BUSINESS INDEX NORTH Business, people, knowledge and work in the arctic d Bullvåg, Nord University Business Schoo ol
Nord Un niversity h North Center Business School CHNL
elevant joint research projects International Arctic Petroleum Cooperation: Barents Sea Scenarios for oil and gas. 14 chapters delivered by 28 researchers from Norway and Russia Key scenarios contributors The role of the Russian and Norwegian businesses and authorities: Contributors Reviewers Feedback/participants at workshops in Russia and Norway G U B K I N RUSSIAN STATE OIL & GAS UNIVERSITY
Project partners
Business Index North (BIN) us on trends, opportunities and development challenges in Arctic regions nual report next 3 years th insight and trends in business ivity, people, work, logistics, knowledge e, innovation, natural resources and cooperation in the tic get groups: Investors, politicians, authorities and ncies, academics, media, ngo s and companies interested in ue creation in the Arctic and the High North
SCOPE: BEAR (Barents Euro Arctic Reg gion Murmansk and Arkangelsk) ++ Core of inhabited arctic Phase 1 High potential area Phase 2 from 2017 New sea routes New energy opportunities Safetey and security challenges : The Norwegian Barents Secretariat
PEOPLE IN THE NORTH 8,1 % 1,666 million people
1,66 million in Scandinavia 1,21 million in Russia, 2,8 million in total
Population change last 10 years (2005=100) 108 Index 2005 = 100 107 106 105 104 103 102 101 107,6 102,2 1,66 mill i Skandinavia 1,22 i Russland 100 2005 2006 2007 2008 2009 2010 Norway, Sweden and Finland in total 2011 2012 2013 2014 BIN area
Changes last 10 years in % Lapland Kainuu North Ostrobothnia Finland -7,1-2,2 4,1 6,4 Finnmark Troms Nordland Norway 2,3 3,7 6,4 11,3 Russian regions be included in 2 Norrbottens län Västerbottens län Sweden total -0,7 1,8 7,7-10,0-5,0 0,0 5,0 10,0 15,0
Changes and age groups Index 2005 = 100 Index 2005 = 100 126 104 110 12102 108 116 100 106 104 98 111 65 + years 20-39 years 19 years and below 124,3 101,7 108,4 122,8 102 96 106 94,2 101,9 100 94 101 92 98 96 90 96 2005 2005 2006 20062007 20072008 20082009 2009 2010 2010 2011 2012 2012 2013 2013 2014 2014 Norway, Norway, Sweden Sweden and and Finland Finland in in in total total BIN BIN BIN area area area Problematic situation: How to make it attractive to live in the Arctic for young people? Ample space for m More people nee
WORK IN THE NORTH 748596 employees, 7,9 % of workforce in the Nordic countries
Employment Profile Less finance, services, trade, it and manufacturing More fish and forrest, defence, public sector, construction, harbour, health services 25,0 % 20,0 % 15,0 % 10,0 % 5,0 % Total BIN Area 3,4 % 1,1 % 1,3 % 2,1 % 4,1 % 4,6 % 5,5 % 6,8 % 7,7 % 9,7 % 10,0 %10,6 % 11,5 % 0,0 %
Net job creation last 10 Years Losses: 15444 Gains: 25473 ricity, gas, steam and air conditioning Accommodation and food blic authorities and national defence eal estate, professional, scientific and man health and social work activities Construction Education Sum area Agriculture, forestry and fishing Trade -0,2-2,5-0,2 9,3 9,0 7,8 15,3 6,6 8,6 6,2 9,5 5,7 8,3 4,5 1,4 7,0 6,7 1,4 3,1 1,1 ½ of national Job creation speed Job creation speed North 2,2 net jobs per 1000 worker/year Job creation speed No-SWE-FIN 5 net jobs per 1000 worker/year Transport and storage -4,3-4,1 Information and communication -4,4 4,1 Financial and insurance activities -6,3-2,3 Mining, quarrying, manufacturing -10,5-13,4 BIN Area -15,0-10,0-5,0 0,0 5,0 Total Finland, Norway and Sweden 10,0 15,0 20,0
Business in the North
Strong Business cycle in North Norway 5 4 3 2 1 0-1 -2-3 -4-5 5 4 3 2 1 0-1 -2-3 -4-5 Demand growth
Gives strong turnover growth 220 200 180 160 140 192 188 167 North Norway 264 Billio 120 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nordland Norge Troms Finnmark Source: Eniro ASA and Indeks Nord Index turnover in 2005=100
USSIA Share of turnover 2012-14 from unchanged goods/services and new product innovations 0,9 "Old" products "New" products (to company and market) 100,0 14,5 7,9 8,0 80,0 60,0 60,7 New products in Sakhalin oil driven 40,0 99,1 85,5 92,1 92,0 20,0 39,3 0,0 Murmansk Arkhangelsk North-West Russia Russia Sakhalin
Ocean economy drives Arctic: 13 % of Norway, approx 5 % of Russian workforce Strong Russian positions Strong Norwegian positions
Huge potential for value creation- example of products Examples Snehvit and Goliat oil and Gas fields in Finnmark Norwegian Salmon. Sold from te north to 104 countries every week Polar bread Alvsbyn, Sweden Selling Lapland bread to France and 100 other countries Vasterbottens cheese strong branding from the North, exclusive cheese Ice hotel (Kiruna), global tourist hotspot Kalix troutroe caviar to selective restaurants Alvsbyhus (Swedish) Advanced energy efficient tree houses
Arctic Strategies The Arctic region is in a process of far-reaching change. Opportunities in energy production, shipping, fishing, trade, tourism, technology, bioscience, security, almost endless list. Best We need more people, jobs and innovation to make the high north attractive
dvice to investors: Race to the Arctic
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