Presidium of Israeli Business Organizations Manufacturers - - PowerPoint PPT Presentation

Dan Catarivas Manufacturers Association of Israel (MAI)

The Cyprus Investors Show 2015

November 2014

Presidium of Israeli Business Organizations

• 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

• rganization

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”

President

Jerusalem Branch Southern Branch Haifa Branch

Director General

Small & Medium Factories Labor & HR Finance &

Administration

Economic Research

Communications

Foreign Trade & International Relations

Economy & Regulatory Policy

Environment &

Health

D i v i s i o n s

Electronics, Information & Software Industries Building Materials & Consumer Goods Chemicals, Pharmaceutics & Cleantech Metal, Electrical & Infrastructure Industries

Food Industries Textile & Fashion Industries Kibbutz Industries

S u b - A s s o c i a t i o n s

Manufacturers Association of Israel (MAI)

• 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 2013 Facts & Figures

The Israeli Economy

Main Characteristics

E

xport Orie nte d Growth

Adva nc e d T

e c hnolog y Orie nte d

Hig h Skille d Huma n Ca pita l E

ntre pre ne uria l Culture

Inc e ntive s for R&D & Inve stme nt

A High Growth Developed Economy

Growth in Selected Developed Economies 2013-2014

Source: OECD

• 2
• 1

1 2 3 4

4.0 3.2 3.2 2.8 2.6 2.6 2.5 2.2 1.9 1.4 1.2 1.0 0.9 0.5 3.0 3.4 1.7 1.5 2.4 1.9 2.0 1.3 0.5 0.4 1.5

• 1.2

0.3

• 1.8

2014 2013

A High Growth Developed Economy

Average Growth in Selected Developed Economies 2009-2013 & 2014-2015

Sources: OECD, European Commission

• 0.2

0.3 0.9 1.2 3.5 1.8 1.2 2.5 3.0 3.4

• 0.5

0.5 1 1.5 2 2.5 3 3.5 4

EU Japan OECD US Israel

2009-2013 2014-2015 Projected

Relatively Low Government Deficit in Israel

9

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%2.1% 1.5%1.4% 1.3%0.9% 0.3%

As Percent of GDP, 2013

Source: OECD & BOI

Relatively Young Population

Source: CIA Factbook

18.1 22.6 25.5 27.7 29.7 37.2 38.8 40.3 40.6 40.6 41.3 41.4 41.5 41.8 44.2 45.7 45.8

5 10 15 20 25 30 35 40 45 50

Median Age in Years - Country Comparison

Relatively Low Unemployment

Source: OECD

3.5 5.9 6.5 7.5 25.4 3.5 5.7 5.9 7.1 23.9 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Current (June 2014) Projected (Q4 2015)

Participation rate

Participation rate

Unemployment rate

Unemployment rate

Israel’s Labor Market Since 2000

Source: TAUB Center

High Share of ICT in the Business Sector

ICT= Information & Communications Technologies, 2008

Source: Israel CBS 17.8 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 5.0 3.7

2012 17.6%

Source: M.A.I, Economic research division analysis to ICBS

Foreign Direct Investments in Israel

Source: Economic research division analysis to BOI data and Globes magazine.

World Leadership in Civilian R&D Investments

Source: OECD

4.2% 4.0% 3.5% 3.4% 3.4% 2.9% 2.8% 2.3% 2.2% 1.7% 1.7% 1.3% 1.3% 1.3% Israel Korea Finland Sweden Japan Germany USA France Australia Ireland UK Spain New Zealand Italy

As Percentage of GDP, 2012

2012 4.2%

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

20 40 60 80 100 120 140 160

Strength of investor protection Inflation, annual % change Venture capital availability Soundness of banks Availability of latest technologies Firm-level technology absorption FDI and technology transfer Nature of competitive advantage Production process sophistication Israel Cyprus Jordan France US China Source: World Economic Forum GCI 2014-2015

10 20 30 40 50 60 70 80 90

Capacity for innovation Quality of scientific research institutions Company spending on R&D University-industry collaboration in R&D Gov’t procurement of advanced tech products Availability of scientists and engineers PCT patents, applications/million pop Israel Cyprus Jordan France US China

Innovation Indicators from the WEF Global Competitiveness Index

Source: World Economic Forum GCI 2014-2015

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 Spike (anti-tank missile) by Rafael Advanced Defense Systems MUSIC (countermeasure against missiles for civil aviation) by Elbit

Israeli Innovation in Medicine

ReWalk (leg braces for paragletics) by Yokneam-based Argo Medical Technologies PillCam (capsule endoscopy) by Given Imaging Endopat (fingerprint device to measure cardiac health) by Itamar Medical Copaxone (immunomodulator drug for treating multiple sclerosis) by Teva ExAblate (device that destroys tumors without surgery) by InSightec

Israeli Innovations in Other Fields

Flash Memory by M- Systems (now owned by SanDisk) Epilady (Epilator) by Mepro, Kibbutz HaGoshrim Cherry Tomatoes (Tomaccio tomatoes) by Prof. Keidar & Prof. Rabinovitch, Hebrew University Solar Window (solar power for buildings) by Pythagoras Solar Advanced Driver Assistance System by Mobileye

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

• 14%
• 10% -10%
• 8%
• 8%
• 7%
• 3%
• 2%
• 1%

3% 7% 10% 10% 29%

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)

ISRAEL

7 Free Trade Agreements with 40 Countries

Allowing products to enter without duty

Canada U.S.A Mexico

Turkey

E.F.T.A

Switzerland, Norway, Iceland, Liechtenstein

MERCOSUR

Brazil, Argentina, Uruguay , Paraguay

E.U.

(28 Countries)

India Colombia China

• S. Korea

Negotiated / Considered

Panama Ukraine

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 Rest of Europe 9.5% $ 4.5 B Asia 21% $ 9.9 B Africa 2.9% $ 1.35 B North America 23.6% $ 11.21 B Latin America 5.8% $ 2.75 B Rest of the World 5.3% $ 2.92 B

Total : $ 64895.1 Billion

Industrial Goods Import by Continent 2013 (excl. diamonds)

European Union 34.4% $ 21.6 B Rest of Europe 9.4% $ 5.9 B Asia 20.3% $ 12.77 B Africa 0.46% $ 0.3 B North America 12.42% $ 7.8 B Latin America 1.76% $ 1 B Rest of the World 22% $ 13.42 B

Total : $ 64895.1 Billion

2013 Industrial Goods Export by Sectors

Chemical Products 35% Machinery & Electrical Equipment 29% Optical & Photographic Instruments 9% Plastics & Rubber 5% Vehicles & Transport Equipment 5% Base Metal Articles 4% Vegetable Products 3% Mineral Products 2% Textile 2% Prepared Foodstuffs 2% Other 4%

(excl. diamonds)

2013 Industrial Goods Import by Sectors

Mineral Products 24% Machinery & Electrical Equipment 22% Chemical Products 10% Vehicles & Transport Equipment 10% Base Metal Articles 6% Plastics & Rubber 5% Textile 4% Prepared Foodstuffs 3% Optical & Photographic Instruments 3% Vegetable Products 3% Miscelallaneous Manufactured Articles 2% Animal Products 2% Other 6%

(excl. diamonds)

Top Export Destinations in EU 2013

(excl. diamonds) Export 2013 2012 Change Share Total EU 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

735.9 776.5

• 5.2%

5% Others 2350.4 2183.7 7.6% 15%

Top Import Sources in EU 2013

(excl. diamonds) Import 2013 2012 Change Share Total EU 21629.1 22425.9

• 3.6%

100.0%

• 1. Germany

4662.8 4618.6 1.0% 21.6%

• 2. Netherlands

2718.4 2746.9

• 1.0%

12.6%

• 3. Italy

2681.9 2768.5

• 3.1%

12.4%

• 4. United Kingdom

2035.0 2029.4 0.3% 9.4%

• 5. France

1535.8 1640.9

• 6.4%

7.1%

• 6. Belgium

1455.4 1434.0 1.5% 6.7%

• 7. Spain

1377.3 1199.6 14.8% 6.4%

• 8. Ireland

935.2 1006.0

• 7.0%

4.3%

• 9. Sweden

636.2 653.0

• 2.6%

2.9% Others 3591.1 4329.0

• 17.0%

16.6%

Top Export Destinations to EU 2013

(excl. diamonds)

United Kingdom 24% Netherlands 14% Germany 11% France 9% Spain 8% Italy 7% Cyprus 7% Belgium 5% Other EU Members 15%

Top Import Sources in EU 2013

(excl. diamonds)

Germany 22% Netherlands 13% Italy 12% United Kingdom 9% France 7% Belgium 7% Spain 6% Ireland 4% Sweden 3% Others 17%

Chemical Products 83% Mineral Products 13% Other 4%

Industrial Goods Export to Cyprus 2013

(excl. diamonds)

Industrial Goods Import from Cyprus 2013

(excl. diamonds)

Mineral Products 53% Miscellaneous manufactured articles 17% Machinery & Electric Equipment 7% Animal Products 4% Other 19%

Thank you! Toda Raba!

Dan Catarivas

Manufacturers Association of Israel (MAI)

danc@industry.org.il