Article by: Tina Jindal and not by BerkeleyCuts
Many countries are vying to recover from the Great depression of the 20th century (1930 – 1940) and overcome the turmoil generated over the extreme financial and economic meltdown. Europe needs to take efficient and critical decisions in order to address the impediments that are hampering economic development.
However, between all the fire-fighting there are certain industrial sectors of Europe that have managed to maintain a stable structure throughout. Even though Europe seems to be stuck in an economic rut, there are several industries that have contributed to its high economic activities by generating bulk employment opportunities.
According to a report published by the European Commission in 2005, EU was the world’s largest automobile manufacturing region at that time. The report also stated that 34% of the world’s vehicles were manufactured in Europe and that EU had a 7.6% share in the manufacturing sector, with the industry employing more than 12 million people. Some of the big European automotive industries are Volkswagen, Aston Martin, Mercedes-Benz, Jaguar, Ferrari, BMW, and Lamborghini.
In 2008 there was a financial meltdown, which affected the automobile industry in a big way. Since then it has struggled to grow and revive at a constant pace. The global production of automobiles grew by 25 million units from 2009-2013 due to rapid economic recovery and an increased demand for vehicles by consumers who now had greater confidence and purchasing power.
It has been estimated that the production of cars will grow by 21 million units by 2021 because of the demands from the developing market of China and the reviving automobile industry of Europe.
Europe intends to recover its domestic demand and increase its exports to China and US in order to stimulate its automobile industry. It has been estimated that the European output will increase by 4% from 2015 to 2017 as opposed to just 1% in 2014. The automotive testing expo in June 2015, at Messe Stuttgart, Germany, will surely add to what this industry is all about.
Europe is a leader in the production of pharmaceuticals. 27% of the global production comes from here, with Germany on the top, followed by Italy, France, and UK. The European pharmaceutical industry spends over EUR 75 billion on R&D every year. It is influenced majorly by societal expectations, healthcare powerplay, governmental policies, and innovation potential, and industry moves.
The European pharmaceutical company contributes to the economy of Europe, not only in financial terms but also through employment opportunities. The global pharma market varies from $870 – $900 billion. In Europe it is $260 – $280 billion with Spain dominating the market with a share of 88% value wise. In 2011, Spain had a market size of about $22.7 billion making it the fourth largest pharmaceutical market in Europe.
During 2007-2011, the Spanish market had a CAGR of about 4.4%. The revenue in 2010 was $2.2 billion, which is expected to touch $7.19 billion by 2017 at a CAGR of about 18.4%. The main pharmaceutical companies in Spain are Almirall, Esteve, Cinfa Laboratories, Zeltia, Universities and Associations like Spanish Society of Pharmaceutics and Pharmaceutical Technology, Society of Hospital Pharmacists of Valencia, Spanish Society of Clinical Pharmacology, FARMAINDUSTRIA and Spanish Association for the Pharmaceutical Industry.
3.Aerospace and defence industry
The aerospace and defence industry of Europe witnessed a phenomenal growth in 2011. The main reasons for this development included the improvement of economy, increasing demands for aircrafts from China and India, and the arrival of low-cost carriers. This industry has emerged as a potential market even after recession.
According to the “Global Aerospace and Defence” report on Research and Markets, in 2010, the aerospace and defence market had revenue of $1,070.6 billion. This represented a compound annual growth rate (CAGR) of about 6.6% from 2006 to 2010. The defence segment alone harvested a total revenue of $791.3 billion, which is about 74.2% of the markets overall value.
It has been estimated that this industry will witness a CAGR of 2.5% during 2010-2015 with total revenue reaching almost $1,204.2 billion.
4.Oil & Gas industry
2015 is expected to bring tightened gas supplies and higher oil prices for Europe. This will in turn bring a sharp price drop. Imports of LNG increased by 11 billion cubic meters (bcm) in 2009 and by 18 bcm in 2010. Long-distance pipeline gas (LDPG) incurred a loss of 10 bcm between 2008 and 2010, representing a loss in market share by about 2%. It goes without saying that 2015 will be a crucial turning point for the European market.
The annual growth rate of the gas industry is 1.7%. According to a report by IEA, the gas consumption increased from 513 billion m3 in 2012 to 525 billion m3 in 2018. The report also stated that the high price of gas as compared to coal and the decreased price of carbon will adversely affect the consumption of gas from 2013 – 2018.
According to the UKPIA, the growth in the demand of oil is expected to increase slightly after 2015, chiefly in the southern European countries as they have greater prospects of economic growth.
EU has recently announced to fund education in developing countries for the next seven years with the help of Global Partnership for Education (GPE). The commissioner of EU said that EUR 375 million will be contributed towards the growth of education across 60 countries where GPE currently works.
Between 2014 and 2020 EU will fund education up to EUR 4.5 billion. Due to this support, up to 2012, 7.7 million people got vocational and technical education and training, about 1.2 million primary teachers were trained, 37,000 new schools got built, and 13.7 million children achieved primary education.
Several foreign nationals too have migrated to Europe in search of quality and affordable education. Modern facilities and exceptional infrastructure of Europe beckons international students to come enhance their academic qualifications by studying in its colleges and universities. Applying to any university is not very difficult, and relevant information can be obtained on any online portal.
Advice from BerkeleyCuts
- Let your kids decide what they want to do, but as parent give them guidance, and tell them why you sometimes want them to do something more corporate over something “Arty” and be open-minded. Do your homework and look ahead into the future what industries are growing and what positions will be created due to the Technology Industry.
Extra Activities for Kids is a Big Plus.