OPERATIONS OF FOREIGN COMPANIES IN THE NETHERLANDS IN 2004 Stec Groep for Netherlands Foreign Investment Agency Ministry of Economic

Affairs

Stec Groep B.V. May 2005

TABLE OF CONTENTS
1. INTRODUCTION 1.1 Operations of foreign companies in the Netherlands 1.2 The construction of the database 1.3 The contents of this report OPERATIONS OF FOREIGN COMPANIES BY COUNTRY OF ORIGIN IN 2004 OPERATIONS OF FOREIGN COMPANIES BY TYPE OF OPERATION IN 2004 OPERATIONS OF FOREIGN COMPANIES BY SECTOR IN 2004 REGIONAL OUTLOOK IN 2004 FOCUS ON MANUFACTURING INDUSTRY (‘MAAKINDUSTRIE’) IN 2004 1 1 2 3 4 12 15 17 21 30 31 32

2. 3. 4. 5. 6.

APPENDIX A: SOURCES APPENDIX B: DEFINITIONS: OPERATIONS APPENDIX B: DEFINITIONS: SECTORS

1. INTRODUCTION
1.1 Operations of foreign companies in the Netherlands
The main task of the Netherlands Foreign Investment Agency (NFIA) is to facilitate and attract direct investments of foreign companies to the Netherlands. For effective promotion of the Dutch investment climate towards these (potential) investors, a solid and actual overview of all operations of foreign companies operating in the Netherlands is essential. Being the national knowledge center for investment promotion, NFIA wants to be able to answer all kinds of questions asked in this field. For example: how many Asian or US companies are established in the Netherlands? Where are they located? How many jobs do these companies create? To answer these types of questions, the database ‘Operations of foreign companies in the Netherlands’ is set up by the Stec Groep – on behalf of the NFIA – since 2002. In this database, figures are available to answer how many foreign companies are located in the Netherlands, the types of operations involved, the sectors which foreign companies operate in, the regions where these companies are located, et cetera. This unique database is built up from scratch from a variety of resources (see appendix A) and will be monitored and updated annually at least until 2006. The results up to the end of 2004 are presented in this report.

Operations of foreign companies in the Netherlands in 2004 Stec Groep for NFIA/Ministry of Economic Affairs G-175/3.5.493

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1.2 The construction of the database
Main focus of the database is to provide a good, complete overview of all operations of foreign companies in the Netherlands, including the total number of jobs involved. Several definitions and restrictions were used in constructing the database: • A company is considered foreign when at least 50% of the shares of the facility/company established in the Netherlands is owned by a foreign company; • Involved are operations of foreign companies that are of a reasonable size, only operations employing at least 5 fte’s (fulltime equivalents) at the time of survey are listed in the database; • When foreign companies own several facilities in the Netherlands these facilities are seen as separate operations; • Operations in retail, tourism, hotel/restaurant branche and non-profit are not included; • For each operation in the database the following facts are collected: company name and address, main type of operation(s)/activity, sector, number of jobs, name of parent company/companies and the country of origin. Several parties in the Netherlands (see appendix A) – mostly partners of NFIA – provided (part of) their current databases. These databases were all cleaned, checked and put into a similar format. In addition, new data on companies not yet listed were gathered via other sources such as Embassies, Chambers of Commerce, press releases, (business) magazines and internet. Furthermore, data were checked by contacting the firms, either by telephone, e-mail or fax. Also company databases such as ABC and Axyla Insight were used to gather additional facts on operations. Over 5,000 operations are now listed in the database1. Exact numbers can be found in chapter two and further. Overall, the number of operations is comparable to the 2002 and 2003 figures. Every year – on behalf of NFIA – a different aspect of the foreign companies in the Netherlands is highlighted. This can be a sector, a type of operation, a country of origin or a region. In 2002 focus was on the IT sector, whereas
1

Compared to figures based on earlier databases of foreign companies this number might seem low. Both Buck Consultants International and the University of Maastricht stated a figure of around 7,000 operations at the end of the nineties. This can be explained by the fact that these databases also involved companies employing less than five fte’s.

Operations of foreign companies in the Netherlands in 2004 Stec Groep for NFIA/Ministry of Economic Affairs G-175/3.5.493

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2003 focused on the logistics sector. In this report over 2004 special focus will be on the manufacturing industry (‘maakindustrie’).

1.3 The contents of this report
Besides the introduction, this report contains five chapters, each of which focuses on a different aspect of foreign companies in the Netherlands. Chapter two focuses on the foreign operations by county of origin. In chapter three you will read about types of operations or main activities performed by the operations of foreign companies in the Netherlands. Chapter four provides an insight into the sectors these companies are operating in, whereas chapter five gives the regional outlook of foreign investment in the Netherlands. Finally chapter six focuses on the manufacturing industry. In addition, background information on definitions and sources used for this report can be found in the appendices A and B.

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2. OPERATIONS OF FOREIGN COMPANIES BY COUNTRY OF ORIGIN IN 2004
Table 1: Number of operations and number of jobs of foreign companies by continent/region
Continent/Region Europe - Germany - United Kingdom - Scandinavia3 - Europe (other)4 North America - United States - Canada Asia5 - Japan - Taiwan - Korea - China - Other6 Other9 Total
2

Number of operations Abs. 3,045 982 707 370 986 1,663 1,600 63 5247 312 93 37 27 55 73 5,305 Rel. 57% 19% 13% 7% 19% 31% 30% 1% 10%

Number of jobs Abs. 320,398 69,849 93,703 42,882 113,964 184,305 178,561 5,744 36,7158 25,512 2,561 1,018 3,130 4,494 7,026 548,444 Rel. 58% 13% 17% 8% 21% 34% 33% 1% 7%

Average size 105 71 133 115 116 111 112 91 70

1% 100%

1% 100%

96 103

Source: Stec Groep, 2004

A detailed outlook of Europe is given in figure 3 and 4, page 8. Includes: Sweden (170), Denmark (82), Finland (66) and Norway (52). 4 Includes for instance: France (320), Belgium (236), Switzerland (189), Ireland (67), Italy (65), Austria (39), Spain (16) and Luxembourg (11). 5 A detailed outlook of Asia is given in figure 1 and 2, page 7. 6 Includes for instance: Israel (17) and Singapore (10). 7 Asia contains Japan (5.9% of the total number of operations), Taiwan (1.8%), Korea (0.7%), China (0.5%) and Other (1.0%). 8 Asia contains Japan (4.7% of total direct employment), Taiwan (0.5%), Korea (0.2%), China (0.6%) and Other (0.8%). 9 South-America (19), Africa (14) and Australia (7) as well as companies that have (equal) shareholders from two countries or more, such as jointventures (33).
3

2

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Summary • • There are more than 5,300 operations of foreign companies established in the Netherlands, creating almost 550.000 jobs. Compared with 2003 there has been an increase of 4% in number of operations (5,101 in 2003 versus 5,305 in 2004) and 6% in number of jobs (518,620 in 2003 versus 548,444 in 2004). This increase is mainly caused by take-overs/mergers of large Dutch companies by a foreign company. A major part (57%) of the operations of foreign companies is European. European operations are also the important contributor in number of jobs; nearly 60% of the jobs created is European. Over 30% of the operations of foreign companies originate from North America. These operations create 34% of the total number of jobs in the Netherlands. Asia accounts for 10% of the total number of operations of foreign companies in the Netherlands and 7% of the total number of jobs created. Asian operations are relatively small-sized (average size around 70 employees) compared to overall European operations10 and North American operations.

• • • •

10

There are of course differences in average size between individual European countries.

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Table 2: Number of operations and number of jobs of foreign companies by country, top 10
Country 1 United States 2 Germany 3 United Kingdom 4 France 5 Japan 6 Belgium 7 Switzerland 8 Sweden 9 Taiwan 10 Denmark Source: Stec Groep, 2004 Number of operations Abs. 1,600 982 707 320 312 236 189 170 93 82 Rel. 30% 19% 13% 6% 6% 4% 4% 3% 2% 2% Number of jobs Abs. 178,561 69,489 93,703 62,168 25,512 18,717 18,706 14,428 2,561 14,857 Rel. 33% 13% 17% 11% 5% 3% 3% 3% 0,5% 3% 112 71 133 194 82 79 99 85 28 181 Average size

Summary • The United States is the number one contributor in number of operations and jobs of foreign companies: 30% of the operations of foreign companies in the Netherlands originate from the United States. These 1,600 operations create 33% of the total number of jobs. Germany ranks second in number of operations of foreign companies in the Netherlands (19% of total), United Kingdom ranks third (13%) and France fourth (6%). In number of jobs United Kingdom ranks second (17%) after the United States (33%). Germany creates 13% of foreign jobs in the Netherlands (third place) and France 11% (fourth place). Japan is the largest contributor from Asia, and ranks as the 5th country in number of operations (312 operations) and number of jobs (over 25,000). Taiwan ranks 9th in number of operations, but these operations create a relatively small amount of jobs. French (194) and Danish operations (181) are very large in average size compared to the overall size of operations of foreign companies in the Netherlands (103)11.
A few large-sized companies are responsible for this.

• • •

11

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Figure 1: Number of operations of companies from Asia (%) (N=524)
10% 5% 7% Japan Korea China 18% Other (n=312) 3% Taiwan (n=93) (n=37) (n=27) (n=55)
7%

Figure 2: Number of jobs of operations from Asia (%) (N=36,715)
12%

60%
9% Japan (n=25,512) Taiwan (n=2,561) Korea (n=1,018) China (n=3,130) Other (n=4,494) 69%

Source: Stec Groep, 2004 Summary • • •

Source: Stec Groep, 2004

Japan is by far the largest supplier of Asian operations (60%), followed by Taiwan (18%) and Korea (7%). In number of jobs Japan is also the largest contributor for Asia (69%), followed by Taiwan (7%) and Korea (3%). China accounts for 5% of operations of foreign companies from Asia and 9% in the number of Asian jobs.

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Figure 3: Number of operations of foreign companies from Europe (%) (N=3,045)
12% 3% 32% 6% Germany (n=982) United Kingdom (n=707) France (n=320) Belgium (n=236) Switzerland (n=189) 8% Sweden (n=170) Denmark (n=82) 23% Other (n=359)
6% 5% 6%

Figure 4: Number of jobs of operations from Europe (%) (N=320,398)
8% 5% 22% Germany (n=69,489) United Kingdom (n=93,703) France (n=62,168) Belgium (n=18,717) Switzerland (n=18,706) Sweden (n=14,428) 29% 19% Denmark (n=14,857) Other (n=28,330)

6%

10%

Source: Stec Groep, 2004

Source: Stec Groep, 2004

Summary • • • • Nearly 60% of the European operations is from Germany (32%) and the UK (23%). Third contributor is France, followed by Belgium, Switzerland and Sweden. In number of jobs of European operations United Kingdom stands out (29%), followed by Germany (22%) and France (19%). The share of French operations is only 10% of the total number of European operations. In number of jobs French operations account for 19% of total number of European jobs. Sweden (170 operations) is the main contributor from Scandinavia (see also table 1, page 4), with a share of over 45% of Scandinavian operations (total Scandinavian operations is 370). In number of jobs Sweden as well as Denmark are the main suppliers for Scandinavia, together these countries create nearly 70% of the total Scandinavian jobs (total Scandinavian jobs is 42,882).

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Table 3: Top 10 largest operations by number of jobs: US companies12
Company 1 2 3 4 5 6 7 8 9 10 DAF Trucks / Paccar Hewlett-Packard Ernst & Young Dow Benelux Philip Morris General Electric Plastics Hewlett-Packard Cordis UPC DE / Sara Lee Location Eindhoven Utrecht Amsterdam Terneuzen Bergen op Zoom Bergen op Zoom Amstelveen Roden Schiphol Utrecht Main activity Manufacturing/assembly Sales/marketing/ consultancy Sales/marketing/consultancy Manufacturing/ assembly Manufacturing/assembly Manufacturing/ assembly Sales/marketing/consultancy Manufacturing/ assembly Headquarters Headquarters Sector Automotive IT Business services Chemicals (Luxury) Food Plastics IT Life sciences IT (Luxury) Food

Source: Stec Groep, 2004

Please note that names listed in tables 3, 4 and 5 refer to the number of jobs per individual operation, not to the number of employees of all operations present in the Netherlands, owned by the same foreign company. Therefore different operations of the same foreign company can be listed in the top 10 (for instance Hewlett-Packard in table 3, KLM/Air France in table 5).
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Table 4: Top 10 largest operations by number of jobs: Asian companies
Company 1 2 3 4 5 6 7 8 9 10 Nedcar ECT Delta Fuji Photo Film Flextronics Fujitsu Services Teijin Twaron Sony Benelux Nippon Express Canon Europe Sony Logistics Location Born Rotterdam Tilburg Venray Maarssen Emmen Badhoevedorp Schiphol Amstelveen Tilburg Main activity Manufacturing/assembly Distribution Manufacturing/assembly Distribution Headquarters Manufacturing/assembly Wholesale Distribution Wholesale Distribution Sector Automotive Logistics Graphics Electronics IT Plastics Electronics Logistics Electronics Electronics Country Japan China Japan Singapore Japan Japan Japan Taiwan Japan Japan

Source: Stec Groep, 2004

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Table 5: Top 10 largest operations by number of jobs: European companies13
Company 1 2 3 4 5 6 7 8 9 10 Corus KLM / Air France ISS KLM / Air France Cap Gemini Ernst & Young PCM / Apax Partners Atos Origin Delta Lloyd P&O North Sea Ferries Thales Nederland Location IJmuiden Amstelveen Amsterdam Amstelveen Utrecht Amsterdam Utrecht Amsterdam Rozenburg Hengelo Main activity Headquarters Headquarters Other Sales/marketing/consultancy Headquarters Headquarters Headquarters Sales/marketing/consultancy Distribution Manufacturing/assembly Sector Metal Logistics/Aerospace Business services Logistics/Aerospace IT Graphics IT Financial services Logistics Machines & appliances Country United Kingdom France Denmark France France United Kingdom France United Kingdom United Kingdom France

Source: Stec Groep, 2004

The operations of KLM/Air France and PCM/Apax Partners are new European operations by take-over/merger by a foreign company.
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3. OPERATIONS OF FOREIGN COMPANIES BY TYPE OF OPERATION IN 2004
Table 6: Number of operations and number of jobs of foreign companies by type of operation14
Type of operation Manufacturing/assembly Sales/marketing/consultancy Wholesale Distribution Headquarters Research & Development Shared services center Call center Data center Other15 Total Source: Stec Groep, 2004 Number of operations Abs. Rel. 1,392 1,329 1,126 596 415 98 30 29 14 276 5,305 26% 25% 21% 11% 8% 2% 0,6% 0,5% 0,3% 5% 100% Number of jobs Abs. 195,872 107,264 47,328 58,758 92,909 6,453 5,023 5,231 1,232 28,374 548,444 Average size Rel. 141 81 42 99 224 66 167 180 88 103 103

36% 20% 9% 11% 17% 1% 1% 1% 0,2% 5% 100%

For a more detailed description of the different types of operation, please check appendix B (Definitions), page 31.

14 15

The type of operation is defined as the main activity of the company. Includes for instance: training centers, consulting agencies, service support and holding companies.

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Figure 5: Number of operations of foreign companies by type of operation (%) (N=5,305)
Manufacturing/assembly (n=1,392) Sales/marketing/consultancy (n=1,329) Wholesale (n=1,126) Distribution (n=596)

Figure 6: Number of jobs of operations of foreign companies by type of operation (%) (N=548,444)
1,0%0,2% 5,2%
Manufacturing/assembly (n=195,872) Sales/marketing/consultancy (n=107,264) Wholesale (n=47,328)

0,6% 1,8% 7,8%

0,5% 0,3%

5,2% 26,2%

0,9% 1,2%

16,9%

35,7%

Distribution (n=58,758) Headquarters (n=92,909) R&D (n=6,453) Shared services center (n=5,023) Call center (n=5,231)

11,2%

Headquarters (n=415) R&D (n=98) Shared services center (n=30) 10,7% Call center (n=29)

21,2%

25,1%

Data center (n=14) Other (n=276)

8,6% 19,6%

Data center (n=1,232) Other (n=28,374)

Source: Stec Groep, 2004

Source: Stec Groep, 2004

Summary • • • Manufacturing/assembly (26%), sales, marketing and consultancy (25%) and wholesale (21%) account for almost 75% of the total number of foreign operations in the Netherlands. Over 35% of the jobs is created by manufacturing/assembly operations of foreign companies, followed by sales, marketing and consultancy (20%) and headquarters (17%). There is a relatively low number of jobs in wholesale compared to the total number of operations of

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• • •

foreign companies in wholesale; wholesale operations are relatively small-sized. There is a small number of R&D-operations (nearly 2%) and jobs (1%) in the Netherlands. The share of back office activities – call centers, shared services centers and datacenters – is low both in number of operations (nearly 1,5%) and in number of jobs (2%). Large-scale operations are to be found amongst headquarters (224)16, call centers (180), shared services centers (167) and manufacturing/assembly (141).

Long-established headquarters are overall larger in size than new establishments of foreign headquarters in the Netherlands.
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4. OPERATIONS OF FOREIGN COMPANIES BY SECTOR IN 2004
Table 7: Number of operations and number of jobs of foreign companies by sector
Sector IT Machines & appliances Logistics17 Business services Electronics Chemicals (Luxury) Food Metal Life sciences Construction Automotive Financial services Plastics Textile Paper & cardboard Graphics Office supplies Energy Industry other18 Other19 Total Source: Stec Groep, 2004 Number of operations Abs. Rel. 591 11% 561 11% 507 10% 433 8% 376 7% 311 6% 285 5% 284 5% 264 5% 232 4% 156 3% 144 3% 118 2% 107 2% 88 2% 70 1% 62 1% 49 1% 560 11% 107 2% 5,305 100% Number of jobs Abs. Rel. 73,922 13% 39,127 7% 61,658 11% 53,082 10% 28,136 5% 33,343 6% 40,437 7% 35,820 7% 18,080 3% 15,311 3% 25,193 5% 19,771 4% 16,453 3% 8,500 2% 11,262 2% 12,272 2% 3,308 1% 5,595 1% 34,769 6% 12,405 2% 548,444 100% Average size 125 70 122 123 75 107 142 126 68 66 161 137 139 79 128 175 53 114 62 116 103

Includes also KLM/Air France. Includes for instance: a large group of (specialised) wholesale and trading companies as well as companies operating in furniture and recycling for example. 19 Includes for instance: tour operators, producers of sprinkler systems and music companies.
18

17

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Table 8: Top 5 sectors of operations of foreign companies
Ranking 1 2 3 4 5 In absolute number of jobs IT Logistics Business services (Luxury) Food Machines & appliances 73,922 61,658 53,082 40,437 39,127 In absolute number of operations IT Machines & appliances Industry other Logistics Business services 591 561 560 507 433 In average size Graphics Automotive (Luxury) food Plastics Financial services 175 161 142 139 137

Source: Stec Groep, 2004

Summary • • • • IT (13%) and logistics (11%) together account for over 20% of the number of jobs in operations of foreign companies. IT stands out both in number of jobs (13%) as in number of operations (11%). The life sciences sector already accounts for more than 18,000 jobs (ranks 12th out of 20), created by 264 companies. The number of jobs in the logistics sector has grown significantly since 2003, because of the large takeover of KLM by Air France. Also in the graphics sector the number of jobs increased, mainly caused by the take-over of PCM by Apax (United Kingdom).

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5. REGIONAL OUTLOOK IN 2004
Table 9: Number of operations and number of jobs of foreign companies by province
Province North Holland South Holland North Brabant Utrecht Gelderland Limburg Overijssel Groningen Flevoland Drenthe Friesland Zeeland20 Total Source: Stec Groep, 2004 Number of operations Abs. Rel. 1,303 890 830 797 496 312 267 112 109 81 68 40 5,305 25% 17% 16% 15% 9% 6% 5% 2% 2% 2% 1% 1% 100% Number of jobs Abs. 149,037 97,528 78,832 67,640 38,387 41,885 28,270 12,256 5,744 10,779 7,282 10,804 548,444 Average size Rel. 27% 18% 14% 12% 7% 8% 5% 2% 1% 2% 1% 2% 100% 114 110 95 85 77 134 106 109 53 133 107 270 103

20

The large average size for Zeeland is due to the presence of six very large employers among which is Dow.

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Figure 7: Number of operations of foreign companies by province (%) (N=5,305)
North Holland (25%) South Holland (17%) North Brabant (16%) Utrecht (15%) Gelderland (9%) Limburg (6%) Overijssel (5%) Groningen (2%) Flevoland (2%) Drenthe (2%) Friesland (1%) Zeeland (1%)

0

200

400

600

800

1.000

1.200

1.400

Source: Stec Groep, 2004

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Figure 8: Number of jobs of operations of foreign companies by province (%) (N=548,444)
North Holland (27%) South Holland (18%) North Brabant (14%) Utrecht (12%) Gelderland (7%) Limburg (8%) Overijssel (5%) Groningen (2%) Flevoland (1%) Drenthe (2%) Friesland (1%) Zeeland (2%)

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

Source: Stec Groep, 2004

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Summary • • • In the province North Holland most operations of foreign companies (1,303) and number of jobs (149,037) are created. This is over 25% of the total figure of the Netherlands. South Holland ranks second in number of jobs (18%) and number of operations (17%), North Brabant ranks third (14% and 16%), Utrecht is number four (12% and 15%). Some 73% of all operations of foreign companies are concentrated in four provinces; North Holland, South Holland, North Brabant and Utrecht, these four provinces also account for 71% of the total number of jobs. Limburg and Gelderland are more or less comparable in number of jobs created (both around 40.000 number of jobs). The northern provinces (Groningen, Drenthe and Friesland) have a low share of the total number of operations of foreign companies (5%) and the total number of jobs (5%). Zeeland ranks lowest in number of companies (40: 1%), Flevoland has the lowest number of jobs (5,744: 1%).

• • •

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6. FOCUS ON MANUFACTURING INDUSTRY (‘MAAKINDUSTRIE’) IN 2004
This chapter focuses on operations of foreign companies in the manufacturing industry (‘maakindustrie’). These operations are defined as: Operations with main activity manufacturing/assembly active in one of the following five sectors: (1) machines & appliances, (2) electronics, (3) metal, (4) plastics, (5) automotive21.

Table 10: Manufacturing industry: number of operations and number of jobs of foreign companies by sector
Type of sector in manufacturing industry (with main activity manufacturing/assembly) 1. Machines & appliances 2. Metal 3. Plastics 4. Electronics 5. Automotive Total manufacturing industry (‘maakindustrie’) Number of operations Abs. Rel. Number of jobs Abs. Average size Rel.

191 149 97 87 46 570

34% 26% 17% 15% 8% 100%

21,409 19,603 15,679 8,268 17,010 81,969

26% 24% 19% 10% 21% 100%

112 132 162 95 370 144

Source: Stec Groep, 2004 Summary • The manufacturing industry accounts for 11% of the total number of operations of foreign companies in the Netherlands (570) and is responsible for almost 82.000 jobs, some 15% of the total number of jobs. In 2003 559 operations were listed in the manufacturing industry, employing 80,617 people.

This definition is also used by the Ministry of Economic Affairs in the ‘Industry letter’ (October 2004), CBS, BOM and LIOF.
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21

• •

• •

41% of the total manufacturing/assembly operations of foreign companies in the Netherlands (see table 6, page 12) is active in manufacturing industry (570 out of 1,392). 60% of the operations of foreign companies active in manufacturing industry operate in the sector machines & appliances (34%) and metal (26%). Together these sectors create 50% of jobs in the manufacturing industry in the Netherlands. Third sector in number of jobs is automotive (21% of total jobs). In number of operations electronics almost doubles automotive, in number of jobs automotive however is much more important: over 17,000 jobs compared to just over 8,000 for electronics. A few automotive operations – like DAF in Eindhoven and Nedcar in Born – are responsible for this share (see table 11). Manufacturing industry operations in the sector automotive are largest in average size (370). Operations in the sector electronics are fairly small (95).
Location Country Type of sector22

Table 11: Top 10 largest operations of foreign companies in the manufacturing industry, by number of jobs
Company

(with main activity manufacturing/assembly)
1 2 3 4 5 6 7 8 9 10 DAF Trucks / Paccar Nedcar Thales General Electric Plastics Scania PPG Industries Eaton23 Mommers Polynorm Fresenius Eindhoven Born Hengelo Bergen op Zoom Zwolle Westerbroek Hengelo Echt Bunschoten Emmer-Compascuum United States Japan France United States Sweden United States United States United States Germany Germany Automotive Automotive Machines & appliances Plastics Automotive Plastics Electronics Electronics Metal / Automotive Plastics

Source: Stec Groep, 2004
22 23

See for overview types of sectors Appendix B on page 32. Former Holec.

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Table 12: Number of operations and number of jobs of foreign companies in manufacturing industry by continent/region
Continent/region Europe24 - Germany - United Kingdom - Scandinavia25 - Europe (other)26 North America - United States - Canada Asia27 - Japan - Taiwan - Korea - China - Other28 Other31 Total Number of operations Abs. Rel. 339 115 73 52 99 171 165 6 5029 37 4 3 1 5 10 570 59% 20% 13% 9% 17% 30% 29% 1% 9% Number of jobs Abs. 39,891 12,495 7,924 8,091 11,381 31,836 31,082 754 8,45930 7,937 65 123 40 294 1,783 81,969 Average size Rel. 49% 15% 10% 10% 14% 39% 38% 1% 10% 118 109 109 156 115 186 188 126 169 215 16 41 40 59 178 144

2% 100%

2% 100%

Source: Stec Groep, 2004

24
25

A detailed outlook of Europe is given in figure 11 and 12, page 27. Includes: Sweden (21), Finland (20), Denmark (8) and Norway (3) 26 Includes for instance: France (27), Belgium (26), Switzerland (24), Austria (7), Italy (6). 27 A detailed outlook of Asia is given in figure 9 and 10, page 26. 28 Includes for instance: Singapore (2), Israel (2), Malaysia (1), China (1). 29 Asia contains Japan (6.5% of number of operations), Taiwan (0.7%), Korea (0.5%), China (0.2%) and Other (0.9%). 30 Asia contains Japan (9.7% of number of jobs), Korea (0.2%), Taiwan (0.1%), China (0.05%) and Other (0.4%). 31 South America (3), Africa (2) and Australia (2) as well as companies that have (equal) shareholders from two countries or more, such as joint ventures (3) Operations of foreign companies in the Netherlands in 2004 Stec Groep for NFIA/Ministry of Economic Affairs G-175/3.5.493

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Summary • • • • A major part (nearly 60%) of the foreign operations in manufacturing industry is European; these operations create nearly 50% of the jobs in manufacturing industry. 30% of the operations of foreign companies originate from North America (US operations 29%, Canada only 1%). These operations create 39% of the total number of jobs in manufacturing industry. Asia accounts for 9% of the total number of operations of foreign companies in manufacturing industry and 10% of the total number of jobs created. European operations in manufacturing industry are relatively small-sized (average size around 118 employees) compared to Asian and North American operations.

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Table 13: Number of operations and number of jobs of foreign companies in the manufacturing industry by country, top 10
Country 1. United States 2. Germany 3. United Kingdom 4. Japan 5. France 6. Belgium 7. Switzerland 8. Sweden 9. Finland 10. Denmark Source: Stec Groep, 2004 Number of operations Abs. Rel. 165 115 73 37 27 26 24 21 20 8 29% 20% 13% 6% 5% 5% 4% 4% 4% 1% Number of jobs Abs. 31,082 12,495 7,924 7,937 4,199 2,655 2,425 3,082 4,270 415 Average size Rel. 38% 15% 10% 10% 5% 3% 3% 4% 5% 1% 188 109 109 215 156 102 101 147 214 52

Summary • • • Almost 30% of the operations of foreign companies in the manufacturing industry is US-based, creating 38% of employment in the manufacturing industry. Germany ranks second in number of operations (20% of total) and number of jobs (15% of total). Japan ranks 3rd in number of jobs created, just ahead of the United Kingdom (both 10% market share). The number of Japanese operations in the manufacturing industry however is much lower compared to the United Kingdom (37 versus 73). Looking at the average size of the operations of foreign companies in the manufacturing industry, Japan (215), Finland (214) and the United States (188) stand out.

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Figure 9: Operations of foreign companies in manufacturing industry by country Asia (%) (N=50)
10% 2% 6% Japan (n=37) 8% Taiwan (n=4) Korea (n=3) China (n=1) Other (n=5)

Figure 10: Number of jobs created by Asian operations in manufacturing industry (%) (N=8,459)
1% 1% 4%

Japan (n=7,937) Taiwan (n=65) Korea (n=123) China (n=40) Other (n=294)

74%

94%

Source: Stec Groep, 2004

Source: Stec Groep, 2004

Summary • • • 74% of the Asian operations active in the manufacturing industry is from Japan. The other 26% of Asian operations in the manufacturing industry is from Taiwan (8%), Korea (6%), China (2%) and Other (10%). A very substantial share (93%) of the Asian jobs originates from the Japanese operations.

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Figure 11: Operations of foreign companies in manufacturing industry by European country (%) (N=339)
9% 6% 6% 34% Germany (n=115) United Kingdom (n=73) France (n=27) 7% Belgium (n=26) Switzerland (n=24) Sweden (n=21) 8% Finland (n=20) Other (n=33) 8% 22%
6% 8%

Figure 12: Number of jobs created by European operations in manufacturing industry (%) (N=39,891)
6% 11% 31% Germany (n=12,495) United Kingdom (n=7,924) France (n=4,299) Belgium (n=2,655) Switzerland (n=2,425) Sweden (n=3,082) Finland (n=4,270) 7% 11% 20% Other (n=2,681)

Source: Stec Groep, 2004

Source: Stec Groep, 2004

Summary • The largest number of European operations active in manufacturing industry originates from Germany (115 operations), followed by the UK (73). Together, these countries create 56% of the total European operations in manufacturing industry. The United Kingdom and Germany also create the main share of European jobs (51%, total number of jobs is 20,419). France and Finland create a substantial share in the number of jobs compared to the number of operations active in manufacturing industry from these countries.

• •

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Table 14: Number of operations and jobs of foreign companies in manufacturing industry by province
Province North Brabant Gelderland Limburg Overijssel South Holland Utrecht North Holland Drenthe Groningen Friesland Flevoland Zeeland Total Source: Stec Groep, 2004 Number of operations Abs. Rel. 94 80 74 63 62 58 55 29 24 17 10 4 570 17% 14% 13% 11% 11% 10% 10% 5% 4% 3% 2% 1% 100 Number of jobs Abs. 18,812 7,983 15,008 12,391 6,705 5,339 3,219 5,783 3,485 1,379 926 939 81,969 Average size Rel. 23% 10% 18% 15% 8% 7% 4% 7% 4% 2% 1% 1% 100 200 100 203 197 108 92 59 199 145 81 93 235 144

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Figure 13: Number of operations and jobs of foreign companies in manufacturing industry by province (%) Summary • A lot of operations and jobs of foreign companies active in manufacturing industry are based in the Southern part of the Netherlands; North Brabant and Limburg. Some 41% of the total number of jobs and some 30% of the operations are located in these two regions. The importance of the manufacturing industry in these provinces is also generated by the presence of two sizeable manufacturing/assembly operations in automotive; DAF Trucks in Eindhoven en Nedcar in Born. Gelderland ranks second in number of operations in manufacturing industry (14%) and fourth in total number of jobs (10%). The province of Overijssel ranks third in number of jobs created in manufacturing industry (15%) and fourth in number of operations (11%). In this region the manufacturing/assembly operation of Scania is located. Over 30% of operations of foreign companies in manufacturing industry and 19% of jobs is located in the Randstad. This is less than the total figure of the operations of foreign companies in the Randstad; 31% vs. 57% in number of operations, 19% vs. 57% in number of jobs (see table 9, page 17). In the northern provinces the manufacturing industry is strong presented compared to the total figure of operations of foreign companies in these provinces; 12% vs. 5% in number of operations, 13% vs. 5% in number of jobs (see table 9, page 17). 29

Number of operations Number of jobs


Source: Stec Groep, 2004

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APPENDIX A: SOURCES
Sources used for creating and maintaining the database:
• Development agencies and port authorities Netherlands Foreign Investment Agency (NFIA/CBIN), Holland International Distribution Council (HIDC/NDL), The North Brabant Development Agency (BOM), The Limburg Development Company (LIOF), Investment & Development Company for the Northern Netherlands (NOM), Development Agency East Netherlands (Oost Nederland NV), Amsterdam Airport Area (AAA), Schiphol Area Development Corporation (SADC), Port of Amsterdam, Port of Rotterdam and Zeeland Seaports. • Provinces Flevoland, Gelderland, North Holland, Utrecht, Overijssel, South Holland, The province of Zeeland c/o Stichting Economische Promotie Acquisitie Zeeland (SEPAZ). • Municipalities The city of Alkmaar, Amsterdam, Haarlemmermeer, Heerhugowaard, Heerlen, ’s-Hertogenbosch, Maastricht, Rotterdam City Development Corporation (OBR), West-Holland Foreign Investment Agency (WFIA), among others. • Foreign chambers of commerce American Chamber of Commerce (Amcham), Chambre Francaise de Commerce et d’Industrie aux Pays-Bas (CFCI), Italian Chamber of Commerce, Japanese Chamber of Commerce, Kamer van Koophandel Nederland-Israel, NederlandsDuitse Kamer van Koophandel, South African-Netherlands Chamber of Commerce, The Netherlands British Chamber of Commerce. • Embassies and consulates Canada, Ireland, Norway, Portugal, Sweden, Switzerland, among others. • Other ABC- bedrijvengids (www.abc-d.nl), Axyla Insight (www.axyla.com), Nieuwsblad Transport, Intermediair, Automatiseringsgids, Computable, ETIL B.V, Korea Trade Center, Taiwan Trade Office, PropertyNL, Vastgoedmarkt as well as various sources in (daily) business and economic press and media.

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APPENDIX B: DEFINITIONS: OPERATIONS
Below all different facilities or types of operation used in this research are defined: • • • • • • • Headquarters; decision, strategic or co-ordination center of a company, operating on different geographical scales. For example: European, Benelux or National. Manufacturing/assembly; physical manufacturing or assembly operation. Distribution; warehousing and/or distribution of products, including value added logistics or services. For example: European Distribution Center or European Logistics Center. Wholesale; business to business storing and trading of products. Sales/marketing/consultancy; office facility mainly focused at serving clients and expansion of marketshare in a specific region. Research & development; main activity is to develop, design, and/or test (new) products and processes. Call center; dedicated and separate facility handling customer contacts through multi-media communication (telephone, fax, e-mail, internet) systems. Includes inhouse and outsourced callcenters as well as Pan European callcenters or customer care/contact centers. Shared services center; concentration of backoffice support functions. Data center; establishment that handles large amounts of datacommunication being its own or third parties’ data, also called a data hotel. Other; all activities outside the types of operation stated above, such as training centers, holding companies, liaison offices, repair centers et cetera.

• • •

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APPENDIX B: DEFINITIONS: SECTORS
All sectors used in this research to categorize facilities/operations are listed here and specified when necessary. In general these definitions are based on BIC-codes that are used by the Dutch Chambers of Commerce:
• • • • • • • • • • • • • • • • • • • • Business services; business to business services, including consultancy, accountancy and HR-management among other things Financial services; parties acting as agent between supply and demand of capital: banking and insurance for example IT; e-commerce, software, hardware, internet services and telecom Logistics; transportation, distribution and storage, including aerospace (KLM/Air France) Electronics; consumer electronics, electronic machinery, components and appliances, measuring/control equipment Machines & appliances; manufacturing and repair of machines and appliances to be used for industrial processes Metal; metal and metal products Textile; textile products and clothes, including sportswear Paper & cardboard; paper and cardboard (products) (Luxury) Food; food, drinks and tobacco Plastics; plastics and rubber products Chemicals; (petro)chemical products (gases, base chemicals, synthetics, agricultural among others) Graphics; printing-offices, publishing houses and reproduction of media Office supplies; related to all products used in offices Automotive; cars, trucks and other vehicles, related accessories and parts and transportation equipment Life sciences; medical technology and devices, biotechnology and pharmaceuticals Construction; construction and construction engineering Energy; energy and utilities companies Industry (remaining); all firms operating in industrial sectors not specified above, for example (specialized) wholesale and trading companies as well as companies operating in furniture and recycling. Other; not belonging to one of the sectors named above, for example tour operators, producers of sprinkler systems, music companies and holding companies.

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