Ungated Post | 11 Jul 2019

The impact of the European steel industry on the EU economy

Oxford Economics’ analysis demonstrates the importance of the EU steel industry, which supports an extensive supply chain across the continent, and facilitates highly-valued work in key customer sectors – including metal product, machinery and motor vehicle manufacturing, as well as construction.

This study updated previous work for Eurofer, and showed that, in 2017, the EU steel industry’s own (‘direct’) contribution to EU-wide GVA was €25 billion, associated with some 328,000 workers and €10 billion in tax revenues.Taking into account ‘indirect’ (supply chain) and ‘induced’ (wage-funded expenditure) effects too, the industry’s total contribution to EU GVA in that year was £148 billion – more than the GVA of the Berlin region – supporting 2.6 million jobs and €60 billion of tax.

This year’s analysis also looked at the economic impact of four key customer sectors, namely manufacture of metal products, mechanical machinery, and motor vehicles, plus construction. Excluding impacts on and via each other, and on and via the steel sector, the total combined impact of these sectors, through their direct, indirect and induced channels, was found to be €3.4 trillion in terms of EU-wide GVA, supporting 62 million jobs and €1.35 trillion of tax revenues. The share of these impacts arguably ‘enabled by’ the use of EU-produced steel, taking into account the share of those inputs in a wider ‘steel and alternative inputs’ grouping, was put at close to a third.

Click here to download the full report now

Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques.

Lead consultants on this project were:

Oxford Economics’ team is expert at applying advanced economic tools that provide valuable insights into today’s most pressing business, financial,and policy issues.

To find out more about our capabilities, contact:

EMEA
Pete Collings
+44 (0)203 910 8078
Email

Americas
Hamilton Galloway
+1 (646) 503 3068
Email

Asia
Christie Tang
+852 3974 8841
Email

Related Services

Post

Generating ROI with AI: Six capabilities that drive world-class results

Generative AI has taken the business world by storm, with large language models (LLMs)—including OpenAI’s ChatGPT—splashed across the news. And executives aren’t immune to the hype. AI is becoming an ever-larger component of IT budgets, with worldwide spending on AI-centric systems expected to hit $154 billion this year—up 27% over 2022. But will enterprises spend these resources wisely? Our research says yes—if organizations take a disciplined approach.

Find Out More

Post

Deep Green

A global research study that details the current state of play on environmental sustainability actions and how data, technology and collaboration will drive the next phase of sustainability in business.

Find Out More

Post

Leveraging Technology to Promote Financial Inclusion

Oxford Economics and Red Hat surveyed executives at financial institutions internationally to discover how they are using technology to expand financial inclusion while gaining business benefits.

Find Out More