Malmö Snapshot 2012 Annual report

ANNUAL REPORT

Malmö Snapshot

Facts and figures on trade and industry in Malmö

Did you know that... ...in twenty years, Malmö's inhabitants have become three years younger?

Page 11 ...8 new companies were started every day in Malmö in 2011?

Page 16 ...the number of people with their workplace in Malmö is at an all time high?

Page 18

A summary from the Malmö City Office, 2012

2

3

Population and labour market preface

Population and labourCONTENTS market

A snapshot of Malmö In 2011, Malmö passed the 300,000 inhabitants mark.

Wonderful news. Malmö grew for the 27th year in a row.

Malmö´s 2012 structure plan will be one of the guiding lights we follow, since we are counting on the population increasing in twenty years' time by a further 100,000 inhabitants and 50,000 new workplaces.

This is exciting and challenging for our city.

Malmö is expanding today at a rate of eight new companies every day, all year round, and the city has a workforce of 154,000 people. Naturally, this sets requirements for our growth to be sustainable and inclusive.

The global credit institution Standard & Poor's gave Malmö its highest possible credit rating – AAA. It also emphasised that

"Malmö shows a rapid development of the local economy under good management".

The future looks bright!

In June 2012, the ground breaking ceremony took place for our new convention center and concert hall. This will give Malmö yet another landmark, in the best location, at walking distance from the Central Station and City Tunnel. This facility will undoubtedly contribute to making Malmö an even more attractive city.

As if to prove this, at the time of writing we have just received a press release from SVT, which has decided that the 2013 Eurovision Song Contest will be held in Malmö!

On 14-18 May 2013, performers from around 40 countries will compete in the Malmö Arena. With 2,000-3,000 journalists on site for two weeks, and hundreds of millions of TV viewers, this is a unique opportunity to show off our fine city.

Contents Contents However, before that, we have the opening of one of Scandinavia's most international shopping centres – Emporia, with approximately 100,000 sq m of shopping and 3,000 employees located in Hyllie, the Öresund region's most environmentallyfriendly urban district. It is planned that the Hyllie district, when it is fully constructed, will provide 9,000 jobs and nearly as many homes.

Corporate structure - Number of workplaces - Legal forms of enterprises

This is just one of many aspects creating excellent conditions for Malmö to be a truly great city in which to live and do business.

- Foreign workplaces - Business promotion initiatives - Malmö's profile areas

Region - Planned projects Pehr Andersson Director, Trade and Industry Agency, City of Malmö

- Commuting - Infrastructure

Workforce - Workforce, daytime population

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

- Geographical development - By industry

Population - Population increase - Age distribution - Universities - Basic facts

- Industry development

Growth - Housing construction - Unemployment - New enterprises

Photography: Håkan Sandbring

- Turnover

A clear picture of Malmö In this report, we have summarised facts and figures that present Malmö's trade and industry. These will give those interested in Malmö a picture of how the city is developing.

»» The report is available in Swedish and English. »» Read and download a digital version from our website www.malmobusiness.com/en, where you will also find further information and presentations.

4

5

Population the region and labour market

Population and labour the CONTENTS market region

Several major investments have been completed in Malmö in recent years, such as:

A city in transition A selection of planned and ongoing projects: »» Emporia shopping centre »» Convention centre, concert hall and hotel »» University expansion (qtr. Niagara) »» Redevelopment and extension of several shopping centres - Triangeln, Mobilia and Caroli City

Two new important research facilities under way

Illustration: Wingårdh Arkitektkontor

Interest in Malmö is high and there is a lot of activity in the city.

Many players recognize Malmö's potential and are eager to invest in Malmö's future.

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

MAX IV is a synchrotron radiation laboratory. 2,000 researchers from around the world are expected to use the facility each year. Opens in 2015.

»» Legal centre

The Eurovision Song Contest will be held in Malmö in May 2013

»» IKEA - new offices for global staff functions and training centre »» Continued expansion of Västra Hamnen »» Continued expansion of Hyllie

Image of Diligentia's area Masthusen, in the heart of Västra Hamnen, where 18 new quarters are being built

Photography: Leif Johansson X-RAY Malmö Arena

The ESS (European Spallation Source) will be the world's foremost material research facility using neutrons. A collaboration between 17 European countries.

Opens in 2019.

»» Development of Skåne University Hospital (SUS)

»» Expansion of Norra Sorgenfri

Sketch: Imagix The City Tunnel, including two new stations and expansion of Malmö Central

Emporia shopping centre

European Spallation Source

A tunnel between Denmark and Germany The Fehmarn belt tunnel will be constructed between Denmark and Germany and it is estimated to be complete in 2021. The tunnel will link Scandinavia with the continent and will reduce travel times considerably.

The Öresund bridge has played an important role in the integration and growth of the Öresund region and it is forecast that the tunnel will have a similar significance for a competitive, new, major, economic region.

Photography: CMP Norra Hamnen

Visions for the future. »» Metro between Malmö in Sweden and Copenhagen in Denmark. Via a tunnel under the Öresund strait, the metro trip will take approximately 15 minutes.

A metro would relieve the Öresund bridge, which is expected to receive increased goods traffic when the fixed link between Denmark and Germany is completed.

An investigation is under way, which will be completed in Autumn 2013.

Photography: Leif Johansson X-RAY Swedbank Stadium

If the proposal is considered to be positive, a metro system could be finished in the late 2020s. »» Ring line in Malmö (Continental line + City Tunnel + 2 new stations) »» Trams in Malmö Sketch: Midroc New exhibition centre in Hyllie

6

7

Population the region and labour market

Population and labour the CONTENTS market region

The Öresund region

Good infrastructure

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

»» Copenhagen International Airport (Kastrup) is easily accessible by car or rail. The rail trip takes 21 minutes from Malmö Central Station

»» The Öresund region includes Skåne in Sweden and Zealand, Mön, Lolland-Falster and Bornholm in Denmark

»» Trains from Malmö bound for Copenhagen airport and the city centre depart every 10 minutes during rush hours. At other times, trains depart every 20 minutes

»» 3.7 million inhabitants (1.2 million on the Swedish side and 2.5 million on the Danish side)

»» Malmö Airport is 30 kilometres east of the city. An airport bus is available, and takes 40 minutes

»» 25% of Sweden and Denmark's population live in the Öresund region »» The largest Nordic regional labour market, with 1.85 million people

S w e d e n

»» The region represents 26% of the countries' total GNP

»» Malmö has one of Sweden's largest ports for goods. The port is a combined goods and passenger harbour. A comprehensive expansion project has recently been carried out with new areas, terminals and a logistics centre

»» The new City Tunnel, since its opening in 2010, has given Malmö an even better infrastructure and two new stations.

Commuting times for a number of routes were shortened and ease of movement in the region was increased still further »» The city has two ring roads (Outer and Inner Ring Road), which allow efficient logistics »» The proximity to a well-developed road and railway network makes it easy to transport goods and people, both within Sweden and to Scandinavia and Europe

»» Around 240,000 companies (2009) »» More than 160,000 students at the region's colleges and universities (2009)

Port of Malmö

»» In 2023, the population is expected to exceed 4 million inhabitants

The Öresund region is growing into a major economic region When the Fehmarn belt tunnel, which is a fixed link between Denmark and Germany, is completed in 2021, it will open the way for a competitive extended region. Travel and transport times will reduce significantly and positive effects are expected in terms of integration, growth, the number of potential jobs, tourism, research and culture.

D e n ma r k

Copenhagen

Malmö Central Station

Malmö

Triangeln Station

NN TY

TU

Inner Ring Road

CI

In Malmö's new structure plan and Copenhagen's new "municipality plan", the cities describe their joint role as motors for regional development.

Development strategies and areas are described jointly. These two politically adopted plans signal the close collaboration between the two cities, and that they should be seen in a single context by citizens and industry alike.

EL

Close collaboration across the strait

The Öresund region covers parts of two countries, Sweden and Denmark, with easy access between the countries via the Öresund bridge, which was opened on 1 July 2000. This 16-kilometre long link is located between Malmö and Copenhagen.

Öresund bridge, Copenhagen International Airport

Hyllie Station

Malmö Airport (Sturup)

Svågertorp Station

Outer Ring Road

8

9

Population the region and labour market

Population and labour the CONTENTS market region

Commuting over the Öresund bridge

Domestic commuting

Inbound commuters 2010

43%

Inbound commuting (to Malmö)

Outbound commuting (from Malmö)

57%

2010 2009 2007

Women

Men 43%

Women

2006 2005

15 000

»» 17,300 people commuted daily by train or car across the Öresund Bridge (2011).

A reduction of 2.3% compared to the previous year and an increase of 26% over five years. The highest level was reached in 2009; since then commuting has reduced somewhat

10 000

5 000

2004 2002 2001

1995

2000

2001

2002

2003

2004

2005

2006

2007

2008

Commuters by hydrofoil

Commuters by train

Students by train

Commuters by car

2009

2010

2011

»» The majority commuted from Sweden to Denmark – 94% live in Skåne »» Many Danes have settled in Malmö, due to the difference in house prices between the countries, and a large number of Swedes work in Copenhagen »» Around 11,000 people commuted from Malmö to Denmark (2009)

6% 40%

94% Working 94%

Studying 6%

Work

Train

Study

Car

60%

Train 55%

Car 45%

19,150 vehicles per day crossed the bridge Traffic levels increased until 2008 and have since stayed at the same level. In 2011, a total of 6,988,157 vehicles (cars, trucks, buses etc.) crossed the bridge.

Öresund Bridge

43%

2000 1999

57%

1998

»» 60% commuted by train and 40% by car

0

Outbound commuters 2010

2003

1997 1996

»» 94% commuted to work and 6% to study

Photography: Leif Johansson X-Ray

Men 57%

2008

The bridge was 10 years old last year!

20 000

Men 57%

1995 -40 000

-30 000

-20 000

-10 000

0

10 000

20 000

30 000

40 000

»» Malmö is located in a mobile region where everything is nearby. Distances are short and it is easy to move about »» 60,968 people commuted to Malmö from other municipalities in Sweden (domestic inbound commuting 2010) »» 27,706 people commuted to other municipalities in Sweden from Malmö (domestic outbound commuting 2010) »» For several years, commuting has increased in both directions and has contributed to a mobile region »» The communications are good in the region. In December 2010, the City Tunnel in Malmö was inaugurated, further improving commuting options »» Large local labour markets contribute to increased flexibility, benefiting both companies and citizens. Companies have better opportunities to find the right expertise and the individual citizen has a wider choice in the labour market

Photography: Leif Johansson X-RAY Malmö Central Station

50 000

60 000

70 000

Women

Men 43%

Women

10 Population and labour market population

Population and labour market

On 1 April 2011 Malmö passed the In twenty years, the average inhabitant of Malmö has become three years younger.

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

A growing city

300 000 inhabitants mark

»» With 302,835 inhabitants, Malmö is Sweden's third largest city (31 Dec. 2011)

»» In 2026, Malmö-Lund is expected to have half a million inhabitants

»» The population increased by 3,872 people (+1.3%) in 2011. Both net birth and net migration are positive

»» Young city – nearly half of the population is under the age of 35 (48%) »» 75% of households are small households with one or two people (2009)

»» Malmö's population grew for the 27th year in a row

»» 30% of the city's inhabitants were born abroad – the largest groups were born in Iraq and Denmark

»» In 20 years, Malmö's population has increased by 68,000 residents (29%). The largest increases have taken place in the age groups 0-5 and 25-39 years

»» 175 countries are represented and around 150 languages

Photography: Leif Johansson X-RAY

Photography: Leif Johansson X-RAY

Malmö's population 1968-2011

Population by age group and sex (2011)

Thousands

Percentage age distribution

Thousands 30

320

25

300

Total

12%

10%

17%

17%

Men

13%

10%

17%

18%

13%

11%

10%

6% 4% 1%

20 280

302 835 people

260

15

13%

11%

9%

5% 3% 1%

31 Dec. 2011 10

12%

Women

240

9%

18%

16%

12%

11%

10% 7% 5% 1%

5

220

0

0 0-9

10-19

20-29

30-39

40-49

50-59

60-69

70-79

80-89

10

08

20

06

20

04

20

02

20

00

20

98

20

19

94

96

19

92

19

90

19

88

19

86

19

84

19

82

19

80

19

78

19

76

19

74

19

72

19

70

19

68

19

Women

Men

10

20

30

40

50

60

70

80

90

70-79

80-89

100 %

90+

Age 200

19

In Malmö, a thriving commercial life and university is combined with a good quality of life and a rich range of activities. This is attracting many new residents to the city, which is growing every year.

0-9

10-19

20-29

30-39

40-49

50-59

60-69

90+

12

13

Population and labour market population

Population and labour population CONTENTS market

Universities and colleges Malmö University: »» Is Sweden's ninth largest seat of learning and the largest college »» Established 1 July 1998 »» Has 24,000 students (2011) (13,173 fulltime students). When it started in 1998, the university had 5,000 students »» Offers around 100 education programmes and 500 courses »» Located in central Malmö

Metropolitan areas attract highly trained people »» 30% of Malmö's population (25-64 years) have at least a three-year tertiary education. The corresponding figure for Sweden as a whole is 24%. This puts Malmö in 17th place of 290 municipalities according to Statistics Sweden (2011) »» Newly graduated university students prefer to live 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)

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

The World Maritime University has been located in Malmö since1983.

This is a unit that, in organisational terms, is under the supervision of the United Nations (UN).

Basic facts & regional accounts

»» Malmö's gross regional product (GRP) amounted to SEK 114,362 million in 2008 (+61% in ten years). It is above all the service production that has increased. GRP per capita was SEK 403,000 »» Total disposable income in Malmö was SEK 41,936 million (+53% in ten years). Disposable income per capita was SEK 148,000 »» The total wage bill for Malmö was SEK 46,044 million (+56% in ten years). In particular, a large positive development in wages has taken place in service production

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

Gross Regional Product (GRP) in Malmö

by Industry, SEK million 60 000

700 600

50 000

500

40 000 400

30 000

300

20 000

200

In Malmö, there are around 26,000 university students.

100 0

10 000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Stockholm

Gothenburg

Malmö

Sweden

Skåne

0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Market production, goods (SNI 01-45)

Disposable Income per capita, current prices, SEK thousand

Market production, services (SNI 50-95)

Public auth. and household's non-profit org.

Non-sector allocated items

Wages by Industry in Malmö, current prices, SEK million

200

25 000

180

20 000

160 15 000

140 10 000

120 5 000

100 80

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Stockholm

Photography: Leif Johansson X-RAY Malmö University

Gothenburg

Malmö

Sweden

Skåne

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Market production, goods (SNI 01-45)

Market production, services (SNI 50-95)

Public auth. and household's non-profit org.

14

15

The quarterly development for the 10 key performance indicators is published on our website in spring and autumn

Population and labour market growth

10 interesting key figures

Guest nights

Malmö is doing well and the development is monitored continuously by 10 key performance indicators. This positive development was rewarded when the city received the prize of Growth Municipality of the Year 2009*.

Thousands

% 14

1 000 800

SEK/sq m/year 2 100

12

1 800

10

1 500

8

1 200

6

900

4

600

2

300

600 400 200 0

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

Housing construction

Commercial real estate market

1 200

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Hotels

Hostels

»» Never before have so many tourists visited Malmö – 2011 was in many respects a record year. The tourism industry in Malmö had a turnover of SEK 6.8 billion in 2011, an increase of 15% compared to 2010 »» 1.5 million visitors stayed overnight in Malmö in 2011. They stayed on average 2.21 nights per visit, which gave 3.3 million overnight stays. In addition, 5.5 million day trips were made to Malmö (excluding trips to/from work and school) »» There were 1,215,950 overnight stays in Malmö's hotels, 66,599 in the city's hostels and around 107,000 at Malmö's only camp site. There was a record for commercial overnight stays, which showed the highest level ever, at around 1,390,000 overnight stays »» Approximately 28% of the guests who stay at hotels and hostels are international visitors and 72% are Swedish visitors »» On average, the accommodation revenue per hotel room sold was SEK 867, an increase of 1% compared to 2010 Photo

»» Tourism generates employment, and during 2011 provided the equivalent of 4,758 full time jobs in Malmö

graph y: Leif Johan sson X-Ray

Guest night = each overnight guest

0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Vacancy rate Malmö/Lund

Population and labourCONTENTS market growth

0

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

Thousands

Number

150

2000 1800 1600

120

1400 1200

90

1000 800

60

600 400

30

200 0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Construction started

Newly built

»» Several new office buildings have been completed in 2011 while, at the same time, the vacancy rate has reduced somewhat, amounting to 6.6%. The Prime Rent level for office premises in the CBD (Central Business District) has increased somewhat to SEK 2,050/sq m/year

»» During 2011, 1,066 new homes were completed; 79% in multi-dwelling buildings and 21% in single-family homes

»» Malmö has, once again, a large and functional exhibition centre with conference facilities, located just to the north of Malmö Arena in Hyllie.

The exhibition centre has an area of approximately 20,000 sq m and has been developed by Midroc and it is operated by Artexis Nordic

»» In the autumn, the world's financial anxieties once again made themselves felt and housing construction in Malmö slowed.

The number of homes started during 2011 ended up at around 1,200

»» Adjoining Västra Hamnen, Wihlborgs completed Media Evolution City in late 2011. It provides a dynamic innovative environment for companies involved with film, TV, communications, computer games and mobile platforms »» Several new office projects are under development. In 2011, construction began on a number of large projects, such as Point Hyllie stage 2, Fullriggaren and Koggen II in Västra Hamnen, Fören in Dockan and Bassängkajen II on Universitetsholmen

Number of employees – daytime population

»» The number of homes started reduced, while the number of newly built homes increased.

Above all, the number of multi-dwelling buildings completed increased

»» Despite this reduction, there are good conditions for an increase in the number of new starts in 2012. In addition to housing in completed detailed plans from 2011, there are also detailed plans, which were completed in 2010, where construction has not yet started. In addition there are around 800 homes with planning permission granted, the construction of which has not yet started. The construction of the majority of these can begin in 2012. »» Despite these figures, there is great uncertainty regarding the number of new starts during 2012, due to the global financial situation. This is above all reflected in cooperative flats and single-family homes, while construction of rental units will probably continue as planned.

Multi-dwelling building = building with at least 3 separate apartments. The maximum number is unlimited.

0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number of employees

»» There were 149,825 employees in Malmö in 2011. The number of employees had increased by 2,373 or 1.6% compared to the previous year. »» The number of employees in Malmö increased, despite the financial worries in Europe and across the world. »» Over recent years, an increase has taken place in areas such as social units, travel and tourist agencies, and in electricity and heating plants. There has been a major decrease in the construction industry but also in publishing »» The number of employees in Malmö has increased by 20% in 10 years. A longterm positive development can be seen within business services, IT and computer consultants, commerce, education and within the hotel and restaurant industry.

Meanwhile, there is a downward trend in manufacturing and the agriculture/forestry/ fishing industry. »» It is above all the number of employees in the enterprise form represented by foreign legal persons that has increased the most in percentage terms, but municipalities, foundations and economic associations also show an increase. County Council employment shows a reduction Number of employees = daytime population, i.e. the number of people employed in Malmö (exc. owners of sole proprietorships) who earned at least one basic amount per year, or worked as temporary employees for more than 3 months.

16 growth

growth

...............................................................................................................................................

Unemployment

New vacancies

New enterprises

Bankruptcies

Turnover

Industrial investments

%

Thousands

Number

Number

SEK million

SEK billion

18

40

2 800

500

1 200

250

16

35

2 400

14

30

12

25

10

1 000

400

2 000

300

1 600

150

600

20

8

1 200

15

6 4

10

2

5

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

Population Malmö

Population Skåne

Population Sweden

Workforce Malmö

Workforce Skåne

Workforce Sweden

»» A review of the 2000s shows that unemployment was lowest in 2008.

The global financial crisis and the subsequent recession led to a dramatic increase, with a peak in 2011 »» The picture is the same in Malmö, regardless of whether unemployment is calculated in absolute figures, as a proportion of the workforce, or as a proportion of the population. The forecast is for some continued increase during 2012 »» In autumn 2011, the Swedish Public Employment Service began to calculate unemployment as a proportion of the workforce. This gives a higher figure than as a proportion of the population »» The total number of unemployed people in Malmö, registered with the Swedish Public Employment Service, was on average just under 18,000 people in 2011, corresponding to 13.9% of the workforce »» For young people aged 18-24, the number of unemployed in 2011 was around 3,200 or 23.5% of the workforce »» Compared to 2010, unemployment increased by 0.1 per cent in Malmö for the 16-64 age group but decreased somewhat in Skåne and countrywide. For young people aged 18-24, unemployment decreased somewhat in both Malmö, Skåne and countrywide Average per year. People in the 16-64 age group who are registered at the Employment Service in per cent of the registered workforce.

(1997-2010 = per cent of population)

0

200

800

200

100

400 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

New vacancies

»» 29,114 new vacancies were reported to the Public Employment Service in Malmö in 2011, an increase of 24% compared to the previous year »» On average, 80 new vacancies were reported every day throughout the year »» In 2011, the total number of newly reported vacancies showed an upturn again, after the financial crisis. But after summer 2011, the number of newly reported vacancies decreased, probably due to anxieties in the Euro zone and in the rest of the world. The number of vacancies was at a lower level than 2006 and 2007, but at a high level from a historical perspective »» The majority of sectors showed increased demand. The largest number of new vacancies were reported in the area 'rentals, property services, travel services and other support services'. The largest percentage increase compared to the previous year was shown by 'culture, entertainment, leisure & other service activities' and 'telecommunications', and in 'transport and storage' »» 'Public administration', 'transport equipment manufacturing', 'education' and 'healthcare and social services' showed the largest percentage reduction in demand

0

100

400

800

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Previous calculation method

2011

Number of new enterprises

0

50

200

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number of bankruptcies

0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Investments

2012

Forecast

0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Turnover, exc. VAT

»» Approximately 2,300 new enterprises are started each year (average over last 7 years.

In 2011, 8 enterprises were started every day

»» For each company that goes into bankruptcy, 7 new companies are started (average over last 7 years)

»» A strong increase in investments in Malmö during 2011. The investment level is the highest since measurements started

»» In 2011, turnover amounted to SEK 255 billion, which is the highest amount during the measurement period

»» 3,068 new enterprises were started in Malmö in 2011. This is the highest number of newly started enterprises ever! (There was a change in the activation criteria in 2010, but regardless of this the figure is very high)

»» Approximately 310 bankruptcies per year. Fewer than one bankruptcy per day (average over last 7 years)

»» Industry in Malmö invested SEK 953 million during 2011, which was an increase of 25% compared to the previous year. The largest percentage increase was shown in buildings and facilities.

»» After several years of strong growth, turnover dropped in 2009-2010 due to the economic downturn.

In 2011, turnover in Malmö increased again and is now at a higher level than during the record years of 2006-2008

»» 63% of the new enterprises were sole proprietorships and 31% were limited enterprises. An increase in limited enterprises »» The new enterprises employed 3,493 people (approximately 1.1 per company) »» The sectors that increased most during the year were hotels and restaurants, 'publishing, radio, TV, film, telecommunications', commerce and construction »» 15.1 enterprises per thousand inhabitants were started in Malmö. This compares to 20.0 for Stockholm, 13.7 for Gothenburg and 12.3 for Sweden as a whole. There is a strong entrepreneurial spirit in Malmö and for several years the city has been placed high in rankings for business creation in Sweden »» 68% of the enterprises started in Sweden in 2005 were still in business three years later (survival rate) From 2010, the statistics are based on registration data instead of the direct collection of information. New activation criteria were applied, and a new calculation basis for those employed.

New enterprises = completely newly started, or business that resumed after dormancy of at least two years

»» The number of bankruptcies has dropped somewhat after the financial crisis in 2008, which resulted in a large number of bankruptcies in 2009 as a consequence. The level however is still relatively high »» A recovery after the financial crisis can also be observed in Sweden as a whole, and in Stockholm and Gothenburg, where the recovery has progressed somewhat further in terms of the number of bankruptcies »» 364 bankruptcies in Malmö in 2011, occurring within several sectors. An increase from the previous year can be noted within the hotels and restaurant industry, and within retail. Construction has not increased since the previous year, but remains at a high level »» In recent years, limited companies have been responsible for the increase. The increase is greatest in the group with 1-4 employees.

The sectors that show an increased number of bankruptcies during the last five years are property companies, construction and transport and storage

»» In Sweden as a whole, industrial investment increased by 6% compared to the previous year.

Volume changes within industry have been mainly positive during 2011. The largest increase was in the textile industry.

The paper and pulp as well as the steel and metal industries also showed large increases »» The forecast for Malmö for 2012 shows an investment level of SEK 963 million, i.e. investments are expected to remain at this very high level. A few months into 2012, the forecast had been revised downwards

by SEK 50 million, but despite this lay at a high level »» For Sweden in total, the original forecast for 2012 showed an increase of 7% compared to 2011. The forecast is unaltered some months into 2012

Industry = SNI code B+C i.e. "extraction of minerals" and "manufacturing". 2012 = forecast

»» During the last 10 years, turnover in Malmö has increased by 51% »» Sectors that have shown a strong increase in turnover during recent years are 'technical consultancy agencies and analysis companies', 'sport, leisure and entertainment facilities', and 'insurance companies and pension funds' »» Other sectors that have shown an increase are 'recruitment and employment companies', 'industry', 'artistic, cultural and entertainment businesses', 'electricity and heating plants', and 'veterinary clinics' »» One sector where turnover has decreased significantly during both 2010 and 2011 is the construction industry

18

19

Population and labour market workforce

Population and labour workforce CONTENTS market

Geographical development, workforce

Growth and positive outlook on the future Malmö has a flourishing commercial life with strong growth and great confidence in the future.

2000

2009

2010

Development 10 years

Development vs. previous year

Stockholm

530 731

568 447

589 796

59 065 11%

21 349 3.8%

Gothenburg

264 846

293 807

300 886

36 040 14%

7 079 2.4%

Malmö

131 289

148 931

154 446

23 157 18%

5 515 3.7%

Lund

55 269

64 721

66 154

10 885 20%

1 433 2.2%

Helsingborg

55 876

61 986

63 343

7 467 13%

1 357 2.2%

482 596

523 568

537 594

54 998 11%

14 026 2.7%

4 051 870

4 280 743

4 392 720

Skåne Sweden

In the 1990s, Malmö went through a tough period in which several industries were closed down and the active workforce shrank. During this period, decisions were made to start the construction of the Öresund bridge (inaugurated in 2000) and to establish Malmö University (founded in 1998).

Two of the many initiatives that have contributed to Malmö's transformation from an industrial town into a knowledge city.

340 850

»» Malmö shows a solid development in the size of the workforce

8%

111 977 2.6%

»» In Sweden as a whole, the size of the workforce has increased by 8% over a 10 year period. The corresponding figure for Stockholm is 11%, Gothenburg 14% and Skåne 11%

»» The size of the workforce with its workplace in Malmö has increased by 18% in 10 years

From industrial town to knowledge city

Workforce by industry Percent, % 18

»» Today, a large number of people work within various knowledgeintensive service sectors in Malmö.

Only 7% work in manufacturing. This is a lower figure than for Sweden as a whole, where 14% work in manufacturing

16 14 12

Photography: Leif Johansson X-RAY 10

Workforce development, daytime population Thousands

6

160 149

146

150

151

154 149

143

140

137

140

»» An increase of 3.7% compared to the previous year and an increase of 18% over ten years

120 111

»» Over the last 10 years, it is primarily the areas business services and education that have increased. Manufacturing has decreased

118

110 100

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1980

1970

90

1960

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

4

Workforce (16+ years) with workplace in Malmö.

The figures include both owners of sole proprietorships and employees in all forms of enterprise. RAMS SCB.

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

2

»» A workforce of 154,446 has its workplace in Malmö

128

130

»» The largest proportion of Malmö’s workforce work in business services (16%), followed by commerce (15%), healthcare and social services (13%) and education (9%)

8

0 es

sin

Bu

s ce

rvi

e ss

e erc

mm Co

Malmö

n

o ati

uc Ed

c

so re,

Ma

nu

t fac

ac xtr de

t or

sp

n Tra

n

tio

n

ga

in ur

a hc

alt

He

s ce

rvi

se ial

ing

us

an

a dw

o reh

uc

str

n Co

or Inf

vit

cti

a ion

t ma

d an

m co

lic

b Pu

n

o ati

ic un

m

t

ion

y

m

ad

Sweden

Sectors sorted in descending order of size.

Workforce, daytime population 2010 (+16 years).

RAMS SCB. SNI2007.

n

na

io rat ist

in

ce

fen

e dd

lt Cu

u

a ral

on

ers

p nd

s ce

ts an ur

rvi

se al

els ot

d

ta res

an

H

n la

ia

nc

a Fin

a ur

ns di

s ce

rvi

e es nc

ac te sta

le

a Re

, ply

up

En

ys erg

s

itie

tiv

s ce

rvi

se tal en

nm

o vir en

u

ult

ric Ag

re,

try

es for

s

rie

he

an

s d fi

ow

kn

Un

s

es

sin

u nb

»» Sweden as a whole differs from Malmö in terms of which areas have the highest workforce.

In Sweden, the largest group is healthcare and social services (16%), followed by manufacturing (14%)

20

21

Population and labour market workforce

Population and labour workforce CONTENTS market

Industry trend (number of employees) Financial and insurance services

Information and communication

IT and computer consultants

Other business services

Agriculture, forestry and fishing

Manufacturing

Commerce

Transport and warehousing

Rentals, property services,

Real estate and administrators

Education + R&D

Energy, water, waste etc.

Construction

Hotels and restaurants

Culture and entertainment

travel services and other support services

Law, economics, science and technology

Healthcare, social services

18 000

24 000

22 000

26 000

16 000

22 000

20 000

24 000

20 000

18 000

22 000

18 000

16 000

14 000 12 000

16 000

10 000

14 000

8 000

10 000

6 000

8 000

0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1994-2008 SNI 2002, 2009-2011 SNI 2007

2009 2010 2011

16 000

12 000

14 000

10 000

12 000

8 000

10 000 8 000 6 000

4 000

4 000

2 000

18 000

6 000

6 000

4 000

20 000

14 000

12 000

2 000

2 000

0

0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1994-2008 SNI 2002, 2009-2011 SNI 2007

2009 2010 2011

Public administration and defence

4 000 2 000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

2009 2010 2011

0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

2009 2010 2011

1994-2008 SNI 2002, 2009-2011 SNI 2007

1994-2008 SNI 2002, 2009-2011 SNI 2007

'Other business services' includes, for example, legal, economic, architectural and technical consultancy activities, advertising and market research, staffing and recruitment, call centres, cleaning and other consultancy services to businesses.

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

Percentage change 2009-2011

Long-term trends

»» The sectors that show the largest percentage increase in the number of employees are 'public administration and defence', 'healthcare, social services', 'law, economics, science and technology', and 'hotels and restaurants'

Due to the changes in the division into sectors, it is not possible to make any detailed long-term analysis, but only to summarise the overall development in a few short comments:

»» 'Education', 'energy, water, waste' and 'transport and warehousing' also show some increase »» Sectors that show a decrease are 'construction', 'agriculture/ forestry/fishing', 'manufacturing' and 'information and communication'

From 2009, the data is shown according to the new division into sectors. For this reason, there is a break in the time series in the graphs. Even in those cases where the sector name is the same, both before and after 2009, such as 'manufacturing', the underlying division

»» A positive long-term development can be noted within business services, IT and computer consultants, commerce, education and within hotels and restaurants »» A downward trend can be seen within manufacturing and agriculture/forestry/fishing

may have changed. Therefore, the data for the new and old divisions into sectors cannot be compared. We have chosen to retain and present the old definitions in order to give an impression of the long-term development.

22

23

PopulationSTRUCTURE CORPORATE and labour market

PopulationCORPORATE and labour STRUCTURE CONTENTS market

Onward for entrepreneurship

Workplaces

Many new enterprises are being started and already established enterprises are choosing to relocate their operations to Malmö. The number of workplaces has increased significantly and today's corporate structure comprises to a large extent small and medium sized companies.

Legal form

1996

2011

Limited company Sole proprietorship General and limited partnership

8 281 6 126 1 953

12 555 14 252 2 185

Other, public sector

1996

2011

Change

52% 133% 12%

72 835 759 1 250

96 860 1 939 1 946

24 025 33% 1 180 155% 696 56%

785

845

60

8%

29 997

40 263

10 266

Other

1 672

2 486

814

49%

8 755

8 817

62

1%

Total

18 817

32 323

13 506

72%

113 596

149 825

36 229

32%

34%

Legal form of enterprise 3%

The many new companies reflect the driving force present in Malmö

8%

7% 43%

»» Malmö had 149,825 employees spread across 32,323 workplaces »» The number of employees in Malmö has increased by 32% in 15 years Photography: Leif Johansson X-RAY

Trends in the number of workplaces

General and limited partnership

120 000

25 000

Other public sector

100 000 20 000

Other

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

Employees

Data for November for the respective year. The increase is due to status rule changes made in 2010 and 2011 to adjust over and under coverage in the company register.

39%

Limited company

140 000

30 000

Definition of the number of employees = daytime population, i.e. the number of people employed in Malmö (exc. owners of sole proprietorships) who earned at least one basic amount per year, or who worked as temporary employees for more than 3 months

»» 43% of the workplaces had the enterprise form sole proprietorship, and 39% belonged to the group limited companies, which are the two most widespread enterprise forms in Malmö »» The number of workplaces in the group sole proprietorships has more than doubled in 15 years and in the group limited companies the number has increased by 52%.

Sole proprietorship

160 000

35 000

Workplaces

4 274 8 126 232

Change

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

The number of employees and workplaces has increased significantly

»» The number of workplaces has increased by 72% in 15 years

Employees

»» The establishment of many new companies reflects the entrepreneurial spirit to be found in Malmö and the changes the city has undergone – from a structure with a number of large companies to one with many smaller companies »» The largest proportion of employees is to be found in limited companies. The number of employees in limited companies has increased by 33% in 15 years

24

25

PopulationSTRUCTURE CORPORATE and labour market

Population CORPORATE and labour STRUCTURES CONTENTS market

Workplaces Owner control

2002

Employees 2011

Change

2002

2011

Change

Government

283

205

-78

-28%

15 139

14 024

-1 115

-7%

Municipal

673

718

45

7%

19 860

22 512

2 652

13%

County council

77

84

7

9%

8 882

10 206

1 324

15%

Private Swedish exc. group

18 605

25 525

6 920

37%

23 752

28 450

4 698

20%

Private Swedish inc. group

2 888

3 965

1 077

37%

36 986

40 235

3 249

9%

Foreign

1 085

1 826

741

68%

20 127

34 398

14 271

71%

23 611

32 323

8 712

37%

124 746

149 825

25 079

20%

Total

Processed data for foreign-owned companies in 2010 (source Swedish Agency for Growth Policy) is on the next page

»» Foreign-owned companies showed the largest increase in the number of employees; an increase of 71% since 2002. »» The number of employees has increased Among foreign-owned companies, there are also companies the public would consider by 20% since 2002. The increase has Swedish but which are registered abroad occurred above all in the private sector »» 69% were employed in the private sector and 31% in the public sector

Foreign-owned workplaces Number of foreign-owned workplaces 1 800

3636000 000

1 600

3232000 000

1 400

2828000 000

1 200

2424000 000

1 000

2020000 000

800

1616000 000 In 2000, the Öresund Bridge between Sweden and Denmark was opened.

600

Number of workplaces by number of employees Sector

0 employees

1-2

Farming, forestry and fishing

675

28

12

1

Manufacturing

622

171

213

130

Energy, water, waste etc.

3-9 10-49 50-249

250-499

400

+500

Total 716

45

2

1

1 184

44

14

12

16

9

2

97

Construction

1 026

379

200

140

39

2

1 786

Commerce

2 657

947

1 020

464

68

2

1

Transport and warehousing

403

303

143

93

24

6

2

Hotels and restaurants

421

284

255

146

9

1 675

351

217

125

42

2

2 412

381

87

93

43

10

1

615

2 212

354

155

45

10

4 484

1 043

523

217

41

1

810

272

188

128

59

5

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

Education Healthcare, social services Culture, entertainment and recreation Other services

5

12

30

36

37

2 776

5

100

151

227

67

3

742

229

264

265

50

4

2 116

203

105

45

9

1

1 713

318

161

61

5

2 182

524

188

8

2

Total

20 721

5 103

3 744

974 1 115

547

Other

5 159

6 309 3 2

1 465 127 1 095

4

1 558 2 479 2 258 198

2011. SNI2007. The number of employees does not include owners of sole proprietorships.

36

13

32 323

31% of those employed in Malmö work in a foreignowned company (exc. public sector)

The service sector has increased significantly over the last 10-15 years and today accounts for a considerable proportion of trade and industry »» Malmö's trade and industry is largely composed of small and mediumsized companies. This is the same structure as for Sweden as a whole »» A large proportion of the workplaces in Malmö have no employees »» Malmö has a mixed business community that includes many different sectors, which gives the city a solid and diversified base »» 97% of Swedish trade and industry consists of so-called micro enterprises with fewer than 10 employees, which represented nearly one quarter of trade and industry's added value in 2010.

Large enterprises constituted scarcely a thousandth of the number of enterprises, but represented more than 40% of added value

1212000 000 8 8000 000 4 4000 000

200 0

1996 1997

1998

1999

2000 2000 2001 2001 2002 2002

2003

Foreign-owned workplaces

2004

2005

2006 2007 2006

2008 2009 2009 2010 2010 2008

Employees in foreign-owned companies

00

»» 31,239 people worked in 1,521 foreign-owned workplaces in Malmö (2010) »» 5% of Malmö's workplaces were foreign-owned (exc. public sector) »» The number of foreign-owned workplaces has increased by 87% in 10 years »» The number of employees in foreign-owned workplaces has increased by 70% in 10 years »» 1,104 workplaces had employees »» 525 workplaces had 10 or more employees »» 68 workplaces had 100 or more employees

Among Malmö's largest foreign-owned companies are firms such as Manpower, Pågen, ISS Facility Services, Arriva, G4S, Logica, Trygg-Hansa, E.ON and IKEA.

Number of foreign-owned workplaces by country 350

305 300

250

216 182

200

146

141

150

121 86

100

86

104 70

64

50

0

Denmark

France Rest of the world United Kingdom USA Finland The Netherlands Luxembourg Rest of Europe Norway Germany Foreign-owned places of employment by country (2010)

»» The largest investor countries in terms of the number of workplaces: Denmark (20%), Norway (14%), the United Kingdom (12%) and Germany (9%) »» Most workplaces are found in the areas commerce, property, business services and communication

26

27

Good growth gives top rating

Malmö's profile areas

Malmö shows rapid development of the local economy under good management. This was the assessment made by the global credit institution Standard & Poor's, which has given Malmö an AAA rating, the highest possible credit rating.

Malmö city is engaged in a number of business promotion initiatives regarding development, creative environments and meeting places for entrepreneurship. Examples of such initiatives include:

Malmö focuses on a number of profile areas in a business context.

These are areas in which Malmö's strengths are considered to be particularly successful in terms of more employment opportunities and greater growth. Read more on www.malmobusiness.com under "Profile areas".

Ma

»» MINC (Malmö Incubator, celebrating its 10th anniversary)

profile areas: Headquarters Photography: Leif Johansson X-Ray

»» Medeon

l

even s s ' mö

»» Malmö Cleantech City »» Media Evolution City »» Medical Malmö

Malmö's trade and industry policy vision

We will make Malmö the Öresund Region's most innovative and exciting city, where it should be especially inspiring to establish, run and develop enterprises.

Hospitality industry

Life Sciences

Logistics

Photography: Leif Johansson X-Ray

Cleantech

Photography: Leif Johansson X-Ray

New Media

Commerce

Turning Torso is Sweden's highest building (190 metres)

Straight facts!

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

Sources: Business Register (Statistics Sweden) European Spallation Source Jones Lang LaSalle Malmö University Statistics Sweden

» The report is available in Swedish and English

Swedish Agency for Economic and Regional Growth

» Read and download a digital version from our website

Swedish Agency for Growth Policy

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

Swedish Public Employment Service Ørestat Øresund Bridge Öresund Committee

Number of copies (English edition): 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.

IC ECOLAB RD O

EL

Office address Lugna gatan 84 Postal 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

N

Trade and Industry Agency

341 140 PRINTED MATTER

Photograph front cover: Västra Hamnen, Leif Johansson X-Ray