NORDIC UNIT GROUP
TOP EXPORT SALES TO NORWEGIAN MARKET
NEW PROJECTS BASE AT 300 BILLION EUROS FOR BUILDING AND INDUSTRY SECTOR
NORWAY – ONE OF THE WEALTHIEST IMPORTING COUNTRIES
A new method of calculating wealth resulted in 2018 World Bank ranking Norway the richest country in the world on the matter of the wealth per capita.
World Bank translated wealth into the various nations’ available resources, both now and for the future. It means simply speaking that Norwegians during their lifetime have the best match in the world on what they will earn and what kind of additional resources the state will have available for them.
The wealth building of the Norwegian state and citizens started in 1969 with the discovery of large resources of oil in North Sea. Right from the start the governing parties in the country decided to secure the wealth for the future of the people in country.
Today, 50 years later, all the wealth from oil resources are gathered in Norwegian Pension Fund, previously known as The Norwegian Oil Fund. The backbone of the fund has been one simple rule: We do not use the income from oil sales. We invest it outside of Norway and only use a little percentage of the achieved revenue from these investments. In end of the 2019 the value of the fund was over 10.000 billion NOK.
Even as the market price of the oil is volatile in times and the oil industry in Norway – as in every other oil production country – follows market`s highs and lows, the 50 year old state tradition has secured Norway`s position among the wealthiest countries in the world, with the most secured citizens and their businesses – making Norway`s export market to one of the most stable markets worldwide. The demands of the Norwegian market towards exporters are intensive regulations on all goods exported and the wide range of local sector knowledge expected by the Norwegian importers.
Your export sales team to Norwegian market should have a strong cultural knowledge and language skills, professional determination and readiness to develop your products – and your business dialogue – over longer period of the time. The modern and professional Norwegian export market opens itself gradually and one must work for every single step. But when you get there, it will be worth it.
You will always experience worldwide competition towards Norwegian high-priced export market – but after you have good Norwegian importing clients you will enjoy the Norwegian fair attitude, equality and friendship from the people who devotedly – and with very good reason – believe in themselves, in their country and in their business communities.
NORWEGIAN BUILDING SECTOR
The building sector is boosted not only by the growing cities and the common Norwegian wealth – but first by the large infrastructure projects ordered by the state. New roads, railways and large number of new, very large and expensive modern hospitals will secure the sector for years. The sector companies can also relay on government policy to issue quickly new projects to the market when needed with guaranteed income over long lasting project periods.
The overall market size in Norway is getting close to 500 billion NOK in a year for building and facilities combined. The facilities market which includes part of the all infrastructure newbuilds – boomed up to 110 billion NOK in 2019. Newbuild projects in railway and metro is on the top of the list here. The second booster in 2019 were the newbuilds in non-residential buildings with 8,7 % growth in 2019. When the residential newbuilds had their peak in 2017, then the medical non-residential buildings would lead to market growth towards 2030. All the large hospitals in Norway are built with official funds, generating purchases often around 10 billion NOK per facility. The prices in the building market have raised rapidly, not only during last 10, but also last 3 – 4 years. From the 2015 newbuild Kalsnes Hospital in Østfold – which was then the most expensive land-based building in the history – with price tag at 6 billion NOK the price level of the largest new hospitals today are almost doubled.
The residential building sector depends on the buyer`s market and on the regulations opening for new areas for residential buildings. In average, the price of the home is around 75.000 NOK / m2. The demand is expected to be higher than delivery due to the quickly growing urbanization numbers.
For the exporters to the market the most important matter is the green construction industrial thinking, which is the major goal in Norway. The companies in the market are devoted to environment-friendly materials, zero-emission construction sites and smart, energy-efficient buildings. In addition, there is a list of certificates and memberships the imported products must be part of in every project.
NORWEGIAN INDUSTRY SECTOR
In 2019 Norway purchased goods outside of Norway for 70 billion EUR with EU countries, China and USA as the leading trade partners. EU stands alone for ca 45 billion EUR. With the high price level Norway has established its industry in areas of higher competence, leaving the large part of the market demands to be fulfilled by international exporters.
When Norwegian building sector is dominated by the larger building companies, which again means higher competition for the access to the projects as fewer purchasers are involved, the industry sector is more various. The fact that just most of the production sector in Norwegian industry is connected to the Oil and Gas sector, is the very reason for the high price level in the sector.
Oil has historically boomed the production industry in better and worse: making the local industry dependent from oil sector and leaving it less diverse at the same time. Both factors however benefit the exporter: it gives good price level for selling to the local Norwegian producers and additional possibilities for selling own goods to the local end client.
The expectations of the language skills and business culture knowledge are still definitely there. The average Norwegian industrial company is a medium or small company characterized by strong local commitments, business relations and social habits. It is not unusual for a Norwegian industrial company to have the very same suppliers and clients for ten years. It takes a lot of professional readiness from the exporter to penetrate the market but simultaneously it gives as great reward when succeeding.
NORWEGIAN FOOD INDUSTRY SECTOR
Exported for 10 billion EUR in 2019 – excellent result for a country with high production price and imported for 6,5 billion EUR. The degree of self- sufficiency in Norway is only 40%, leaving the doors to the very high-end market open to importers all over the world. In addition to well-known import goods as exotic fruits, sugar and coffee, Norway imports large amounts of cheese, vegetables and meat products especially from EU countries. From 2000 to 2020 this sector import has tripled.
But Norway expands in variety:
During the last decade the production of Norwegian salmon has placed Norway internationally on the map as Norwegian`s fish farms are today all around the world. In Norway, 10% of the wealthiest 400 Norwegians are active in fish farming. This is a entirely new capital at work in totally international industry; industry which is not difficult at all to relocate overseas if the taxation is more suitable there. And we know often it is. Fish farming for the larger fish production companies and for the private investors has been extremely beneficial resulting in largest number of independent self-reliant millionaires in last decade, in addition also not geographically dependent on Norway.
Norwegian state supports Norwegian farmers with significant funds for competing with countries with a lot lower labor costs and a lot better weather. As other modern societies worldwide are also Norwegians highly motivated to eat local, cleanly produced agricultural products. Hundreds of Norwegian farm brands are competing in all level of sales channels. From better equipped retail stores to new hot restaurants at workplaces and office buildings. What you eat is now a part of who you are.
For exporters the gate into the market is the HORECA market, which is production label free for the end user, but one must be ready for learning and adapting the market and import requirements in close cooperation with the food industry official authorities.
NORWEGIAN ENERGY INDUSTRY SECTOR
Norwegian Oil and Gas exports contribute around 17% of the national GDP, creating sales worth 100 billion USD each year. As the oil resources had their peak in 2000 the gas resources, however, are just starting to get opened when it comes to the full potential.
In 2017 Norway became the second largest exporter of natural gas in the world, just after Russia. Norway supplies ca 25% of the EU gas demand. Together with oil, the gas industry stands for half of the Norway`s total exports. Which again illustrates the significance of the energy industry sector for the exporters to Norway. Every second-year world`s leading Energy Industry conference and trade fair ONS: Offshore Northern Sea`s is hosted by Norwegian town Stavanger keeping Norway in the headlines of the world news for the entire week. During that time, this little town with population of 130 000 welcomes almost 70.000 guests is transformed to the energy capital of the world.
Another as influential tool for the future of Norway has been the development of the hydropower industry. Norwegian hydropower generates close to 100% renewable electricity. It means that whatever happens in the world, the lights in Norway will stay on. Norway is viewed as one of the greenest countries in the world for years.
Norway`s renewable energy sector generates over a billion EUR revenues each year. In 2030, it is expected to rise eight times. This is an excellent sector for exporters who export solution based modern products aiming the innovational peak of the industry. Equinor, former Statoil, Norwegian state oil company will channel up to 20% of all its investments, around 12 billion EUR, into the renewable energy sector before 2030. There is no other nation in the world who so powerfully leads the entire country towards new way of life and business as Norway, giving the exporters an unpresented opportunity to deliver and grow with the leading innovational renewable marketplace worldwide.
NORWEGIAN MARITIME INDUSTRY SECTOR
Norwegian shipowners control 7% of the global fleet and related maritime industry companies. Norwegian ship equipment manufacturers have the leading competence in the sector worldwide. Norway as a wealthy maritime country has always been able to develop its maritime sector businesses into the highest quality and skill level. As an extremely international sector, the maritime sector is accessible for international exporters. One of the best marketplaces to be the worldwide well-known biennial maritime trade fair NOR SHIPPING, hosted by Oslo and attracting exhibiting participants from almost 900 countries and serving over 50.000 guests.
Norwegian shipping, which has always been family-based entrepreneurship, was the backbone of the Norway as a trading country long-long time before the oil industry. Today the business sector enjoys a reputation of top-quality service provider for business partners all around the world.
Being increasingly dependent on digitalization, integration and automation, sector looks new suppliers constantly, developing new market for a wide range of solution suppliers. Sector demands understanding of the maritime and logistical challenges in the seas – but time gives exiting possibilities either you are big or small company. Also – the marketplace “sea” is a lot more dimensional and less competitional, practical solutions win the attention.
As shipping cities, only Singapore and Hamburg are ranked higher than Oslo, when it comes to maritime technology. But only with the Norwegian sector the exporters can enjoy such a low-key communication tradition side-by-side with open business market information.