Malmö Snapshot 2013 English

ANNUAL REPORT

Malmö Snapshot

Facts and figures on trade and industry in Malmö

Did you know that...

48,000 people visited Malmö during the Eurovision Song Contest.

...there were eight new company start-ups a day in Malmö in 2012?

Page 16 ...Malmö has never had such a large workforce as it does now?

Page 18 ...the media value for the Eurovision Song Contest is estimated at SEK 1.1 billion?

Page 26

A summary from the City Office, City of Malmö 2013

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Preface

Contents

A snapshot of Malmö A city which is attractive to its inhabitants, its businesses and its visitors has a bright future ahead of it. In the long term this means greater opportunities for business, with the potential to create more jobs for more Malmö residents.

The Eurovision Song Contest was a shining example of an event that generated a sense of pride in and commitment to our city, helping make Malmö still more attractive.

Eurovision reached a global TV audience of around 170 million, and 1,700 journalists, along with around 80,000 spectators, watched the event live in Malmö Arena.

An international media analysis estimates the media value in international and national press at around SEK 1 billion.

In Malmö we continue to create the best conditions for ensuring our growth is both sustainable and inclusive. Our Structure Plan sets out the routes we are to follow and will provide clear guidance for the growth we anticipate. Calculations indicate that within twenty years we will be seeing another 100,000 new residents in Malmö, in addition to 50,000 new jobs.

To succeed in this we have to continue working to make the city still more attractive,

while making sure we always remain at the forefront of innovation. Evidence that we are on the right track was recently provided

by Forbes Magazine, where an OECD report indicated that Malmö was ranked fourth in a list of the world’s most inventive cities.

We were pipped at the post by Eindhoven, San Diego and San Francisco.

- Planned projects - Commuting - Infrastructure

Population

To help us further in our strategy of constant improvement we have launched a new scheme called “Business Pilot” (Företagslots)*. The purpose of this is to facilitate trade and industry in the city, as well as help businesses or individuals intent on setting up in Malmö. Call us directly or send us an e-mail with your query. We will provide you with all the help you need. So far we have managed to respond to 75% of queries on the very same day we received them. Every day sees eight new company start-ups in Malmö.

That’s a pretty good number – but we have room for more!

- Population increase

- Housing construction

- Age distribution

- Unemployment

- Universities/colleges

- New companies

- Regional accounts

- Turnover

Workforce

We are totally committed to making Malmö a truly great city in which to live, enjoy life and do business.

Pehr Andersson Director, Trade and Industry Agency, City of Malmö

Growth

Region

PHOTO: LEIF JOHANSSON X-RAY

Malmö is an attractive and innovative city which has grown for the 28th year in a row!

Contents

Corporate structure

- Workforce, daytime population

- Number of places of employment

- Geographical trends

- Legal form of enterprise

- By industry

- Foreign-owned places of employment

- Industry trends

- Malmö’s profile areas - Eurovision Song Contest

A clear picture of Malmö In this report, we have compiled some facts and figures to provide a general picture of trade and industry in Malmö.

These will give those interested in Malmö an idea of how the city is developing. * Feel free to contact the City of Malmö’s “Business Pilot” (Företagslots) on +46 (0)40 34 30 00 or e-mail foretagslots@malmo.se

»» The report is available in Swedish and English. »» Read and download the digital version from our website www.malmobusiness.com. There you can find more information as well as presentations.

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Region

Region

A city in transition

Two new major research facilities under way Both will be constructed in Lund, 20 km north of Malmö. In addition to exciting new research potential, the facilities will generate further job opportunities and more growth in the region.

Interest in Malmö is huge and there is a lot going on in the city. Many players recognize its potential and are eager to invest in our future.

MAX IV is a synchrotron radiation laboratory.

2,000 researchers from around the world are expected to use the facility every year.

Due to open in 2015.

A selection of planned and ongoing projects:

The ESS (European Spallation Source) will be the world’s foremost materials research facility using neutrons. It is a collaboration project involving 17 European countries.

Due to open in 2019.

»» Malmö Live (concert hall, congress centre and hotel) »» Redevelopment and expansion of several shopping centres – Triangeln, Mobilia and Caroli City

A tunnel between Denmark and Germany

»» Legal centre »» University expansion (qtr. Niagara)

The Fehmarn Belt Tunnel will be constructed between Denmark and Germany, and completion is anticipated for 2021.

The tunnel will link Scandinavia with the continent, leading to a considerable reduction in journey times. The Öresund Bridge has played an important role in the integration and growth of the Öresund Region and the tunnel is forecast to be equally important in creating a competitive new major economic region.

»» Planned swimming facilities »» Culture Casbah »» IKEA – new offices for global staff departments and training centre »» Development of Skåne University Hospital (SUS) »» Continued expansion of Västra Hamnen (the Western Harbour) »» Continued expansion of Hyllie »» Expansion of Norra Sorgenfri

Malmö Live – concert hall, congress centre and hotel, due to be opened in 2015.

Graphic: Schmidt Hammer Lassen

European Spallation Source (ESS) Graphic: Henning Larsen Architects + COBE + SLA

A metro link between Malmö and Copenhagen?

Via a tunnel under the Öresund Strait, the trip by metro will take around 15 minutes. A metro link would take some of the pressure off the Öresund Bridge, which is expected to carry increased goods traffic when the fixed link between Denmark and Germany is completed. The metro link is also expected to promote everyday integration across the strait. An investigation, due for completion in Autumn 2013, is looking into the possibility of building a metro link between Malmö and Copenhagen. If the proposal gets the green light, a metro system may well be up and running by 2030.

Culture Casbah is set to be a new landmark in Rosengård. The project won the Best Futura Project award in March at Mipim, one of the world’s biggest real estate trade exhibitions.

Graphic: Lundgaard & Tranberg Architects

Several major investments have been completed in Malmö in recent years, such as: »» 2013 Eurovision Song Contest »» Swedbank Stadium »» Media Evolution City »» Entré - a new shopping centre »» Several new hotels

The City Tunnel, including two new stations and expansion of Malmö Central Artist’s impression: Imagix

Emporia Shopping Centre Photo: Leif Johansson X-RAY

Malmömässan – new exhibition and convention centre in Hyllie Photo: Björn Forsberg

Expansion of Norra Hamnen (port) Photo: CMP

Malmö Arena Photo: Leif Johansson X-RAY

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Region

Region

Öresund Region

Good infrastructure

The Öresund Region is the largest and most densely populated metropolitan region in the Nordic countries.

»» Copenhagen International Airport (Kastrup) is easily accessible by train and car. The train journey takes 21 minutes from Malmö Central Station »» Trains from Malmö, stopping at Copenhagen airport and city centre, depart every 10 minutes during rush hours. At other times, trains depart every 20 minutes

»» The Öresund Region includes Skåne in Sweden and the Danish islands of Zealand, Mön, Lolland-Falster and Bornholm

»» Malmö Airport is located 30 kilometres east of the city. Airport buses are available for the 40-minute journey

»» 3.8 million inhabitants in total (1.3 million live on the Swedish side and 2.5 million on the Danish side)

»» One of Sweden’s largest cargo ports is in Malmö. The harbour is home to a combined cargo and passenger port. A major harbour expansion project has recently been carried out providing new areas, terminals and a logistics centre

»» 25% of the population of Sweden and Denmark live in the Öresund Region »» It is the largest Nordic regional labour market, with 1.8 million people

»» Opened in 2010, the new City Tunnel has provided Malmö with even better infrastructure and two new stations. Commuting times for a number of routes were shortened, resulting in greater mobility in the region »» Malmö has two ring roads (Outer and Inner Ring Road), which make for efficient logistics »» Proximity to a well-developed road and rail network allows easy transport of goods and people, both within Sweden and to Scandinavia and Europe

S W E D E N

»» The region accounts for 25% of the countries’ combined GNP »» Around 250,000 companies (2010) Port of Malmö

»» 167,000 students are enrolled at the region’s colleges and universities (2010) »» In 2022, the population is expected to exceed the four million mark

The Öresund Region is growing into a major economic region »» Once the Fehmarn Belt Tunnel, a fixed link between Denmark and Germany, is completed in 2021, it will pave the way for a competitive major economic region.

There will be a significant reduction in travel and transport times, and it is expected to have a positive impact in terms of integration, growth, the number of potential jobs, tourism, research and culture.

LUND 10 MIN GOTHENBURG 3 H STOCKHOLM 4 H 20 MIN COPENHAGEN 30 MIN HAMBURG 5 H 30 MIN

D E N M A R K

Copenhagen

Malmö

Malmö Central Station

STOCKHOLM 1 H OSLO 1 H 5 MIN BERLIN 1 H 15 MIN AMSTERDAM 1 H 25 MIN BRUSSELS 1 H 50 MIN

Triangeln Station

NN TY

TU

Inner Ring Road

CI

»» Malmö’s new Structure Plan and Copenhagen’s new Municipal Plan describe the mutual role of the cities as motors for regional development. They provide a common outline of development strategies and areas for expansion. These two plans, which are now adopted policy in each city, serve to underline the close cooperation between them, with the implication that their citizens and businesses should see each one in the context of the other.

EL

Close cooperation across the strait

The Öresund Region covers parts of two countries, Sweden and Denmark, with easy access between the two via the Öresund Bridge, inaugurated on 1 July 2000. The 16 km long link is located between Malmö and Copenhagen.

Öresund bridge, Copenhagen International Airport

Hyllie Station

Malmö Airport (Sturup)

Svågertorp Station

Outer Ring Road

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Region

Region

Commuting over the Öresund Bridge

Domestic commuting »» Malmö is located in a mobile region with everything close at hand. Distances are short and it is easy to move around »» 61,870 people commuted to Malmö from other municipalities in Sweden (domestic inbound commuting 2011)

»» 14,600 people commuted daily by train or car across the Öresund Bridge (2012)

18 000 16 000

»» Commuting decreased by 3.7% compared to the previous year and 9% over five years, but increased by 198% over ten years. The highest level was reached in 2009; since then commuting has decreased slightly

14 000 12 000 10 000 8 000

»» 28,359 people commuted to other municipalities in Sweden from Malmö (domestic outbound commuting 2011) »» For several years, commuting has been increasing in both directions and has contributed to making the region mobile

»» 59% commuted by train and 41% by car

6 000

»» Communications in the region are good.

December 2010 saw the inauguration of the City Tunnel in Malmö, further enhancing the options for commuters

»» 93% commuted to work and 7% were students

4 000

»» The majority commuted from Sweden to Denmark – 96% live in Skåne

2 000 0 1995

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Commuters by hydrofoil

Commuters by train

Students by train

Commuters by car

2010

2011

2012

»» Larger local labour markets contribute to increased flexibility, benefiting companies and citizens alike.

Companies have better opportunities to find the right skills and expertise, and the individual citizen has a wider choice when it comes to the job market

»» Many Danes reside in Malmö due to differences in housing prices between the countries, and many Swedes work in Copenhagen, though this trend has tailed off over recent years »» Approximately 10,500 people commuted from Malmö to jobs in Denmark (2010)

7% 41%

Working

Photo: Leif Johansson X-RAY Malmö Central Station

Train

Studying

Inbound commuters 2011

Car 93% Arbetar 94%

Studerar 6%

59% Tåg 55%

Bil 45%

43%

Almost 70,000 people cross the bridge every day.

Outbound commuting (from Malmö)

Inbound commuting (to Malmö) 57%

2011 2010 2009

18,500 vehicles per day crossed the bridge.

Traffic increased year-on-year up to 2009 and is now just below the level then achieved. In 2012, a total of 6,765,816 vehicles (cars, trucks, buses, etc.) crossed the bridge.

Män 57%

2008 2007

Kvinnor

Men43%

Women

2006 2005

Outbound commuters 2011

2004 2003 2002 2001

43%

2000 1999

57%

1998 1997 1996

Män 57%

1995

Öresund Bridge

-40 000

-30 000

-20 000

-10 000

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

Kvinnor

Men43%

Women

10

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Population

Population

A growing city

»» With 307,758 inhabitants, Malmö is Sweden’s third largest city (31 December 2012) »» The population increased by 4,923 people (+1.6%) in 2012.

Both net birth and net migration posted positive values »» Malmö’s population grew for the 28th year in a row »» In 20 years, Malmö’s population has increased by 71,000 (30%).

The largest increases have been in the 0-5 and 25–39 year old age groups

Over twenty years, Malmö’s population has become on average three years younger.

The resident most typical of Malmö today would be a 29 year-old woman or a 30 year-old man.

»» In April 2011, Malmö’s population passed the 300,000 mark »» Malmö is a young city. Almost half of the population is under the age of 35 (49%) »» 73% of households are small one or two-person households (2010) »» 31% of the city’s inhabitants were born abroad – those born in Iraq and Denmark account for the two largest groups

By 2021 Malmö is expected to have more than

»» 177 countries and about 150 languages are represented Photo: Leif Johansson X-RAY

Thousands

350,000 inhabitants

Malmö’s population 1968–2012, and the projected figures up to 2022

380

360

Population by age group and gender (2012)

340

Percentage age distribution

Thousands

320

30

300

Total

13%

9%

17%

Men

13%

10%

17%

Women

12%

17%

6%

9%

11%

13%

4%

1%

25

280

20

307,758 people

260

31 Dec. 2012

18%

13%

6% 3% 1%

9%

11%

15

10

240

9%

16%

18%

12%

10%

11%

7%

1%

5%

5 0

220

10

20

30

40

50

60

70

80

90

100 %

0 0-9

10-19

20-29

68 19 70 19 72 19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18 20 20 20 22

200 19

Malmö’s booming trade and industry and flourishing university offer a good quality of life with a wide range of activities, attracting many new residents to the city, which is growing year by year.

Photo: Leif Johansson X-RAY

Women

Men

30-39

40-49

50-59

60-69

70-79

80-89

90+

Age

0-9

10-19

20-29

30-39

40-49

50-59

60-69

70-79

80-89

90+

12

13

Population

Population

Regional accounts

Malmö has around 26,000 university college students.

»» Gross Regional Product (GRP) in Malmö amounted to SEK 117,445 million in 2010 (+55% in ten years); service production in particular has increased. GRP per capita was SEK 393,000 »» Total disposable income in Malmö was SEK 45,169 million (+55% in ten years); disposable income per capita was SEK 151,000 »» Total wage bill for Malmö was SEK 48,499 million (+56% in ten years); services production in particular has posted a big increase in its wage bill

Gross Regional Product (GRP) per capita, current prices, SEK thousand

Gross Regional Product (GRP) in Malmö by Industry, SEK million

800

70 000

700

60 000

600

50 000

500

40 000

400

30 000

300

Universities and university colleges

»» Located in central Malmö

08 20 09 20 10

07

20

06

20

20

04

05 20

03

20

02 20

00

01

20

20

98

99

19

19

96

97

94

19

19

19

93

19

19

10 20

08

09 20

07

20

20

05

06 20

04

20

03

20

02 20

20

00

01 20

99

20

19

97

19

19

19

95 19

20

Public authorities and household non-profit organisations

Items not broken down by industry

Wages by Industry in Malmö, current prices, SEK million

20 000

160 140

15 000

120

10 000

100

5 000

80 60

Stockholm

Gothenburg

Malmö

Sweden

Skåne

93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10

19

10 20

20 09

20 08

20 07

20 06

20 05

04 20

2

20 03

20 0

20 01

0 20 00

The World Maritime University has been located in Malmö since 1983. This is an entity which, in terms of its organisation, answers to the United Nations (UN).

Market production, services (SNI 50-95)

25 000

9

»» Newly graduated university students prefer to settle in metropolitan areas after they have completed their studies, according to a report from the Swedish National Agency for Higher Education and Statistics Sweden (2010)

Market production, products (SNI 01-45)

180

19 9

»» Engages in joint projects with 252 partner universities throughout the world

Skåne

30 000

98

»» Offers around 100 education programmes and 500 courses

»» 30% of Malmö’s population (in the 25–64 year old age category) have spent at least three years in tertiary education.

The corresponding figure for Sweden as a whole is 25%. This puts Malmö in 19th place out of 290 municipalities according to Statistics Sweden (2012)

Sweden

200

19 97

»» 24,000 students (2012) (12,885 full-time students) on roll; 5,000 students at its inception in 1998.

Malmö

220

19

»» Founded on 1 July 1998

Malmö also offers opportunities to study at institutions such as the Art Academy, the Academy of Music and the Theatre Academy.

96

»» Sweden’s ninth largest seat of learning and the largest university college

Metropolitan areas attract people who are highly trained and educated

Gothenburg

Disposable Income per capita, current prices, SEK thousand

19 95

Malmö University:

19

19

Stockholm

98

0 96

0 94

10 000

93

100

19

Photo: Leif Johansson X-RAY Malmö University

95

20 000

200

Market production, products (SNI 01-49)

Market production, services (SNI 50-95)

Public authorities and household non-profit organisations

The figures for 2009 and 2010 are based on SNI 2007

14

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Hostels

»» 2012 was another “all time high” year for the tourist trade in Malmö »» The tourist trade enjoyed a turnover of SEK 6.9 billion in Malmö in 2012, a figure which exceeds that of 2011. Over half of the proceeds came via restaurants and cafés and shopping »» Consumer sales generated employment equivalent to 5,086 full-time employees, an increase of 12% (+550 individuals) compared to 2011 »» 1.8 million visitors had overnight stays in Malmö, staying on average 2.34 nights per visit: so a total of almost 4.3 million overnight stays. In addition, 5.1 million day trips were made to Malmö »» 1,219,071 overnight stays involved a hotel stay, which is 3,121 more than in 2011, making this a record for hotel overnight stays in terms of volume. On the other hand, the number of overnight stays in youth hostels declined by 5% compared to 2011 »» Approximately 27% of the guests who stay at hotels and hostels are visitors from abroad, and around 73% are from Sweden

Guest night = each overnight guest

Vacancy rate Malmö/Lund

Prime Rent Central Business District Malmö (SEK/sq m/year)

»» 2012 saw a lot of new office space coming on the market, including the arrival of Media Evolution City, the properties in the Fören development, Bassängkajen II, Koggen II and Fullriggaren 4, all of which are located in Västra Hamnen (the Western Harbour).

The increased availability of vacant premises may well act as a brake on rent increases for the foreseeable future »» There has been a slight increase in vacancy rate, which has reached 6.9%, as against 6.6% for the previous year. Rental levels for prime rent in the Central Business District (CBD) dropped slightly to SEK 2,013/m²/ year compared to SEK 2,050/m²/year for the previous year »» A major investment project came on the market in October with the opening of Steen & Ström’s Emporia shopping centre in Hyllie, providing 93,000 square metres of rental space for retail outlets, restaurants, cafés and offices. A lot of businesses new to Malmö have premises here »» Skanska has sold the congress and hotel components of Malmö Live, due for completion in 2015, to AFA, and NCC has sold Nya Triangeln, comprising offices, retail outlets and housing accommodation, to Vasakronan. Wihlborgs has acquired Baltzar City, and Balder has purchased a hotel property (the Renaissance)

Started

Newly built

11

12

20

20

09

10

20

20

07

08

20

05

06

0

20

0

20

0

30

03

200

04

400

200

20

400

60

20

600

01

0

800

600

02

0

800

20

2

90

1000

20

200

1200

99

4

1 000

19

6

400

97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12

600

1 200

1400

00

8

120

1600

19

800

1 400

1800

20

10

1 600

97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12

1 000

1 800

97

2 000

98

12

150

2000

19

1 200

Number of employees – daytime population Thousands

Number

19

14

Hotels

PHOTO: SARA BERGMAN, KNITTED MAP OF MALMÖ

SEK/sq m/year 2 200

%

Thousands 1 400

19

* The Growth Municipality of the Year prize is awarded by Arena för Tillväxt and SWECO Eurofutures

Housing construction

Commercial real estate market

19

Guest nights

97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12

10 interesting key figures Malmö is doing well and 10 key figures help to monitor its development. The positive trend was recognized in 2009 when the city was awarded the prize for Growth Municipality of the Year*.

Growth

Quarterly results for the ten key figures are published each spring and autumn on our website

20

Growth

Number of employees

»» During 2012, 1,363 new homes were completed; 85% of them in multi-dwelling buildings and 15% as single-family homes

»» There were 153,236 employees in Malmö in 2012 – an increase of 3,411 or 2.3% compared to the previous year

»» Averaging over the last ten years, each year saw the start of construction of 1,000 new homes in Malmö. An unusually large proportion of the new-build projects for 2012 involved rental accommodation, probably due to the uncertain economic climate. Within existing housing stock there has also been a very evident decline in the number of conversions from rental to co-operative accommodation over recent years

»» The upward trend in the number of employees began to pick up again after the summer of 2011, having stagnated for a few years due to the economic crisis in Europe and the rest of the world

»» The level of planning approvals continues to be good, making it possible to start construction on 2,000 new homes in 2013. However, due to the economic climate, it is estimated that construction will only start on around half of these. The areas in question are mainly Västra Hamnen, Hyllie and Norra Sorgenfri »» Despite the poor economic climate and the fact that housing construction is generally at a low ebb nationally, more homes have been built in Malmö during 2012 than was anticipated. The number of new-builds started is also slightly more than for 2011 »» Balanced housing construction is one of the housing policy objectives of the City of Malmö, representing an important component in the development of an integrated city Multi-dwelling building = building with at least three separate apartments. The maximum number is unlimited.

»» The last year has seen an increase led by consultancy businesses, followed by graphic design, transport/warehousing and construction, as well as among interest and lobby groups. There are fewer employees in the electricity, gas and heating sector, and in the wholesale trade in general »» Swedish private sector companies with the exception of corporations are showing the greatest increase, followed by companies in foreign ownership. There is a decrease in the number of employees in stateowned businesses. In terms of legal form of enterprise, the greatest increase is in limited companies »» The number of employees has increased by 23% in 10 years. A long-term positive trend is evident within business services, IT and computer consultancies, the hotel and restaurant trade, education and commerce Number of employees = daytime population, i.e. the number of people employed in Malmö (excluding owners of sole proprietorships) who earned at least one basic amount per year, or worked as temporary employees for more than three months.

16

17

Growth

Growth

New vacancies

New companies

Bankruptcies

%

Thousands

Number

Number

SEK million

18

40

3 000

500

1 200

16

35

2 500 2 000

25

300

Population Malmö

Population Skåne

Population Sweden

Workforce Malmö

Workforce Skåne

Workforce Sweden

»» The job market has only experienced weak growth, and unemployment in Malmö increased compared to 2011; it is expected to remain at current levels or reach a slightly higher level in 2013. The Danish labour market, which is an important additional source of potential employment for job seekers from Skåne, is also suffering, and there has been less commuting to work across the strait »» In 2012, the number of unemployed registered with the Public Employment Service in Malmö (16–64 age group) was 19,200, i.e. 14.0% of the workforce. Of those without employment, 43.1% were women and 56.9% were men »» Youth unemployment stood at 23.0%; on average 3,600 young people (18–24 age group) were registered as unemployed with the Public Employment Service in Malmö »» Compared to 2011, unemployment increased by 0.4% in Malmö (16–64 age group), by 0.3% in Skåne and by 0.1% in the rest of Sweden. For young people (18–24 age group), unemployment increased very slightly in Malmö, but fell slightly in Skåne and the rest of the country »» Since 2008, unemployment has been reported as a proportion of the workforce; this gives a higher figure than if it were reported as a proportion of the population

Average per year. People aged 16–64 registered with the Public Employment Service as a percentage of the registered workforce.

(1997–2007 = as a percentage of the population)

200

New vacancies

»» 26,634 new vacancies were reported to the Public Employment Service in Malmö in 2012; a decrease of 8.5% compared to the previous year »» On average, 73 new vacancies were reported every day throughout the year »» After the financial crisis, the number of vacancies reported rose again during 2010 and 2011, but during the second half of 2012, demand fell and the positive trend was reversed. Nevertheless, the number of new vacancies is still at a high level in historical terms »» 2012 saw a marked increase in demand in the field of culture/entertainment/ leisure/other services; commerce has also experienced a degree of growth »» Demand in the public sector fell significantly during 2012 compared to the previous year, as it also did in finance/ insurance and IT, though to a lesser degree »» During the last 10 years, the number of vacancies reported has more than doubled. The sectors posting the biggest increases in percentage terms are telecommunications, culture/ entertainment/leisure/other services and construction, whereas the public sector and the hotel/restaurant trade have experienced the greatest reductions

100

400

Number of new companies

Number of bankruptcies

»» About 2,200 new businesses are started per year (average over last 10 years). In 2012, there were eight new start-ups a day

»» For every company that goes bankrupt, there are seven new company start-ups (average over last 10 years)

»» There were 2,811 new business start-ups in Malmö in 2012; a very high number despite being lower than the previous year – 2011 had seen the highest number of new business start-ups ever! Stockholm, Gothenburg and the country in general also posted a similar decrease

»» Approximately 320 bankruptcies per year. Fewer than one bankruptcy per day (average over last 10 years)

»» 62% of the new companies were sole proprietorships and 32% were limited companies; which meant an increase in limited companies »» The new companies employed 3,233 people (approximately 1.2 per company) »» The industries that grew most over the year were advertising/marketing and finance/ insurance/real estate services »» There were 13.9 start-ups for every 1000 inhabitants in Malmö. Compared with 18.4 in Stockholm, 12.3 in Gothenburg and 11.5 in Sweden as a whole; the business climate in Malmö is excellent, and for several years the city has enjoyed high rankings for business creation in Sweden »» 68% of the companies established in Sweden in 2008 were still in business three years later (survival rate) From 2010 onwards the statistics have been based on registration data instead of on direct collection of information. New activation criteria have been applied, along with a new basis for calculating the number of employees.

New company = new start-up from scratch, or a business that has resumed after being dormant for at least two years

»» The number of bankruptcies increased in 2009 due to the global financial crisis and subsequent recession of 2008. The number decreased to some extent during the years after the crisis, and there were slightly fewer bankruptcies again during the course of 2012 »» 2010 and 2011 also saw a recovery in Sweden generally, including in Stockholm and Gothenburg. Nevertheless, during 2012 the number of bankruptcies in Sweden as a whole, as well as in Stockholm and Gothenburg, rose again »» 343 bankruptcies in Malmö in 2012, occurring within several sectors; an increase compared to the previous year can be noted in culture/entertainment/leisure and a decrease in credit institutions/insurance companies, as well as industry in general.

The increase is greatest in companies with 20–49 employees. »» In recent years, limited companies have accounted for the increase, but the level has fallen over the last year. The sectors that show an increased number of bankruptcies during the last five years are real estate companies, construction and transport and warehousing

50

0

0

Investments Investments

20 13

200

19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12

12

11

20

20

09

10

20

08

20

07

20

20

05

06

20

04

20

03

Previous calculation method

20

02

20

20

20

20

19

00

0

01

0

98

100

99

500

97

97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12

1 000

19

11

12

20

20

09

10

20

20

07

08

20

20

05

06 20

04

02

20

20

20

20

20

19

20

19

19

03

0 01

0 99

5

00

2

97

10

98

4

600

97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12

15

6

150

1 500

20

8

19

10

200

800

19

12

SEK billion 250

1 000

400

30

19

14

Turnover

Industrial investments

Forecast

19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12

Unemployment

Turnover, excl. VAT

»» There was less private-sector investment in Malmö during 2012. Despite the reduction, investments remain at a high level. The level of investment in 2011 was the highest within the period of measurement

»» Turnover for 2012 was SEK 256 billion, which is the highest amount posted over the period of measurement, representing a marginal increase compared to the previous year

»» Industries in Malmö invested SEK 826 million in 2012, a 13% reduction compared to the previous year; the biggest decline in percentage terms related to machinery and equipment

»» After several years of strong growth, turnover dropped over the 2009–2010 period due to the economic downturn.

Now turnover in Malmö has recovered and is at a higher level than during the record years of 2006–2008

»» In Sweden as a whole, industrial investment increased by 10% compared to the previous year. The biggest increase in investment volume for 2012 came from the mining, transport equipment and electronic goods industries. Among those sectors which posted reduced investment volumes were steel and metals production and the timber products industry »» The outlook for Malmö in 2013 shows a projected level of investment of SEK 592 million, i.e. a significant rise in investment is expected; a few months into 2013 the forecast was revised upwards slightly »» For Sweden as a whole, the original projection for 2013 was unchanged compared to 2012, but a few months into 2013 the forecast was revised down slightly

Industry = SNI code B+C i.e. “extraction of minerals” and “manufacturing”.

»» During the last 10 years, turnover in Malmö has increased by 40% »» Two sectors of the economy that have shown a significant increase over the last year are waste management and civil authorities/defence »» Other sectors that have posted an increase in turnover are construction, culture/entertainment/sports and the food industry »» Two sectors where there has been a significant drop in turnover over the year just gone are stationery and computers/ electronic products

18

19

Workforce

Workforce

Growth and confidence in the future

Geographical trends, workforce

Malmö is a city with a thriving economy, strong growth, and great confidence in the future.

Trend vs. previous year

2001

2010

2011

Stockholm

531,912

589,796

606,173

74,261 14%

16,377 2.8%

Gothenburg

269,254

300,886

308,919

39,665 15%

8,033 2.7%

Malmö

134,577

154,446

158,261

23,684 18%

3,815 2.5%

Lund

56,353

66,154

66,753

10,400 18%

599 0.9%

Helsingborg

56,204

63,343

64,909

8,705 15%

1,566 2.5%

488,396

537,594

550,077

61,681 13%

12,483 2.3%

4,091,079

4,392,720

4,505,600

414,521 10%

112,880 2.6%

Skåne

In the 1990s, however, the city went through a tough period; several industries were shut down and the active workforce shrank. During the same period the decision was taken to build the Öresund Bridge (opened 2000) and to establish Malmö University (founded 1998), two of the many initiatives that have contributed to Malmö’s transformation from an industrial town into a knowledge city.

10-year trend

Sweden

»» There is a positive trend for workforce numbers in Malmö »» The proportion of the workforce with workplace in Malmö has increased by 18% in 10 years

Distribution by gender »» 48% of the workforce are women and 52% are men »» Hotels and restaurants, and financial and insurance services are the sectors with the most even gender distribution; in both, 48% are women and 52% are men »» Healthcare and social services have the largest proportion of women, and the construction industry has the largest proportion of men

»» In Sweden as a whole, the workforce increased by 10% during the 10-year period; the corresponding figure for Stockholm is 14%, Gothenburg 15% and Skåne 13%

Turning Torso is Sweden’s highest building (190 metres) Photo: Leif Johansson X-RAY

Workforce by industry

Percent, % 18

Trend for workforce, daytime population

14

Thousands

160

154 149

150

146

151

158

»» After a slight downturn in 2009, the workforce has increased again over the last two years and is now at an all-time high

12

8

»» There has been an increase of 2.5% compared to the previous year, with an increase of 18% over ten years

128

118

111

6

110

0

Bu

Workforce (16+ years) with workplace in Malmö. The figures include both owners of sole proprietorships and employees in all forms of enterprise. RAMS SCB. 2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1980

1970

1960

90

»» Over half (53%) work in the four major groups listed above

2 s

ice

rv

e ss

es

sin

100

»» In 2010 business services overtook commerce to become the biggest employment sector in Malmö

4

»» Over the last 10 years, the increase has mainly been in business services and education; there has been a decrease in manufacturing

120

»» Malmö has the highest percentage working in business services (16%), followed by commerce (15%), healthcare and social services (13%), and education (9%)

10

»» Malmö was the place of employment for 158,261 of the workforce

149

143

140

137

140 130

»» Today a large number of people work in various knowledge-intensive service industries in Malmö; only 7% work in manufacturing, which is a lower figure than for Sweden as a whole, where 13% work in manufacturing

16

170

From industrial town to knowledge city

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Malmö

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»» Sweden as a whole differs from Malmö in terms of which areas have the largest workforce; in Sweden, the largest group is healthcare and social services (16%), followed by manufacturing (13%) Industry sectors sorted in descending order of size.

Workforce, daytime population 2011 (16+ years).

RAMS SCB. SNI 2007.

20

21

Workforce

Workforce

Industry trend (number of employees) Percentage change, 2009–2012

Long-term trends

»» The sectors with the largest percentage increase in the number of employees during the period are law/economics/ science/technology and the hotels and restaurant trade

Due to changes in the way industry sectors are categorised, no detailed long-term analysis is feasible; we can only provide a brief summary of the general trend.

»» Transport and warehousing, healthcare and social services, civil authorities/defence and education also indicate increases of more than 10%

»» A long-term positive trend is evident within business services, IT and computer consultancies, the hotel and restaurant trade, education and commerce

»» Industry sectors where there has been a fall in employment are construction, agriculture/forestry/fisheries, manufacturing and information/communication

»» A downward trend is evident within manufacturing and agriculture/forestry/fisheries

Data from 2009 onwards is based on the new categorisation of industry sectors.

This is why there is a break in the chronological sequences in the graphs.

Furthermore, in those cases where the industry sector name before and after 2009 is the same, such as in the case of “manufacturing”, there may have been a

Agriculture, forestry and fisheries Energy, water, waste, etc.

Manufacturing

Commerce

Transport and warehousing

Construction

Hotels and restaurants

Culture and entertainment

18 000 16 000 14 000

0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20

1994–2008 SNI 2002, 2009–2012 SNI 2007

24 000

18 000

22 000

09 010 011 012 2 2 2

1994–2008 SNI 2002, 2009–2012 SNI 2007

16 000

12 000

14 000

10 000

12 000

8 000

10 000 8 000

6 000

6 000

4 000

4 000

2 000

2 000 20

18 000

14 000

4 000

0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20

20 000

16 000

6 000

09 010 011 012 2 2 2

20

0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20

Civil authorities and defence

Healthcare, social services

20 000

8 000

2 000

Education + R&D

Law, economics, science and technology

20 000

10 000

4 000

Property companies and administrators

22 000

12 000

6 000

Rentals, property services, travel services and other support services

26 000

14 000

8 000

Other business services

22 000

16 000

10 000

Information and communication

IT and computer

24 000

18 000

12 000

Finance and insurance

change in the categorisation principle on which this is based. This is why data based on the new and old categorisation of industry sectors cannot be compared.

To give an idea of the long-term trend, we have chosen to retain the old definitions and present these here.

2 000 20

09

20

10

20

11

12

20

0

94 995 996 997 998 999 000 001 002 003 004 005 006 007 008 1 1 1 1 2 2 2 2 2 2 2 1 2 2

19

09 010 011 012 2 2 2

20

1994–2008 SNI 2002, 2009–2012 SNI 2007

1994–2008 SNI 2002, 2009–2012 SNI 2007

“Other business services” includes, for example, legal, economic, architectural and technical consultancy businesses, advertising and market research, staffing and recruitment, call centres, local healthcare and other consultancy services to businesses.

The number of employees does not include owners of sole proprietorships, only employees

22

23

Corporate structure

Corporate structure

It’s all systems go for enterprise in Malmö

Places of employment Legal entity

1997

2012

Limited company Sole proprietorship General and limited partnership

8,467 8,178 1,958

13,275 14,190 2,097

Other, public sector

Employees 4,808 6,012 139

Change

1997

2012

Change

57% 74% 7%

72,827 703 2,243

100,319 2,032 1,944

27,492 38% 1,329 189% -299 -13%

816

866

50

6%

30,051

40,218

10,167

34%

Other

1,642

2,593

951

58%

8,636

8,723

87

1%

Total

21,061

33,021

11,960

57%

The number of employees does not include owners 153,236 38,776 34% of sole114,460 proprietorships, only employees.

The number of employees does not include owners of sole proprietorships, only employees.

Malmö is home to many new start-ups, and established businesses are opting to relocate their operations to the city. The number of places of employment has sharply increased and today’s corporate structure largely consists of small and medium-sized enterprises.

Photo: Leif Johansson X-RAY

Trend, number of places of employment

»» By the end of 2012 Malmö had 153,236 employees at 33,021 places of employment 160 000

35 000

140 000

30 000

120 000

25 000

100 000 20 000 80 000 15 000 60 000 10 000

40 000

5 000

20 000

0

0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Places of employment

»» The number of employees and the number of places of employment have both increased significantly »» The number of employees in Malmö has increased by 34% in 15 years

Legal form of enterprise 3%

»» 43% of places of employment were sole proprietorships and 40% were in the limited company category, the two most common forms of business enterprise in Malmö

8%

6% 43%

»» The number of places of employment has increased by an impressive 57% over 15 years Definition of the number of employees = daytime population, i.e. the number of people employed in Malmö (excluding owners of sole proprietorships) who earned at least one basic amount per year, or who worked as temporary employees for more than three months

»» The establishment of many new companies reflects the conducive business climate in Malmö and the change that the city has undergone from a structure with a number of large companies to one with many smaller firms »» Limited companies account for the largest proportion of employees; the number of employees in limited companies has increased by 38% in 15 years

40%

Sole proprietorship

Employees

Limited company Data for November of each year The increase in 2011 is due to changes in status rules adopted in 2010 and 2011 designed to adjust for over and under-coverage in the company register.

»» The number of places of employment in the sole proprietorship category has increased considerably in 15 years, an increase of 74%, and the number in the limited company category has increased by 57%

General and limited partnership Other public sector Other

24

25

Corporate structure

Corporate structure

Places of employment Governance

2002

2012

State-owned

283

179

Municipal

673

739

County council

Employees Change

2002

2012

Change

-104

-37%

15,139

13,858

-1,281

-8%

66

10%

19,860

22,507

2,647

13%

77

84

7

9%

8,882

10,228

1,346

15%

18,605

25,949

7,344

39%

23,752

29,793

6,041

25%

Private Swedish, with group

2,888

4,131

1,243

43%

36,986

40,914

3,928

11%

Foreign

1,085

1,939

854

79%

20,127

35,936

15,809

79%

23,611

33,021

9,410

40%

124,746

153,236

28,490

23%

Private Swedish, without group

Total

Processed data on foreign-owned enterprises in 2011 (source: Swedish Agency for Growth Policy) are on the next page

»» 70% were employed in the private sector and 30% in the public sector

»» The number of employees increased most in foreign-owned places of employment, up 79% since 2002; foreign-owned »» The number of employees has companies also include some companies increased by 23% since 2002, mainly in popularly considered “Swedish”, but the private sector registered abroad

Foreign-owned places of employment Number of foreign-owned places of employment 1 800

36 000

1 600

32 000

1 400

28 000

1 200

24 000

1 000

20 000

800

16 000 The Öresund Bridge between Sweden and Denmark was inaugurated in 2000

600 400

Number of places of employment by number of employees Sector

0 empl.

1–2

Agriculture, forestry and fisheries

737

29

11

1

Manufacturing

601

187

205

133

41

2

Energy, water, waste, etc.

3–9 10–49 50–249

250–499

500+

Total 778

1

1,170

52

11

14

13

10

1

101

Construction

1,023

388

222

154

40

1

1,828

Commerce

2,491

985

1,077

484

65

3

5,106

Transport and warehousing

391

302

151

99

21

8

Hotels and restaurants

387

312

292

137

9

1,631

371

242

130

46

2

2,422

435

90

104

40

10

1

680

2,196

392

140

49

8

4,457

1,136

536

238

43

2

809

287

211

129

61

5

3

1,505

4

12

32

34

36

5

2

125

Information and communication Financial and insurance services Real estate activities Law, economics, science and technology Rental, real estate, travel and support services Public administration, defence, etc.

2,785

586

95

169

239

67

3

Healthcare, social services

753

276

270

271

53

3

Culture, entertainment and recreation

2,219

201

110

49

9

1

Other services

1,665

355

180

59

8

2,259

527

333

15

6

Total

20,770

5,444

3,972

974 1,137

Education

Other

2

6,412

1,159 4

1,630 2,589 2,267 354

2012. SNI 2007. The number of employees does not include owners of sole proprietorships.

37

12

33,021

»» Malmö’s economy is largely composed of small and mediumsized enterprises, a structure which is also typical of Sweden as a whole »» A large proportion of the places of employment in Malmö have no employees

»» 97% of the Swedish economy is based on what are known as microenterprises, having fewer than 10 employees and accounting for nearly a quarter of added value in the economy in 2011 »» Big companies with 250 or more employees accounted for just 0.1% of the number of companies, but delivered 40% of the added value in the Swedish economy »» Service companies employed 65% of the employees and accounted for 59% of added value in Sweden

8 000

200 0

4 000 1996

1997

1998

1999

2000

2001

2002

Foreign-owned places of employment

2003

2004

2005

2006

2007

2008

2009

2010

2011 2010

»» 5% of Malmö’s places of employment were foreign-owned (excluding the public sector) »» 31% of Malmö’s employees work in foreign-owned companies (excluding the public sector) »» The number of foreign-owned places of employment has increased by 43% in 10 years »» The number of employees in foreign-owned places of employment has increased by 53% in 10 years

0

»» 1,087 places of employment had employees

Employees in foreign-owned companies

Malmö’s largest foreign-owned companies include Manpower, Pågen, ISS Facility Services, Arriva, G4S, Logica, ABB, Trygg-Hansa, E.ON and IKEA.

»» Malmö has a mixed economy that includes many different sectors, giving the city a solid and diversified base »» The service sector has increased significantly over the last 10–15 years and is now an important contributor to the economy

12 000

»» 32,007 people worked in 1,498 foreignowned places of employment in Malmö (2011)

»» 527 places of employment had 10 or more employees »» 71 places of employment had 100 or more employees

Number of foreign-owned places of employment by country 350 300

281

250

194

200

161 134

150 100

140 119

105

96

127

85 56

50 0 Denmark

United Kingdom The Netherlands Luxembourg Norway Germany Finland USA

France Rest of the world Rest of Europe

Foreign-owned places of employment by country (2011)

»» The largest investor countries in terms of the number of foreign-owned places of employment were: Denmark (19%), Norway (13%), UK (11%) and Germany (9%). »» The largest number of places of employment were in commerce, real estate, business services and communications

26

27

Malmö’s profile areas 2013 Eurovision Song Contest

In promoting local trade and industry, Malmö focuses on a number of profile areas where the city’s strengths are considered especially relevant in terms of delivering more jobs and growth. You can find out more at www.malmobusiness.com under “Profile areas”.

The Eurovision Song Contest was held in Malmö from 12 to 18 May. This high-profile event has had a positive impact on the city and its economy.

»» It was watched by 173 million TV viewers across the world »» We hosted 48,100 visitors just for the Eurovision Song Contest

New Media

Commerce

Cleantech

m

s ’s

ro

as:

al M

»» 1,700 journalists were present

ö

»» 39 countries took part in this, the 58th Eurovision Song Contest

p en v e

fil

re ea

Head offices

Hospitality industry

»» There were visitors from around 70 countries »» 560 volunteers were involved »» The estimated media value was SEK 1.1 billion »» The event generated turnover of SEK 185 million in Malmö and Skåne »» In terms of resulting employment it created the equivalent of 130 full-time jobs

Malmö’s trade and industry policy vision

Logistics

We intend to make Malmö the most inventive and inquisitive city in the Öresund Region, so that it is a uniquely inspiring location in which to set up, run and develop a business.

Life Science

The straight facts!

The purpose of Malmö Snapshot is to provide all stakeholders in trade and industry in Malmö with straight facts and transparent statistics – companies in Malmö, companies planning to move to Malmö, and others who wish to follow business community developments. » The report is available in Swedish and English

Sources: Business Register (Statistics Sweden) European Spallation Source

» Read and download the digital version from our website

Femern A/S

» More information and statistics are available on our website www.malmobusiness.com

Jones Lang LaSalle Malmö University Statistics Sweden Swedish Agency for Economic and Regional Growth

Malmö Snapshot was one of five finalists for the Swedish Publishing Award in the Reports category

Swedish Agency for Growth Policy Swedish Public Employment Service Örestat Öresund Bridge Öresund Committee

Print run: 1,500 Design & production: W Communication Agency (www.justw.com) Printing: Holmbergs Publisher: Pehr Andersson, Director, Trade and Industry Agency, City of Malmö Editor and analyst: Sara Bergman, Trade and Industry Agency, City of Malmö

All graphs in this brochure refer to Malmö. The analyses have been produced in collaboration with the following departments of the City of Malmö: Department of Urban Planning, Department for Integration and Labour Market, and Malmö Tourism.

Trade and Industry Agency Visiting address Lugna gatan 84 Mailing address City of Malmö, SE-205 80 Malmö, Sweden Telephone +46 (0)40 34 17 00 • Fax +46 (0)40 611 27 06 malmobusiness@malmo.se www.malmobusiness.com

COVER PICTURE: 2013 EUROVISION SONG CONTEST IN MALMÖ ARENA PHOTO: LEIF JOHANSSON XRAY