Norwegian manufacturing in 2015

Production in Norwegian manufacturing decreased by 3.5 per cent from 2014 to 2015. This is in strong contrast to the 3.3 per cent increase from 2013 to 2014. Lower investment activities in the North Sea and falling oil prices have affected production in the petroleum-related supplier industries, especially the ships, boat and oil platforms industry. A 17 per cent fall in this industry is the main cause of the total decline in manufacturing production in 2015.

Apart from the suppliers to the oil and gas sector industries, 11 out of 15 industries showed a decline in 2015 compared with 2014. Only three industries had growth during this period: wood and wood products; the grouping refined petroleum products, basic chemicals, and chemical and pharmaceutical products; and transport equipment.¹

In terms of production development in Sweden and Denmark compared with Norway, both countries had growth from 2014 to 2015, with 3.3 and 2.3 per cent respectively. A comparison of Norway with euro zone countries shows a 2.6 per cent decline in production in the euro zone from 2014 to 2015.

Other key indicators of developments in the manufacturing industry also showed a decline from 2014 to 2015. Investment in manufacturing edged down 5.5 per cent from 2014 to 2015. Lower investments in the food, beverage and tobacco industry contributed most to the decline. Moreover, the total turnover in manufacturing also decreased by 1.4 per cent. A 3.1 per cent growth in the export market was not enough to offset a 4.4 per cent decline in the domestic market. Employment in the manufacturing sector also went down 2.2 per cent in this period.

The recruitment of contract workers in manufacturing production edged down 19 per cent from 2014 to 2015. A significant part of the decline is due to a reduction in activity levels among suppliers to the oil and gas sector industries, which are the largest employers of contract workers. A falling investment rate in the North Sea since the end of 2013 has led to a drop in activities among these industries, and in such difficult times it is the contract workers who are the first to lose out.

¹ The paragraph was corrected on 13 September 2016.