09:44
The 2008 crisis hit the PIIGS hard, to some extent, because China had managed to copy the PIIGS industry and sold the products cheaper and at okay (maybe not quite the same quality but close) quality?
I think I saw a figure from 2018-2019 that was over 14% over the past five years in market shares in Sweden’s high-tech industry that we have lost to Asia – It was not a shrinking market but that Sweden lost market shares to Asia.
-Has Asia moved on and started sniffing around our industry?
Then I also understand that the lower speed the industry runs at, the lower the electricity prices become but it seems that demand in the EU is almost endless and that lower consumption in Sweden only marginally affects prices?
We were promised significantly lower prices if we households reduced consumption by “a few percent” so we reduced by what, 18%, and nothing happened. My freezing children demand answers.
Hopefully it won’t come to this but in the worst case this high electricity price can make customers turn away from Swedish companies to buy the same product cheaper in Asia and that companies have no way to compensate – they are stuck with high wages, soaring electricity prices, increasing interest rates and have as their only way out to scale down or shut production to reduce costs.
09:49
I have noticed that the builders are eager for work, we have some work here with the house/houses and they are unpleasantly far behind after you have asked for a quote.
Service probably came from us citizens reducing consumption due to electricity prices and interest rates, the first hurdle is passed?
Do you reasonably think it is possible to move manufacturing to SE2-1?
I think such a capital cost becomes impossible to handle for manufacturing companies as it looks today?
It must almost be easier to build lower electricity prices in SE3-4 through a national program than to move manufacturing north?
09:35
I think you read more articles about layoffs, they must reasonably be on the rise?
Then I have read several articles about electricity-intensive industry shutting down at these electricity prices.
Of course, everything is anecdotal but two years ago you didn’t read that.
We have had a competitive advantage beyond being awesome Swedes and that is that we have been able to manufacture electricity-intensive products and high technology at competitive prices within Sweden in a high-wage environment because electricity prices have been so low.
That rug was pulled away a few years ago and prices have gone up what, 600%-1000%?
Not all industry is located in Norrland yet and even there prices have gone up.
Good luck with wage dumping to achieve profitability, I think that is almost impossible.
A lower krona takes care of that has been written a few times but we are probably not the only ones dumping currencies 🙂