Manufacturers Association of Israel

The Cyprus Investors Show 2015
Dan Catarivas
Manufacturers Association of Israel (MAI)
November 2014
Presidium of Israeli
Business Organizations
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Manufacturers Association of Israel
Federation of Israeli Chambers of Commerce
Association of Contractors & Builders in Israel
Farmers’ Federation of Israel
Association of Banks of Israel
Israel Diamond Manufacturers Association
Israel Hotel Association
General Association of Merchants in Israel
Association of Life Insurance Companies of
Israel
Association of Craft & Industry in Israel
National Federation of Trade in Israel
Cinema Owners Association in Israel
Israel Federation of Independents’ Organizations
– LAHAV
Association of Security Enterprises in Israel
Israeli Cleaning & Maintenance Union
Manufacturers Association of Israel (MAI)
Established in 1921
An Independent private organization
Self-Financed
Israel’s largest and most influential economic
organization
Largest employers’ organization, representing
90% of the industrial output
President of MAI is also the Chair of the
Presidium of Business Organizations (FIEO)
“The Voice of the Industry”
Manufacturers Association of Israel (MAI)
President
Electronics,
Information &
Software
Industries
Building
Materials &
Consumer
Goods
Chemicals,
Pharmaceutics
& Cleantech
Metal, Electrical
& Infrastructure
Industries
Food
Industries
Textile &
Fashion
Industries
Communications
Economy &
Regulatory
Policy
Foreign Trade
& International
Relations
Economic
Research
Health
Environment &
Finance &
Labor & HR
Small &
Medium
Factories
Divisions
Administration
Director General
Kibbutz
Industries
Sub-Associations
Haifa Branch
Southern Branch
Jerusalem
Branch
The Israeli Economy
2013 Facts & Figures
 GDP ($ Billions)
292
 Population (06/2014, Millions)
8.2
 GDP per Capita ($)
37,035
 Foreign Trade (% of GDP)
77%
 Total Exports (% of GDP)
38%
 Unemployment (5/14)
5.9%
 Business Sector Share in GDP
74%
 Industry Share of Business Sector
21%
The Israeli Economy
Main Characteristics
Export Oriented Growth
Advanced Technology Oriented
High Skilled Human Capital
Entrepreneurial Culture
Incentives for R&D & Investment
A High Growth Developed Economy
Growth in Selected Developed Economies 2013-2014
4.0
4
3.2
3
2.8
2.5
2.2
1.9
2
1.5
0.9
1
1.0
0
-1
-1.2
Source: OECD
2.6
2.4
1.9
1.5
1.7
2014
0.4
0.3
-1.8
1.3
1.2
3.0
2013
0.5
-2
1.4
2.0
2.6
3.4
3.2
0.5
A High Growth Developed Economy
Average Growth in Selected Developed Economies
2009-2013 & 2014-2015
2009-2013
2014-2015 Projected
4
3.5
3.5
3.4
3.0
3
2.5
2.5
2
1.8
1.5
1.2
1.2
1
0.9
0.5
0.3
0
EU
-0.5
Japan
-0.2
Sources: OECD, European Commission
OECD
US
Israel
Relatively Low Government Deficit in
Israel
As Percent of GDP, 2013
12.7%
9.3%
7.1%
7.0%
6.4%
5.9%
5.0%
4.6%
4.3% 4.3%
3.0%2.8%
2.5%2.4%
Source: OECD & BOI
9
2.1%
1.5%1.4%1.3%
0.9%
0.3%
Relatively Young Population
Median Age in Years - Country Comparison
50
45
37.2
40
35
29.7
30
22.6
25
20
25.5
18.1
15
10
5
0
Source: CIA Factbook
27.7
38.8
40.3
40.6
40.6
41.3
41.4
41.5
41.8
44.2
45.7
45.8
Relatively Low Unemployment
Current (June 2014)
30.0
Projected (Q4 2015)
25.4
25.0
23.9
20.0
15.0
10.0
5.9 5.7
5.0
3.5
3.5
0.0
Source: OECD
6.5
5.9
7.5
7.1
Israel’s Labor Market Since 2000
Participation rate
Unemployment rate
Unemployment
rate
Participation rate
Source: TAUB Center
High Share of ICT in the Business
Sector
17.8
ICT= Information & Communications Technologies, 2008
2012 17.6%
13.9
13.0
12.2
10.4
9.9 9.6
9.0 9.0 8.8 8.8
8.2 8.2 8.1 7.8
7.2 7.1 7.1
6.7 6.4 6.3
6.2 5.9 5.8 5.7
5.7
3.7
Source: M.A.I, Economic research division analysis to ICBS
Source: Israel CBS
5.0
Foreign Direct Investments in Israel
Source: Economic research division analysis to BOI data and Globes magazine.
World Leadership in Civilian R&D
Investments
4.2%
As Percentage of GDP, 2012
4.0%
3.4%
3.4%
4.2%
3.5%
2.9%
2.8%
2012
2.3%
Israel
2.2%
1.7%
Korea
Source: OECD
Finland
Sweden
Japan
Germany
USA
France Australia Ireland
1.7%
UK
1.3%
1.3%
1.3%
Spain
New
Zealand
Italy
Israel ranks high in innovation and
investment
 Strength of investor protection (6)
 Inflation, annual % change (1)
 Soundness of banks (18)
 FDI and technology transfer (11)
 Nature of competitive advantage (8)
 Quality of scientific research institutions (3)
 PCT patents, applications/million pop (5)
Source: World Economic Forum GCI 2014-2015
Leading Indicators from the WEF Global
Competitiveness Index
Strength of investor
protection
0
Inflation, annual % change
20
40
Production process
sophistication
60
80
Israel
100
Cyprus Venture capital availability
Jordan
120
France
140
Nature of competitive
advantage
160
US
China
Soundness of banks
Availability of latest
technologies
Source: World Economic Forum GCI 2014-2015
FDI and technology
transfer
Firm-level technology
absorption
Innovation Indicators from the WEF Global
Competitiveness Index
Capacity for innovation
0
10
Quality of scientific
research institutions
20
30
40
50
Israel
60
Cyprus
70
Jordan
80
90
France
US
PCT patents,
applications/million pop
Company spending on R&D
China
University-industry
collaboration in R&D
Source: World Economic Forum GCI 2014-2015
Availability of scientists
and engineers
Gov’t procurement of
advanced tech products
Global R&D and Innovation Center
Israeli Innovation in Applications
Firewall (traffic filtering software) by Check
Point
Skype Technology (Voice over Internet
Protocol) by VocalTec
ICQ (instant messaging program) by
Mirabilis
Waze navigation + real-time traffic
analysis and reporting application
Viber (Instant Messaging &
Voice over Internet Protocol)
by Viber Media
Israeli Innovation in Defense
Hermes 900 (multi-payload unmanned
aerial vehicle) by Elbit Systems
Iron Dome (anti-rocket defense system) by
Rafael Advanced Defense Systems
Xaver (radar system that sees
through walls) by Camero
MUSIC (countermeasure against missiles for
civil aviation) by Elbit
Spike (anti-tank missile) by Rafael
Advanced Defense Systems
Israeli Innovation in Medicine
PillCam (capsule endoscopy) by Given
Imaging
ExAblate (device that destroys tumors
without surgery) by InSightec
ReWalk (leg braces for paragletics) by
Yokneam-based Argo Medical Technologies
Endopat (fingerprint device to measure
cardiac health) by Itamar Medical
Copaxone (immunomodulator drug for
treating multiple sclerosis) by Teva
Israeli Innovations in Other Fields
Flash Memory by MSystems (now owned by
SanDisk)
Advanced Driver Assistance System
by Mobileye
Epilady (Epilator) by Mepro, Kibbutz
HaGoshrim
Solar Window (solar power for
buildings) by Pythagoras Solar
Cherry Tomatoes (Tomaccio
tomatoes) by Prof. Keidar & Prof.
Rabinovitch, Hebrew University
Israeli Nobel Prize Winners
Daniel Kahneman (Economics), 2002
Avram Hershko (Chemistry), 2004
Aaron Ciechanover (Chemistry), 2004
Robert Aumann (Economics), 2005
Ada E. Yonath (Chemistry), 2009
Dan Shechtman (Chemistry), 2011
Arieh Warshel (Chemistry), 2013
Michael Levitt (Chemistry), 2013
Local Currency Exchange Rate
Compared to Main Competitors
Israel: A Sharp Revaluation Compared to Other Countries
Change in Local Currency Against US Dollar Aug 2012 ($=4.02 NIS) - May 2014 ($=3.42 NIS)
29%
10%
3%
-10% -10% -8%
-14%
-8%
-7%
-3%
-2%
-1%
7%
10%
7 Free Trade Agreements with 40 Countries
Allowing products to enter without duty
E.F.T.A
Switzerland, Norway,
Iceland, Liechtenstein
Canada
E.U.
(28 Countries)
U.S.A
Turkey
Ukraine
China
India
ISRAEL
Mexico
Panama
Colombia
MERCOSUR
Brazil, Argentina,
Uruguay , Paraguay
Negotiated / Considered
S. Korea
Evolution of the Israeli Export, 1980-2013
(in B$, Including diamonds and services)
Israeli Industrial Goods Export by
Continent 2013 (excl. diamonds)
European
Union
31.9%
$ 15.18 B
North America
23.6%
$ 11.21 B
Latin America
5.8%
$ 2.75 B
Rest of
Europe
9.5%
$ 4.5 B
Africa
2.9%
$ 1.35 B
Total : $ 64895.1 Billion
Asia
21%
$ 9.9 B
Rest of the
World
5.3%
$ 2.92 B
Industrial Goods Import by
Continent 2013 (excl. diamonds)
European
Union
34.4%
$ 21.6 B
North America
12.42%
$ 7.8 B
Latin America
1.76%
$1B
Rest of
Europe
9.4%
$ 5.9 B
Africa
0.46%
$ 0.3 B
Total : $ 64895.1 Billion
Asia
20.3%
$ 12.77 B
Rest of the
World
22%
$ 13.42 B
2013 Industrial Goods Export by Sectors
(excl. diamonds)
Other
4%
Prepared Foodstuffs
2%
Mineral Products
2%
Textile
2%
Chemical Products
35%
Vegetable Products
3%
Base Metal Articles
4%
Vehicles & Transport
Equipment
5%
Plastics & Rubber
5%
Optical & Photographic
Instruments
9%
Machinery & Electrical
Equipment
29%
2013 Industrial Goods Import by Sectors
(excl. diamonds)
Other
6%
Animal Products
2%
Mineral Products
24%
Miscelallaneous
Manufactured Articles
2%
Vegetable Products
3%
Optical & Photographic
Instruments
3%
Machinery & Electrical
Equipment
22%
Prepared Foodstuffs
3%
Textile
4%
Plastics & Rubber
5%
Base Metal Articles
6%
Vehicles & Transport
Equipment
10%
Chemical Products
10%
Top Export Destinations in EU 2013
(excl. diamonds)
Export
2013
2012
Change
Share
15184.5
14248.8
6.6%
100%
1. United Kingdom
3424.6
3134.7
9.2%
23%
2. Netherlands
2092.0
2244.9
-6.8%
14%
3. Germany
1736.6
1595.0
8.9%
11%
4. France
1336.5
1260.6
6.0%
9%
5. Spain
1250.7
1034.8
20.9%
8%
6. Italy
1132.6
1118.5
1.3%
7%
7. Cyprus
1125.2
900.1
25.0%
7%
8. Belgium
Others
735.9
2350.4
776.5
2183.7
-5.2%
7.6%
5%
15%
Total EU
Top Import Sources in EU 2013
(excl. diamonds)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Import
Total EU
Germany
Netherlands
Italy
United Kingdom
France
Belgium
Spain
Ireland
Sweden
Others
2013
21629.1
4662.8
2718.4
2681.9
2035.0
1535.8
1455.4
1377.3
935.2
636.2
3591.1
2012
22425.9
4618.6
2746.9
2768.5
2029.4
1640.9
1434.0
1199.6
1006.0
653.0
4329.0
Change
-3.6%
1.0%
-1.0%
-3.1%
0.3%
-6.4%
1.5%
14.8%
-7.0%
-2.6%
-17.0%
Share
100.0%
21.6%
12.6%
12.4%
9.4%
7.1%
6.7%
6.4%
4.3%
2.9%
16.6%
Top Export Destinations to EU 2013
(excl. diamonds)
Other EU Members
15%
United Kingdom
24%
Belgium
5%
Cyprus
7%
Netherlands
14%
Italy
7%
Spain
8%
Germany
11%
France
9%
Top Import Sources in EU 2013
(excl. diamonds)
Germany
22%
Others
17%
Sweden
3%
Ireland
4%
Netherlands
13%
Spain
6%
Belgium
7%
France
7%
United Kingdom
9%
Italy
12%
Industrial Goods Export to Cyprus 2013
(excl. diamonds)
Mineral
Products
13%
Chemical
Products
83%
Other
4%
Industrial Goods Import from Cyprus 2013
(excl. diamonds)
Miscellaneous
manufactured
articles
17%
Mineral
Products
53%
Machinery &
Electric
Equipment
7%
Animal Products
4%
Other
19%
Thank you!
Toda Raba!
Dan Catarivas
Manufacturers Association of Israel (MAI)
danc@industry.org.il