Traditional Czech export sectors
Major traditional sectors of Czech exports
The automotive sector
ranks among the key industries of the Czech economy; vehicles and components accounted for almost 19 percent of all Czech exports in 2010. There is no single major car manufacturer in Europe who does not utilise parts made in the Czech Republic. This success was achieved mainly as a result of the massive modernization of the automotive cluster after the Volkswagen entry into Skoda Auto plant in the early 1990s. The abundance of trained labour force and highly competitive sub-suppliers attracted two other major OEMs. The green-field plant of the TPCA consortium now manufactures models Toyota Aygo, Peugeot 107 and Citroën C1.More recently, Hyundai of Korea built its first European production facility in the north-east region of the country, providing yet another impetus to the development of the sector. Last but not least, the Czech Republic is a renowned supplier of buses, trams, and trolley-buses.
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The electrical engineering and electronics industry
has been shaped by along-standing tradition combined with profound restructuring and remains one of the most dynamic sectors of the Czech economy. For example, the green-field facility of the Taiwanese company Foxconn made the Czech Republic the leading manufacturer of computers in Central Europe, and so did Panasonic of Japan in the production of LCDs. At the same time, the electronics cluster features a rising number of suppliers of sophisticated specialized products, ranging from semiconductors to phone handsets.
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Chemicals and pharmaceuticals
The position of chemicals is exemplified by the importance of the petrochemical sector; the market leader Unipetrol became member of Central Europe’s largest refining and petrochemical group PKN ORLEN of Poland. Moreover, Czech manufacturers have sustained and upgraded the production of both industrial and consumer chemicals, such as paints and varnishes, detergents, cosmetics and pharmaceuticals.
Some major world pharmaceutical groups have successfully integrated their Czech acquisitions into their international networks and help them bring their products to foreign markets - Teva Group, Glenmark Pharmaceuticals or Sanofi-Aventis to name a few. Simultaneously, numerous indigenous businesses managed to build strong brands of nutritional supplements and pharmaceuticals while others engage in contract manufacturing for both domestic and foreign marketers. In alliance with universities and science institutes, the industry began to reap the fruits of productive investments into research and development as well.
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The Czech production of glass, pottery and ceramics
has a centuries-long tradition and enjoys high reputation around the world. The offer spans from decorative upmarket consumer goods to products for industrial use, for example sheet glassware used primarily in construction, technical glassware for the chemical industry and laminated and special glass for the automotive sector. It is of no surprise that most of the production recognized for its original design and excellent quality finds its customers abroad.
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The information and communication technologies
Without exaggerating, one can currently refer to the information and communication technologies (ICT) as the phenomenon of the 21st century. The dynamism of its development and scope of penetration manifest its irreplaceable role in the economy as well as society. The branch of information technology is continuously developing in the Czech Republic and maintaining its growth potential. The strong point of the CR is particularly the production of technologically sophisticated goods, such as computers, communication devices, semiconductors, connectors and other electronic products. In the area of information technologies the Czech Republic has also become one of the most popular localities for outsourcing and offshoring of services. Information and communication technologies, including both the software and hardware solutions, rank among the promising industries of the Czech economy.
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The building industry
has been experiencing an unprecedented boom since 2000, generating a significant multiplier effect on the whole economy. The growth was driven by both large infrastructure projects and housing construction. A number of international groups, such as Skanska, Strabag, Hochtief or OHL recognized the potential of local players, engineers and suppliers of building materials and entered the market through acquisitions. Production of building components and sub-deliveries, such as sanitary products, water supply-related projects and other specialised construction technologies are some of the most promising segments of the industry.
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The energy sector
has been striving to harmonise its norms with the EU standards and gradually decrease its dependence on solid fuels, brown and black coal. The high quality black coal is further processed into coke used in metallurgy and chemical industries. Thermal power plants which are the main source of electricity are located near the coal-beds. While a relatively high proportion of electricity is generated in nuclear power plants, emphasis has been shifting towards renewable resources like water and wind, solar or waste-related energy. Czech energy companies engaged in large investment projects abroad as well.
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Czech mechanical engineering
is characterised by a more than 150-year tradition of brand names such as TOS, MAS, ŠKODA, ŠMERAL, ZPS, ŽĎAS and others, which are known world-wide. The tradition of Czech engineering is emphasized by high quality and in many cases unique solutions. The share of the engineering sector in the overall amount of Czech exports has been recording high figures on a long-term basis. In the last twenty years Czech engineering has been developing very dynamically and currently it focuses on high-tech production, requiring a highly qualified workforce and a greater involvement of development and research. The engineering industry is represented by the production of a wide range of machinery and devices (such as turbines, transport and air-conditioning devices, as well as agricultural, food-processing and construction machinery and also machine tools and working machines) along with their components, ranking among the most important sectors of our manufacturing industry.
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The medical equipment
Production of medical equipment is one of the most substantial and innovative sectors of the Czech national economy. The rapid development of the Czech medical equipment industry started in the first half of the 20th century and soon this industrial branch began recording magnificent international achievements (Gold Medal for the cardiac defibrillator at the 1958 Brussels World`s Fair, Nobel Prize for the invention of the polarograph and the ground-breaking invention of hydrogel contact lenses). One of the most important current successes is the world-class production of hospital beds. The excellent results of the Czech medical sector together with the innovative potential of the domestic industry support the positive expectations for the future and open up new possibilities for Czech exports.
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