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Why can Sweden become a manufacturing power?

Sweden is a highly economically developed country with a population of less than 10 million but has spawned many world-renowned manufacturing enterprises. Sweden has long been at the forefront of the most creative national rankings in the world, and it is awe-inspiring! custom plastic parts manufacturers


Sweden has a total population of 9.9 million (Statistics for 2016), which is far behind the population of one of our own municipalities in China. However, this country is known as a “small country and big industry,” and not only has its own aviation industry, nuclear industry, automobile manufacturing industry, Advanced military industry, and the world’s leading telecom and pharmaceutical research capabilities. In software development, microelectronics, telecommunications and photonics in the area, but also living in the world’s leading position.


There are several well-known Swedish manufacturing companies such as Volvo Cars, ABB Electric, Skanska Engineering, Electrolux, H & M, IKEA, SKF Group … Many of them are Fortune 500 regulars ! It is no exaggeration to say that Sweden, by population ratio, has the largest number of multinational corporations in the world. In the end what kind of unique genes created Sweden today’s strong? custom plastic parts manufacturers.


▌ Local conditions and development characteristics

Sweden is relatively sparsely populated but has a wealth of high-quality iron ore, with proven reserves of 3.65 billion tonnes and vast forests covering 54% of the total volume and 2.64 billion cubic meters of timber. One “iron” and “wood” has always been a solid material foundation for the survival and development of the Swedish industry.


At the beginning of the European Industrial Revolution in the mid-19th century, Sweden entered the stage of primary industrialization, and industrial systems centered on primary manufacturing such as wood processing and mining emerged as the times require. Following several industrial upgrades, Sweden, on the basis of which it gradually developed industries such as mining and metallurgy, specialty steel smelting, machinery and equipment, precision instruments and furniture manufacturing, gave birth to a large number of industries such as Kiruna Iron Works (LKAB, 1890 ), Well-known companies such as SKF Bearing Company (SKF, 1907), Volvo Car Corporation (1927) and IKEA (1943). In 1998, Stora-Enzo Paper Group, a joint venture between Sweden and Finland, ranked second in the global paper industry. custom plastic parts manufacturers


At present, mining and metallurgy, forestry and paper making, machinery manufacturing, pharmaceuticals, electricity and communications have become the six pillar industries in the Swedish economy, with output accounting for about 35% of the GDP. custom plastic parts manufacturers


▌ take advantage of the situation, adjust the industry

In World War II, Sweden pursued its neutral policy and spared the trauma of war. After the war, Sweden experienced two industrial upgrades and structural adjustments. Each time it seized the opportunity, Sweden decided decisively and decisively to achieve the best market positioning. Rui Zeng vigorously develop the shipbuilding, automotive, chemical industry, machining and other industries, was once the world shipbuilding power.


However, with the rise of the shipbuilding industries in Japan and South Korea and other places, the Swedish shipbuilding industry has been strongly challenged. Sweden has reluctantly abandoned the shipbuilding industry and completely rescued the shipbuilding industry. In the late 1970s, the pace of economic development slowed down significantly. Rui opened up new paths and implemented industrial restructuring. By vigorously developing modern hi-tech manufacturing industries such as telecommunications, biology, medicine and spaceflight, the second industrial upgrading was realized and the economy recovered And inject new vitality into growth. In the early 1990s, due to the global economic crisis, the economy of Ruijin experienced a recession and decisively abandoned the production of loss-making cars, leaving only the truck manufacturing industry with obvious advantages in the international market. At the same time, it intensified its efforts in telecommunications, electronics, environmental protection, energy and biology , Pharmaceuticals, chemicals, metallurgy, papermaking and wood processing and other areas of investment, so that the industrial strength to a new level. custom plastic parts manufacturers

▌ Government set up a stage, business singing

Historically, every upgrade and restructuring of the Swedish industry can not be separated without the strong government support. Whenever enterprises face external difficulties, the government can timely introduce preferential policies to be supported. In the late 1980s, the government stimulated the export and development of Swedish multinational corporations through such measures as currency devaluation, helping the Swedish economy to get out of the depression.


In 1991, the government conducted a reform on the tax system, reducing the corporate income tax from 40% to 28% and supporting preponderant enterprises with preferential policies. Since the early 1980s, Sweden has successively constructed 24 science and technology parks, attracting domestic and foreign enterprises to invest in R & D in Sweden, and promoting the growth of high and new technology personnel in Sweden and industrial upgrading. Among them, KISTA Science Park has become the second largest science and technology park in the world after Silicon Valley in the United States. In recent years, the government has invested billions of dollars in strengthening the construction of broadband networks and greatly improved the environment for the development of the information industry. custom plastic parts manufacturers

▌ science and education legislation, pay attention to research and development

Sweden pursues the policy of establishing a nation through science and education. The government and enterprises have always placed the world’s highest investment in scientific research. Government investment in science and education accounted for more than 3% of GDP, accounting for more than 8% of the central budget. Volvo, ABB and other famous multinational corporations for research and development costs account for more than 20% of corporate profits.


More Swedish research institutions, high-quality personnel, strong reserve force. There are 70,000 research institutions of various kinds in the country and 47 colleges and universities of all kinds. The researchers account for 16% of the total workforce in the country and about 400,000 students are enrolled in schools. R & D projects do not seek exhaustive, but for specific areas of excellence. There is a close relationship between research, education and production. Scientific research achievements can be quickly translated into benefits and profits for enterprises. Their products thus have a long-lasting international competitiveness. custom plastic parts manufacturers


In 1907, the first ball bearing technology developed on the basis of this SKF company is still the world leader in bearing industry. In 1952, the Roche Brothers Tetra Pak, which was established with its flexible packaging technology, is now the world’s largest supplier of flexible packaging. Asthma and stomach special effects have been developed by Astra.

▌ the pursuit of quality, build brand

Swedish products to produce sophisticated, high-quality known, known as the hometown of design. The Swedish design novel and chic, simple and elegant, functional, in the world has become a symbol of quality and taste, virtually increase the market value of the product.


H & M apparel companies have full-time product designers nearly 100 people, through the globalization chain production arrangements, the last century that among the world’s top 500, the brand has become synonymous with leading the fashion. In order to avoid the damage in the process of transportation, IKEA Furniture Company flatly disassembles and sells furniture and is widely welcomed. In order to avoid too many customers, staff services are not in place, the company introduced a very humane and open warehouse, since the shopping of goods. IKEA concept was born. Volvo and Saab Motor Co. made a big fuss about safety and competing to invent various accessories that contribute to the safety of their vehicles, such as seat belts and airbags. They rank among the best in automobile safety tests and are known as the world’s two sedan brands On the safest car. custom plastic parts manufacturers

▌ Look international, attach importance to cooperation

In the domestic market is small, the Swedish manufacturing industry has long been sights on the international market. In the past two decades, the share of Sweden’s exports in its GDP has increased from 30% to 60%, and its foreign trade has shifted from a deficit to a surplus. In addition, Swedish companies continue to increase overseas investment and set up branch offices and manufacturing plants in various regions of the world. Only Ericsson’s investment in China amounts to 5 billion U.S. dollars and its mobile switching system has a market share of more than 40% in China. custom plastic parts manufacturers


Sweden is also at the forefront of international mergers and acquisitions. Electrolux Appliance Co., Ltd. merged with or acquired more than 20 home appliance companies in the world during the 1970s and 1980s, becoming one of the world leaders in home appliances. In 1988, ASEA Electric of Sweden and BBC Electric of Switzerland merged to form ABB Electric Company, becoming the electrical giant for producing large generators, automatic control systems, transformers and robots.


The Swedish manufacturing industry has adapted its measures to local conditions and made the best use of the situation. It attaches great importance to the promotion of productivity by scientific and technological progress and timely updates and restructuring of its industries. Its products are also well known in the world for their excellent quality and unique design, making them Sweden’s business cards. custom plastic parts manufacturers

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