In this article, we present a brief but enlightening snapshot of what are the conditions where RFID tags manufacturers evolve in the EU, as well as, by similarity, manufacturers of technological products that export between member states and the rest of the world.
In Trace ID, as European RFID tags manufacturers, we closely observe the evolution of the industry to which we belong. It is impossible that we were oblivious to the effort that the European industrial sector makes to not only maintain itself but to stand out and lead in a very competitive global market. More competitive, even, if we talk about activities of a high technological level. Let’s see some information below to locate ourselves.
How heavy is the industrial sector in the EU economy?
The industrial sector employs 17.4% of the active population of the European Union; which means 38,983,700 employees out of a total of 223,843,000 workers.1 In economic terms, the industrial sector generates 19.6% of the EU GVA, which is 2,772,617 million euros.2
RFID tags are products of high technological level, and within the industrial sector, the activity of manufacturing RFID tags is included in the manufacture of computer, electronic and optical products. According to Eurostat, this has been the fifth activity that most increased its production from 2010 to 2016, and its index of turnover has grown by 10.2% from 2015 to 2019.3
EU imports and exports
Regarding imports and exports of industrial products in the European Union, according to the Eurostat-Statistics Explained article, International trade in goods, the three main actors in the world are the US, China and the European Union, followed quite far by Japan and South Korea.
The sum of EU28 exports and imports with the rest of the world reached 3,936,000 million euros in 2018, and both imports and exports increased compared to 2017. If we focus on exports, between 2016 and 2017, exports rose 7.7% to continue rising by 4.1% in 2018. Among the EU member states, the highest percentage of exports to non-EU member states was from Germany, with 28%, followed by the UK (11%), Italy (10.5%) and France (10.4%).
The main destinations of exports from the EU, in 2018, are the US with a share of 20.8%, China (10.7%) and Switzerland (8%). However, although the main partners for imports into the EU are the same, the percentages do not follow the same order, in this case, China is the main exporter to the EU, with a percentage of 19.9%, followed by the US. (13.5%) and Russia (8.5%).
On the subject of internal trade between EU member states in 2018, it was also Germany that reached the highest percentage, with 22.2%, followed by the Netherlands (13%) and France (11%).
International trade for products in the EU
Following the data provided by Eurostat-Statistics Explained in the article International trade in goods, comparing exports with imports by products, the percentages of exports are higher in —Machinery and vehicles, —Chemicals, —Food and beverages, —And other products.
On the other hand, the EU imports are higher than exports in —Other manufactured products, —Energy —and Raw materials.
If we look at the balances between imports and exports by products, of the years 2013 and 2018 compared, we verify that the turnover in millions of euros of exports has exceeded in all cases those of imports, except in Other manufactured products. We see it in the following graphic.
Perspective as a manufacturer of RFID tags in Europe
The percentage of application of RFID technology in European companies, according to Eurostat data in 2017.5 is very low for countries such as Romania, Greece or Hungary, with only 7% of companies using RFID technology, and low with 23% of companies in Finland; Although we have found differences between these figures, since as Eurostat reports for Spain 15% of companies with RFID technology applied, and for the same year, 2017, the National Institute of Statistics (INE)6 points 22.58%.
In any case, they are very low application rates of RFID technology. Taking into account, the enormous advantages and profits that RFID technology brings; and also, that the processes of production, logistics, the retail sector, and the security and traceability of assets and people, have entered in the universe of 4.0 technologies, it is impossible to imagine a very near future without RFID technology in most companies. Therefore, the future and growth of RFID technology companies (specialized engineering, RFID tag manufacturers, RFID hardware manufacturers, distributors, software developers, etc.) are assured.
In future articles, we will continue to develop the state of RFID technology in Europe and in the world. We hope that all this information is useful to our blog visitors and if you need top-quality RFID tags, contact us. Trace ID we are manufacturers of RFID tags, pioneers in Europe, since 2007.
Sources: 1.- Idescat, Indicadores de la Unión Europea, Población ocupada de 15 a 64 años, 2019. 2.- Idescat, Indicadores de la Unión Europea, Valor añadido bruto por sectores, 2019. 3.- Eurostat, Turnover in Industry: Manufacture of computer, electronic and optical products, 2019. 4.- Eurostat-Statistics Explained, International trade in goods, 2008-2018. 5.- Eurostat, Enterprises using radio frequency identification (RFID) technologies, 2014-2017. 6.- INE, Encuesta de uso de TIC y comercio electrónico en las empresas, “Tecnologías de identificación por radiofrecuencia (RFID)”, 2017. Main photo: Potsdamer Platz Arkaden, Berlin, Germany. Author: Kovah, en Unsplash.