Industry

INDUSTRY

From the aspect of contributing to GDP, industry maintained its leading position in 2014. The share of industry in the Slovak Republic on GDP generation in constant prices in 2010 reached 23.2%, of which industrial production represented 19%. In 2014, the recorded year-on-year increase in the sale of industrial goods abroad was 1.35%. In the same period, the purchase of industrial goods from abroad also increased on the year-on-year basis by 3.36%. A positive balance of foreign trace representing 8.35% of the foreign trade turnover when compared to 2013 decreased on the year-on-year basis by 0.98 p.p., while the value of the share of goods competing on the market with quality decreased to 35.89% in 2014 when compared to 37.25% in 2013. On the other side, in 2014 the share of goods competing on the market with price increased to 39.99% when compared to 38.92% in the previous year. Goods with a deficit of price competition reported an increase in the share from 12.27% to 13.46% and goods reporting structural problems decreased from 11.56% to 10.56%.

From the aspect of shares on GDP generation, employment and development of the most significant economic indicators, the following fields and sub-fields dominate the processing industry:

·       Transport means manufacturing;

·       Metal and metal construction manufacturing;

·       Manufacturing of electronic and optic appliances and electrical equipment;

·       Manufacturing of machines not included elsewhere;

·       Manufacturing of rubber products and processing of plastic;

Such trend should continue also in the future.

The development of industrial manufacturing, considering openness of the Slovak economy and orientation at export, depends on the demand of foreign markets focused on the export of Slovak industrial goods. Competitiveness of the Slovak production based mainly on price competition represents a risk from the long-term perspective. Goods quality of which will not increase in the future will be pushed out by production from fields with cheaper labour force. The key for ensuring development of industrial manufacturing remaining in the business sphere must thus be seen in dealing with reproduction of investment assets, aligning productions with the requirements of the environmental legislation (mainly with the guideline on industrial emissions) and in investing in the best available technologies. Effective support for investment and optimal use of investment aid within regional investment aid should continue to remain a relatively quick and effective tool of further development.

In connection with lagging behind of the Slovak industrial production in the field of realising innovations and mainly with the long-term decrease in the value added created at the unit of input materials and energies, positive changes are expected from the implementation of the Strategy of Research and Innovation for Smart Specialisation of the Slovak Republic basic aim of which is to show that the Slovak Republic is able to strategically manage and concentrate permanently limited resources with the aim of sustainable development considering principles of smart, sustainable and inclusive growth for strengthening competitiveness of the Slovak Republic and the European Union as a whole.