Kunnskapsparken AS (Bodø innovation centre) - Bodø Graduate School of Business
Main points
In the most recent round of talks, conducted in the period January - February 2003, a total of 229 contacts in the regional network were interviewed. The following main points are based on the regional reports:
- Export industries report falling demand. The fall is sharper than noted in the previous report. Companies describe a situation where competitiveness has deteriorated and activity is decreasing as a result of high wage growth and a strong krone exchange rate.
- The problems experienced by export industries are spreading to companies that supply goods to the domestic market. They are now also witnessing a fall in demand.
- In the offshore-related sector, the number of contracts has decreased with low activity in exploration and the development of new fields. The development of the Snøhvit field, however, is making a positive contribution. Compared with the previous report, developments are now considered to be moving on a downward path.
- For manufacturing, retail trade and services to households, demand appears to be showing continued moderate growth.
- In the construction industry, demand has remained unchanged during this period. Companies are, however, expecting 2003 to be characterised by falling demand.
- Redundancies and the use of lay-offs as an instrument both in the public sector and manufacturing have been reported in this period.
- As in previous periods, the public and private sectors again report that wage growth in 2002 was very high, with negative consequences for competitiveness. Both in the private and public sector annual wage growth is expected to be lower this year.
- Electricity prices are of relatively minor importance to companies. Most have long-term price agreements. The exchange rate and wage growth continue to be the factors regarded as having the most negative impact on competitiveness.