendeo.
Each operation is described on a dedicated page in the database, including information such as production capacity.
This document is a short synthesis of the data available in the Industries & Strategies database about manufacturing investments. You can learn much more about this database by contacting Trendeo:
contact@trendeo.net / +33(0)1 42 79 51 26 or david.cousquer@trendeo.net
The Industries & Strategies database has been made possible by our sponsors: Fives, the Institut de la Réindustrialisation, EDF and Defi&Co (Programme d’investissement d’avenir (PIA), managed by Caisse des Dépôts et Consignations).
This article can be downloaded in PDF version on this section of our website.
This paper is the fifth of a series of papers aiming at showing the insights on worldwide industry offered by our Industry & Strategies database. Previous papers offer information about the United States, the European Union, worldwide R&D and Africa.
From january 2016 to april 2018, we tracked 4 292 investments announced in Asia, for $2 045 billion and 1 238 267 jobs.
Our Industries & Strategies database tracks, since 2016, every industrial investment (manufacturing, energy, logistics, R&D) announced worldwide (over 30 MUSD or 50 jobs). Each information is classified by product, sector, company, country, even a qualitative score (factories of the future score). Since january 2016, 8 973 investments have been tracked, among them 4 292 in Asia (almost 50%). As the database is updated weekly, our users benefit from a more detailed information, including cancelled investments, factories of the future score details, capacity…
In the database, each information is described precisely across 30 quantitative and qualitative fields. The tables below synthetize the available data alongside different criteria.
Among the main economic areas below, Asia ranks first by amount invested, number of projects invested and jobs created. The average amount invested by project is 13% higher in Asia than the global average.
Top areas by number of projects received, jobs and by investment received in M$, 2016-2018
Map from our 2017 World Industrial investment monitor
Tracking information throughout a list of languages that does not include Chinese, yet, we probably underestimate investment in China, as only the biggest investments are reported by English speaking media. In an appendix, we try to estimate the degree of this under-evaluation. All following comments must then be understood keeping this point in mind.
India and China altogether make slightly more than half of the amount invested in Asia, and two thirds of the number of projects tracked. In number of projects, Vietnam and Japan rank third and fourth, but Saudi Arabia and Indonesia replace them by amount invested – Saudi Arabia having one of the highest amount invested by project.
Investments by country, announced in Asia, 2016-2018, tracked by Trendeo,
by number of projects, jobs created, and amounts invested.
Among the 30 top regions ranked by amount invested (out of 434 regions in which investments have been tracked), 10 are in China, 6 are in India, 2 in Saudi Arabia and Bangladesh and ten countries have one region in this ranking: South Korea, Kazakhstan, United Arab Emirates, Azerbaidjan, Malaysia, Pakistan, Iran, Turkey, Indonesia and Taiwan.
Investments by region, announced within Asia, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts invested.
By city and by amount invested, Penukanda comes first, followed by Petaling Jaya and Chongqing. By number of projects, we find three Indian cities, Hyderabad, Bengaluru and Bharuch, with cities from other countries in Myanmar (Yangon), Singapore, Abu Dhabi, and Shanghai as first Chinese city.
Top cities in Asia by number of projects received, jobs and investment amount received, 2016-2018. In bold, cities that are included in the two rankings, by amount invested and number of projects
Asia is the geographical area where the share of endogenous (coming from outside of Asia) investments is the highest – with 93% of investments coming from Asia (Data from our 2017 report on industrial investment). For each Asian country, in the following table, we added in the last column the share of domestic investment in the overall amount of investment from domestic companies (the first line of the table indicates that Chinese companies announced 579 investment projects, for $490 billion, 82,7% of which invested in China).
The United States are the first investor outside the zone, followed by the United Kingdom, Kuwait, France and Germany. A spectacular result is the very low share of Japanese investments going to Japan itself: 16,7%.
Country of origin of investments announced in Asia, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts invested.
In Asia, investments by state owned companies is important: 8% of projects and 18% of amount invested are undertaken by state owned companies (in the rest of the world, it is 5% of projects and 10% of amounts invested). We also find state owned holdings or funds, such as Chinese Everbright, at the top positions in our ranking. By amount invested, BP, Exxon and Chevron are the first three foreign investors. By number of projects Amazon, Cargill and the Canadian Fairfax financial altogether announced 57 projects. Those 30 top investors represent 27% of overall investment in Asia.
Companies announcing investments in Asia, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts invested, ranked by number of projects.
Companies announcing investments in Asia, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts invested, ranked by amount invested.
Detail of the ten top investments by state owned Chinese companies.
Our database characterizes the main type of activity for each project. Asia distinguishes itself clearly by a share of manufacturing which, at 53,4% of amounts invested, is 10% higher than world average, and mining and quarrying activities which are 12% lower than world average. The amount invested in manufacturing, $1.092 billion, make 67% of world manufacturing investment. Asia is clearly the manufacturing center of the world.
Investments announced in Asia, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts, by type of activity.
Last column: average amount invested by project.
The electronics sector is the most over-represented in the top sectors. In fact, the $347 billion of investment in electronics make 92% of world investment in electronics.
Investments by sector in Asia, 2016-2018, in number of projects, jobs and amount invested.
Last column: average amount invested by project.
The following table lists the ten biggest investments announced since january 2016 (we recorded in our database some projects that had been announced before but were discussed again since January 2016). Eight of these projects are in the energy sector, the other two are in electronics.
Our factories of the future score aggregates six components defined with our partners (Fives, EDF - Electricité de France - and the Institut de la réindustrialisation):
Each criterion is ranked 0 (no mention in the news describing the investment), 1 (some measures described) or 2 (quantitative objectives defined for the criterion considered or insistence on it). Adding those 0-2 scores over six criteria gives a total Industry of the Future score which varies from 0 to 12.
There are, listed in the following table, the 12 projects with a score of 9 or more. The average score in Asia is 0,89, lower than the average global score (1,03). There is no apparent link between the factory of the future score and the size of the projects. The average score for FDI investments (0,86) is lower than the average domestic score (0,91).
Best scored projects for factory of the future criteria.
Each operation is described on a dedicated page in the database, including information such as production capacity.
The next table shows the detail by product and type of products for the energy sector. The nuclear sector and fossil fuel power plants are roughly equivalent, with 76% of investments in the sector. With 23%, the renewables come in third position, with hydroelectricity much more present than solar and wind.
Repartition of the investment by product and type of product within the energy sector, 2016-2018
In our results, readers will find that investment in India is 2% higher than in China. This does not seem coherent with the fact that Chinese GDP is 2,4 times higher than India’s[1], and China’s GDP share of industry is also higher than in India – by ten points. As the following chart shows, for each category of investment, by amount, we have more projects detected in India, except when amounts invested become closer to the $2,5 billion range. Most probably, the projects in China under this size are not reported by English speaking media, only in the Chinese media. We think that working in Chinese will help us, in the near future, to close the gap of information between China and India. It must also be taken into account the fact that the IMF forecasts a higher growth in India than in China in 2018[2], which could lead to a Chinese lead over India lower than expected.
Number of projects in India (green dots) and China (red dots), for each class of investments by amount invested
(meaning, from column 3: there are in our database 100 investments between $10 M and $50 M in China, and 600 in India).
[1] http://databank.worldbank.org/data/download/GDP_PPP.pdf
[2] https://www.forbes.com/sites/salvatorebabones/2018/01/02/india-will-outgrow-china-in-2018-but-must-invest-in-next-generation-value-chains/#4d2368b844d8
This document is a short synthesis of the data available in the Industries & Strategies database about investments in Asia.
Contact us for more information, pricing, a trial, a face to face or an online presentation:
contact@trendeo.net / +33 (0) 1 42 79 51 26
David Cousquer / david.cousquer@trendeo.net
The Industries & Strategies database has been made possible by our sponsors: Fives, the Institut de la Réindustrialisation, EDF and Defi&Co (Programme d’investissement d’avenir (PIA), managed by Caisse des Dépôts et Consignations).
The Industries & Strategies database, created and distributed by Trendeo, tracks, since 2016, every industrial investment (manufacturing, energy, logistics, R&D) announced worldwide (over 30 MUSD or 50 jobs). Each information is classified by product, sector, company, country, even a qualitative score (factories of the future score). Since january 2016, 8 973 investments have been tracked, among them 418 for R&D projects (4,7%). As the database is updated weekly, our users benefit from a more detailed information, including cancelled investments, factories of the future score details, capacity…
In the database, each information is described precisely across 30 quantitative and qualitative fields. The tables below synthetize the available data alongside different criteria.
Each project in our Industries & Strategies database is classified by sector but also alongside the type of activities performed. We have defined nine type of activities, including R&D. The table below show that R&D makes almost 5% of projects, but due to an average amount per project lower than global average, represents only 1% of amounts invested.
R&D is much concentrated than overall investment: the top 20 countries, in terms of amount invested, gather almost 99% of R&D, whereas for all activities, the top 20 countries collect only 80% of amounts invested.
The United Kingdom comes first by amount invested, mainly due to a huge investment by Dyson in Malmesbury, in the electric car sector (2 500 M$, announced in 2016). India would come first by number of projects, one project ahead of the United States: both countries get a lot of R&D projects with comparatively smaller average amount invested per project. Asian countries represent 57% of investments, Europe (including Turkey and Israel) collect 30% and Americas slightly less than 13%.
Among the 25 top regions (out of 160 regions in which R&D investments have been tracked),.4 countries are present with several regions: India, China, the United States and Germany. Karnataka (mainly Bangalore), is the first region by number of projects. By amount invested, Chinese regions would have obtained the top three ranks (England would be first but we will adopt soon another definition for the British regions, which will change this situation). California is the first North-American region, followed by Ontario. ĂŽle-de-France is the first region for continental Europe.
By city and by number of projects, three Indian cities come ahead of our rankings. By amount invested, Hsinchu (Taiwan), would be first, with just one R&D project on semiconductors by TSMC. Munich is ahead of Paris, although ĂŽle-de-France is stronger than Bavaria, because of Saclay. Singapore and Tel Aviv occupy positions five and six, and Toronto is the first north-american city, just before Durham (North-Carolina), in the Research Triangle.
Of the 418 projects, 230 (55%) are Foreign Direct Investment projects. The table below show that this share varies among countries, from 100% of foreign projects (Mexico, Italy, Romania) to no foreign R&D projects (Turkey, Sweden).
Out of the 300 companies that invested in R&D from 2016 to 2018, the ranking by number of projects are very different from the ranking by amount invested (only Samsung and GE are in both top 15 rankings). By amount invested, electronics, automotive and pharmaceuticals companies take all the top spots. Two public investments are to be noticed there, both in Europe.
The automotive industry is the first sector by number of projects with almost 20% of R&D projects tracked. Electronics is first by amount invested.
At a finer level, artificial intelligence takes third place, with 5% of projects, computer programming adding another 4% to the list of digital activities. Other fields are mixing traditional activities and computer programming, such as autonomous vehicle. There is a digital and computer part for many traditional sectors.
The following table lists the ten biggest investments announced since january 2016 (we recorded in our database some projects that had been announced before but were discussed again since January 2016). Those ten investments represent 53% of the total amount invested through the 418 projects tracked by Trendeo.
Our factories of the future score aggregates six components defined with our partners (Fives, EDF (Electricité de France) and the Institut de la réindustrialisation):
Each criterion is ranked 0 (no mention in the news describing the investment), 1 (some measures described) or 2 (quantitative objectives defined for the criterion considered or insistence on it). Adding those 0-2 scores over six criteria gives a total Industry of the Future score which varies from 0 to 12.
There are, listed in the following table, 9 projects with a score of 6 or more. The average score of an R&D investment is 0,89, lower than the average global score (1,03). In fact R&D projects have lower scores for their energy efficiency measures (but they probably are less energy intensive projects) and for their environmental efforts (but they also are probably less pollutant emiting than, say, manufacturing projects). The only criteria where R&D projects have higher than average scores are social efforts and digitization.
Each operation is described on a dedicated page in the database, including information such as production capacity.
This document is a short synthesis of the data available in the Industries & Strategies database about R&D investments. You can learn much more about this database by contacting Trendeo:
contact@trendeo.net / +33(0)1 42 79 51 26 or david.cousquer@trendeo.net
The Industries & Strategies database has been made possible by our sponsors: Fives, the Institut de la Réindustrialisation, EDF and Defi&Co (Programme d’investissement d’avenir (PIA), managed by Caisse des Dépôts et Consignations).
The Industries & Strategies database tracks, since 2016, every industrial investment (manufacturing, energy, logistics, R&D) announced worldwide (over 30 MUSD or 50 jobs). Each information is classified by product, sector, company, country, even a qualitative score (factories of the future score). Since january 2016, 8 879 investments have been tracked, among them 569 in Africa (6,4%). As the database is updated weekly, our users benefit from a more detailed information, including cancelled investments, factories of the future score details, capacity… See other papers on industrial investment like this or download this paper.
In the database, each information is described precisely across 30 quantitative and qualitative fields. The tables below synthetize the available data alongside different criteria.
A map of industrial investments in Africa tracked by Trendeo from january 2016 to april 2018
Among the main economic areas below, Africa ranks fourth by amount invested, ahead of the European Union, and fifth by number of projects invested and jobs created. The average amount invested by project is 63% higher in Africa than the global average, in relation to the high share of mining projects.
Four countries, Egypt, South Africa, Morocco and Nigeria represent 33% of jobs created, 39% of projects and 56% of the amount invested. Egypt and Nigeria benefit from huge energy and mining investments (to mention only projects over 10 billion dollars, we have a nuclear plant and two gas extraction projects in Egypt, and three oil fields and a refinery in Nigeria).
Among the 30 top regions (out of 219 regions in which investments have been tracked), there are 5 Egyptian and South-African regions, 3 Moroccans and Angolans, 2 from Ghana, Kenya and Nigeria, Zimbabwe, Ivory Coast, Senegal, Ethiopia, Tanzania, Zambia and Rwanda have also one. Ten of these regions are capital region of their respective countries.
By city and by number of projects, Luanda comes first with twelve projects, followed by Cairo (with an amount invested much more important), Tangier, Casablanca, Ondjiva and Harare.
Africa is the geographical area where the share of exogenous (exogenous meaning coming from outside of Africa. FDI share of investment would be higher still, since we have counted FDI from African countries into other African countries as endogenous) investments is the highest – on the other side, Asia is the most autonomous area, with 93% of investments coming from Asia. By country of origin, foreign direct investment makes about half of projects, jobs created and amount invested. France is the first foreign investors by number of projects, and third by amount invested. China and India have equivalent shares, in terms of project, but the average Chinese project is five times higher, at 828 M$ against 163 M$. The United States are coming in fifth position by number of projects, but first in terms of amounts invested.
In Africa, the presence of state owned investments is striking: 26% of the amounts invested come from state-owned companies, against a global level of 14%. We find at the first place the Government of Egypt, by number of projects and amount invested. Dangote, the Nigerian group, is first private investor, by number of projects, and fourth by amount invested. Among the biggest investors by amount invested we find a lot of energy companies (Italian ENI, French Total, Anadarko, Eskom Holdings…) The cement industry is also well represented with Lafarge-Holcim, Addoha, GICA, Pretoria Portland…)
The database characterizes the main type of activity for each project. The data shows that mining and quarrrying represent more than 40% of the amount invested in Africa, a level 17% higher than global average. The other major difference between Africa and global average is that manufacturing is 20% lower in Africa than globally, with only 22,6% of amounts invested.
On a more detailed level, the oil & gas mining sector makes one third of amounts invested in Africa, 20% more than global average. Manufacturing activities implying assembling parts and a network of suppliers and customers are less represented in Africa: electronics specially, almost absent, then chemicals, or automotive, are under-represented.
The following table lists the ten biggest investments announced since january 2016 (we recorded in our database some projects that had been announced before but were discussed again since January 2016). All ten projects are energy related, and together they make 44% of the total amount invested (in the European Union, top ten projects were only 26%).
Our factories of the future score aggregates six components defined with our partners (Fives, EDF (Electricité de France) and the Institut de la réindustrialisation.):
Each criterion is ranked 0 (no mention in the news describing the investment), 1 (some measures described) or 2 (quantitative objectives defined for the criterion considered or insistence on it). Adding those 0-2 scores over six criteria gives a total Industry of the Future score which varies from 0 to 12.
There are, listed in the following table, the 13 projects with a score of 8 or more. The average score in Africa is 0,97, lower than the average global score (1,03) but higher than the Chinese score (0,94). There is no apparent link between the factory of the future score and the size of the projects. The best score has been given to a very small project in the food industry, by French company Olvea, in Burkina Faso.
Each operation is described on a dedicated page in the database, including information such as production capacity.
The next table shows the detail by product and type of products for the food sector, third sector in Africa in our data. Sugar, with only five projects, is first sector by amount invested, and one third of overall investment in Africa in the food sector.
This document is a short synthesis of the data available in the Industries & Strategies database about investments in Africa. You can learn much more about this database by contacting: Trendeo / contact @ trendeo.net / +33(0)1 42 79 51 26
The Industries & Strategies database has been made possible by our sponsors: Fives, the Institut de la Réindustrialisation, EDF and Defi&Co (Programme d’investissement d’avenir (PIA), managed by Caisse des Dépôts et Consignations).
The Industries & Strategies database, created by Trendeo and supported by prestigious sponsors, tracks, since 2016, every industrial investment (manufacturing, energy, logistics, R&D) announced worldwide (over 30 MUSD or 50 jobs). Each information is classified by product, sector, company, country, even a qualitative score (Advanced factories score). Since january 2016, 8 789 investments have been tracked, among them 1 234 in the European Union (14%). Since the database is updated weekly, our users benefit from a more detailed information, including canceled investments, advanced factories score details, capacity.
In the database, each information is described precisely across 30 quantitative and qualitative fields. The tables below synthetize the available data alongside different criteria.
Considered as a country (and including the United Kingdom), the European Union ranks third by number of projects received, and fourth by amount invested and jobs created. Even without the United Kingdom, the European would keep those ranks, but would come closer to China and further away from the United States.
Top countries by number of projects received, jobs and by
investment received in M$, 2016-2018
The United Kingdom, France and Germany received collectively half of the projects and jobs detected by Trendeo, and 66% of amounts invested. Nuclear projects announced in the UK are responsible, in part, for the huge share of the UK in the amounts invested. For industrial investments specially, the biggest projects distort the data (at the world level, the top 10 projects, 0,11% of the total, make for 9% of the amounts invested).
Investments by country, announced within the European Union, 2016-2018, tracked by Trendeo,
by number of projects, jobs created, and amounts invested.
Which representativity for our data?
It is not easy to compare with other rankings, but we have used two databases for this purpose: the European Restructuration Monitor (ERM), published by the Eurofound, and the European Investment Monitor 2017 (EIM), published by EY. The ERM tracks announcement of jobs creation or destruction throughout Europe (with more than 100 jobs created or suppressed), in all sectors. We have used their data for manufacturing, transportation/storage and Mining/Quarrying, and for business expansions, from January 2016 to April 2018. The top three countries in ERM data are Poland (170 projects), France (108 projects) and Romania (104 projects), UK is in fourth position and Germany 7th. The data are very different[1]. Some countries seem to be under-represented in our data, mainly east-european countries and more particularly Poland, Romania and the Czech Republic. Other countries are probably under-represented by ERM, Germany in particular.
The scope of the European Investment Monitor by EY is different: it tracks only investment by foreign companies, and include services investments. The similarity with our ranking is that it tracks real investments creating jobs within EU, and that both series should reflect, in one way or other, countries attractiveness. We have compared Trendeo’s data (2016-2018) with the last year known for EIM (2016, published in 2017). The top three countries in the EIM are the same than in Trendeo’s data: United Kingdom (1 144 projects), Germany (1 063 projects) and France (779 projects). EIM data place Germany closer to the UK and ahead of France. Overall, the data are much closer between EIM and Trendeo than for ERM and Trendeo (see appendix).
Many reasons can explain differences between rankings related to real investments:
- Languages used: when using only English to track announcements related to investment, one track mainly the most important projects, whereas someone using languages such as Polish, Czech or Romanian will be able to capture smaller projects, adding more depth to the data collected;
- Some countries may have different investment structure by company size: it is probably more difficult to track investments in countries known for having a lot of middle sized (Germany) or small (Italy) companies, than in countries where big companies are more represented (France, UK);
- There is a difference between the scope of data collected: some projects in the ERM database may be part of an industrial sector but for services activities (headquarters, shared service centers). As of now, we only track activities related to manufacturing, logistics, R&D and energy, so services by companies within the manufacturing sector, except for R&D, are not included in our data;
- Since we are tracking industrial and high value investments, the bigger projects weight more (in terms of amount invested) than in other rankings. Data on industrial investment will be more representative, by amount invested, with a data collection span of 5 years at least.
We are very conscious of these limitations and are working on reducing them. We think however that our general results are representative of the most important trends and we try to inform users and readers of some limitations in our findings. We also think that the detail of the information we collect, and specially our plant of the future score, are informative and can illustrate and complete other statistical analyses.
Among the 30 top regions (out of 242 regions in which investments have been tracked), there are 10 French regions, 7 Germans and 4 British (this number will probably change when we will split England in nine Nuts1 regions). Spain, Italy, Belgium, Netherlands and Poland have, each, only one region in this ranking (respectively Catalonia, Lombardy, Flanders, North-Brabant and Lower Silesia).
Investments by region, announced within the European Union, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts invested.
By city and by number of projects, Dublin comes first, with ten projects. Some cities have received manufacturing projects, like Coventry or Kecskemét, others, such as London or Paris, mainly received R&D or data center projects. Dublin has a mix of manufacturing, R&D, power generation and water treatment projects. In the top 30 cities, 4 are national capitals.
Top cities in the European Union by number of projects received,
jobs and by investment amount received, 2016-2018
By country of origin, foreign direct investment makes slightly less than one third of projects and amount invested, 44% of jobs created and 26% of amounts invested. The main foreign investors are, by far, the United States, followed by Japan, China, India, South Korea, Australia, Canada and Russia, and some neighbouring countries, members of the European Free Trade Association: Norway and Switzerland.
Country of origin of investments announced in the European Union, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts invested.
By company and by number of projects, Amazon tops the list of investors, with 32 investments (it does also top the list at worldwide level). German groups are very much present in the top ranks, with 6 groups in the top ten, although Germany itself is only the third country receiving investments. In fact, further analysis show that German groups localize 62% of their projects in Germany, while the share of domestic investment for French groups is 86%, and 84% for British groups.
Companies announcing investments in the European Union, 2016-2018, tracked by Trendeo,
by number of projects, jobs created and amounts invested.
The database characterizes the main type of activity for each project. The data shows that power generation represent almost half the amount invested and manufacturing, a quarter. The column difference with the world compares the share of each activity in the EU with the world share of this activity. It shows that the share of power generation is 23% higher in the EU than at world level, manufacturing, on the contrary is 16% lower. R&D activities are better represented within the EU than globally.
Investments announced in the European Union, 2016-2018, tracked by Trendeo, by number of projects,
jobs created and amounts, by type of activity. Last column: average amount invested by project.
On a more detailed level, the electricity, gas and steam sector makes almost half of the amount invested within the EU. An analysis by product (see appendix) show that renewables (wind mostly) amount for almost 40% of the investments in the energy sector. It is much more important than the share of this sector at the global level. The automotive sector is also better represented within EU. Sectors that are less represented than at global levels are chemicals, electronics, refining and basic metals. In terms of jobs, the automotive industry represents almost one third of the jobs announced.
Investments by sector, 2016-2018, in number of projects, jobs and amount invested. Last column: average amount invested by project.
The following table lists the biggest ten investments announced since january 2016. Energy, mining and the automotive industry are the only sectors included. Those ten projects (among more than 1200 projects), represent 26% of the total amount invested.
Our advanced factories score aggregates six components defined with our partners (Fives, EDF - Electricité de France - and the Institut de la réindustrialisation):
Each criterion is ranked 0 (no mention in the news describing the investment), 1 (some measures described) or 2 (quantitative objectives defined for the criterion considered or insistence on it).
Adding those 0-2 scores over six criteria gives a total Industry of the Future score which varies from 0 to 12.
There are, listed in the following table, the 13 projects with a score of 8 or more. The average score in the European Union is 1,27, higher than the average global score (1,01) and above the average score in the United States (1,21).
Each operation is described on a dedicated page in the database, including information such as production capacity.
Comparison between Trendeo’s data and the European Restructuration Monitor (Eurofound) and the European Investment Monitor (EY). Under the trend line, countries that are more present within Trendeo’s data, over the trend line, countries that are more represented within ERM or EIM data.
The next table shows the detail by product and type of products for the energy sector.
Repartition of the investment by product and type of product within the energy sector, 2016-2018
This document is a short synthesis of the data available in the Industries & Strategies database about investments in the European Union. You can learn much more about this database by contacting Trendeo.
The Industries & Strategies database has been made possible by our sponsors: Fives, the Institut de la Réindustrialisation, EDF and Defi&Co (Programme d’investissement d’avenir (PIA), managed by Caisse des Dépôts et Consignations).
The Industries & Strategies database, created by Trendeo and supported by prestigious sponsors, tracks, since 2016, every industrial investment (manufacturing, energy, logistics, R&D) announced worldwide (over 30 MUSD or 50 jobs). This working paper focuses on the United States.
Each information is classified by product, sector, company, country, even a qualitative score (Advanced factories score). Since january 2016, 8 789 investments have been tracked, among them 1 679 in the United States (19,1%). Since the database is updated weekly, our users benefit from a more detailed information, including canceled investments, advanced factories score details, capacity.
In the database, each information is described precisely across 30 quantitative and qualitative fields. The tables below synthetize the available data. Geographically, Texas, California and Michigan receive 20% of the projects tracked, and more than 25% of amounts invested.
Freeport (Texas), Huntsville (Alabama) and Spartanburg (South Carolina), top the list of destination cities by number of projects. Hackberry (Louisiana), Port Arthur (Texas), and Newberry (South Carolina), received the biggest amount of investments (almost to 20% of national amount for those three cities).
By country of origin, foreign direct investment almost make for 40% of projects and amount invested. Germany, Japan and China are the three first foreign investors by number of projects, but Taiwan takes the first place by amount invested (due to Foxconn and Formosa plastics announcements). Among countries with more than 30 investments in the United States during the period covered, Canada has the lowest average amount invested (M$ 77), and Italy has the highest (M$ 240, but it includes investments by Fiat-Chrysler, which have a domestic dimension).
By company, the list of top industrial investors is a mix between the new economy (Amazon – in logistics- and Facebook – data centres - are in the top five investors by number of investments announced) and the more traditional sectors such as energy and the automotive industry. Between Facebook and Amazon, the nature of projects is not the same: Amazon invest mainly in warehouses, whereas Facebook invested mainly in data centres. It must also be said that Amazon tops the list of worldwide investors, by number of projects announced, with 117 investments (Amount invested has been found in 15 out of 56 projects announced. A rough estimation based on type of investment and number of jobs created could raise the total amount of Amazon investment closer to 7 billion dollars.)
The database characterizes the main type of activity for each project. The data shows that manufacturing is less than half of amounts invested, mining and quarrying is roughly a quarter and power generation a fifth. R&D is less than 1% of amounts invested, but the column “difference with world” shows it is only very slightly lower than the average share of R&D investments at the global level. Power generation is a markedly lower share of investment in the United States than world average, and, on the other hand, data centres are a higher share of investments in the United States than world average (A detailed table comparing share of each sector in the United States and at global level is included in the appendix.) In the last column, amount invested by project, it appears that the average mining and quarrying project (2,3 billion dollars) is 8 times higher than the average investment (M$ 288).
On a more detailed level, five sectors make three quarters of the amounts invested: support mining activities (mainly midstream activities related to gas liquefaction), electricity, gas and steam (with almost three equal thirds between nuclear, fossil fuels and renewables), chemicals, automotive and electronics (within electronics, roughly one half of investments goes to components, and a quarter goes to display components).
The following table lists the biggest ten investments announced since january 2016. Energy and electronics are the only sectors included. Those ten projects (among more than 1600 projects), represent 17% of the total amount invested.
Our advanced factories score aggregates six components defined with our partners (Fives, EDF (Electricité de France) and the Institut de la réindustrialisation):
Each criterion is ranked 0 (no mention in the news describing the investment), 1 (some measures described) or 2 (quantitative objectives defined for the criterion considered or insistence on it). Adding those 0-2 scores over six criteria gives a total Industry of the Future score wich varies from 0 to 12.
There are, listed in the following table, the ten projects with a score of 8 or more. The average score in the United States is 1,21, higher than the average global score (1,01).
Each operation is described on a dedicated page in the database:
The following table gives the share of the United States in each sector and compares it with the average share of the United States in the global investment. For instance, the United States make 23,1% of the global investment in the chemicals sector. It is 10,1% over the average share of the United States in global investment. It seems, with two years of data, that chemicals are a strong sector in the United States. Other strong sectors are support mining activities, electrical equipment, information services (data centres mainly), airplanes, water transport and supply, wood industries, retail trade. Sectors where the United States are under-represented are forestry, coal mining and other mining industries, warehousing, electronics and electricity, gas and steam.
The next table shows the detail by product and type of products for the electronics sector.
This document is a short synthesis of the data available in the Industries & Strategies database about investments in the United States. You can learn much more about this database by contacting Trendeo.
The Industries & Strategies database has been made possible by our sponsors: Fives, the Institut de la Réindustrialisation, EDF and Defi&Co (Programme d’investissement d’avenir (PIA), managed by Caisse des Dépôts et Consignations).
The World Industrial Investment Monitor, a factory of the future tracking tool
Spanning from the Fives Plants of the future observatory, Fives, EDF, the Institut de la Réindustrialisation – whose founding members are GIM, Syntec-Ingénierie, EPF and Cesi - and Trendeo, a provider of business data, set up the World Industrial Investment Monitor. This project is supported by the Programme Investissements d’Avenir DEFI&Co, managed by CESI.
The monitor, which tracks major investment announcements in industrial, logistics, energy production and R&D, uses a database that collects information in real time. Its purpose is to measure investment trends at a global level, either investments in new production units, or in existing industrial units, by identifying the projects and achievements contributing to the development of the Industry of the Future.
This unique tool is a first rate way to analyze the Plant of the Future's progress in global industrial investments.
Every day, announcements of industrial investments of over $30 million, are gathered from some 200,000 sources in the international press. The Plant of the Future investments are identified by using a scoring system based on technological and society-related, 6 Industry of the Future criteria defined within the Fives Plants of the Future Observatory such as: flexibility, digitalization, energy efficiency, environmental protection (social efforts), integration into the local economy and efforts made on social issues.
In March 2018, the results of the 2-year analysis provided a wealth of information. Information was gathered in 162 countries on 3,412 projects in 2017, amounting to some $1,026 billion in investment. Major projects make up a large proportion of the investment. The average investment is $444 million while the median amount is $58 million. Remarkably, some 41% of the projects met at least one of the Plant of the Future criteria. The various investments are expected to create nearly 600,000 jobs.
By continuing to collect data, the International Industrial Investment Monitor will be able to measure the reality of the Plant of the Future Worldwide and the progress of issues related to the Industry of the Future.
See our press pack at the link below for more information:
Industrial Investments worldwide 2017
Press contact:
About Fives
Fives is an industrial engineering group that designs and supplies machines, process equipment and production lines for the world’s largest industrial companies including aluminum, steel, glass, automobile, aerospace, logistics, cement and minerals, energy and sugar sectors. Located in 30 countries and with nearly 8,400 employees, Fives is known for its technological expertise and competence in executing international projects.
Fives’multi-sector expertise gives it a global vision of the industry, which provide a continuous source of innovation. The effectiveness of its R&D programs enables Fives to design forward-thinking industrial solutions that anticipate clients’ needs in terms of profitability, performance, safety and compliance with environmental standars. The strategy is based on a human resources policy focusing on the individual, encourages initiative-taking, technical excellence and team spirit.
In 2012, to mark its bicentenary, the Group set up the Fives Plant of the Future Observatory. With the new economic, social and environmental challenges faced by industries in the 21st century, the Observatory runs an open debate on the industry of the future and the challenges of the Plant of the Future and shares these points of view with the public
.
About EDF
EDF, a world leader in low carbon energy production
A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: generation, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 37.1 million customers, of which 26.2 million in France. The Group generated consolidated sales of €71 billion in 2016. EDF is quoted on the Paris Bourse.
The Institut de la réindustrialisation
The Institut de la Réindustrialisation was founded in 2015 by two engineering schools – EPF and CESI, and two professional federations – GIM AND Syntec Ingénierie. The purpose of the Institute is to produce and share knowledge and expertise on the future of the industry, its knowledge and skills. The Institute is involved in a number of projects, promoting themes such as guiding young people towards careers in industrial sectors, in particular women. The Institute attends and organizes conferences, workshops and other events to discuss and debate these issues.
The international industrial investment barometer is supported by the future investment program DEFI&Co, funded by the Caisse des DĂ©pĂ´ts et Consignations financial institution and the General Commission for Investment.
DEFI&Co aims to qualify young people, in particular women, for jobs in industrial sectors with leading technology such as Product Lifecycle Management (PLM), Building Information Modeling (BIM) and information science. International observers of industrial investment support the research relating to Plant of the Future and the analysis of regional attractiveness.
About Trendeo
Trendeo was created in 2007 to collect data in real time about economic tendencies and trends: investment and jobs were the first events we tracked in France, followed by startups, fundraising and now industrial investments worldwide in a new database.
In France, we find a good correlation between our data and data collected by the national institute of statistics (INSEE). The data published by Trendeo about the French economy is regularly used by various customers and newspapers as an indicator of the status of the French economy.
Different customers access our data daily to monitor economic activities under territorial or sectoral angles. Other customers, among them a global leading consultancy, use our worldwide industrial data for research activities.
Emmanuel Macron and Narendra Modi will attend the first International Solar Alliance summit on march the 11th.
We have selected, for this occasion, solar investment projects tracked by our Industries & strategies database in India, since january 2016.
From january 2016 up to now, we recorded 79 projects (see map below). The total investment is 6,5 billions US dollars, and 1 400 jobs will be created upon completion. The cumulated power of those projects is 8 880 MW.
About sixty companies will invest in those projects, among them the most present will be NCL India, West Bengal State Electricity, Azure Power, Aditya Birla Solar et NTPC.
Prologis research just published a report on the most desirable logistics location in Europe. The report shows that proximity and market factors are more important than cost factors.
On a map included in the report, desirable locations are concentrated in north-eastern Europe, beginning in London, plus Paris, Madrid and a few other places.
We made a comparison with a map of 75 logistics investment in Europe, tracked by our Industries & Strategies database. Those 75 investments, for a total amount of 3,3 billion USD, will create 22 800 jobs. They represent a sample of decisions made during the last three years.
Those two maps, compared hereunder, reveal a fair proximity between investment decisions tracked by Trendeo and desires as surveyed by Prologis Research.
