The economy and business environment of Fejér county
Hungary is located in Central Europe, in the Carpathian Basin. The country has seven regions, one of which is the Central Transdanubian region occupying 11 117 km2 in the central part of Transdanubia.
The region is made up of three counties located in Hungary's historic center: Fejér, Komárom-Esztergom and Veszprém counties. Important railways, roads and highways cross and navigable river segments define the area. 11 percent of the country's population live in the Central Transdanubian region, meaning more than 1.1 million people, of which 426 thousand live in Fejér county.
Prominent role of Fejér county
Among the three counties forming the region, leading role is played by Fejér county, which produces 40 percent of regional GDP. From the viewpoint of size and population, the county is ranked in the middle of the country scoreboard, but due to its location on the line connecting western areas and on Budapest-Székesfehérvár-Balaton axis it plays economically important role. Industrial activity is decisive in the economic structure of the county.
The geographic location of Fejér county is favorable. Its area is one of new development zones in Central Europe, one of the innovative power centers. As a result, European development zones and trends can influence the development of the county. In this regard, two major lines of power shall be mentioned: Vienna-Bratislava-Gyor-Budapest development axis connected to the southern Bavarian Innovation Area, and Trieste-Zagreb-Nagykanizsa line connected with Mediterranean area, which also has connection to Budapest through Kiev-Trieste corridor. Budapest, as a pole of international growth, connects to these two Central European development zones through the area of the region, where due to its location and economic potential Fejér county is as well of outstanding importance.
The possibility of development of economic, geographic region is greatly influenced by the closeness to the international routes, which inter alia means the existence of adequate transport facilities. fejér county is crossed by important railways (450 km), roads and highways (1509 km), and navigable river segments define the area. Fejér county has extraordinary aptitudes, since almost all of Helsinki corridors pass through the region and the county. Currently, road freight forwarding and transport are the most dominant in Europe, therefore the existence of motorways, the proximity of and access to these motorways are highly important. Administrative areas of Fejér County are located close to several motorways and motorway hubs, and this can be interpreted as a competitive advantage.
In 2013, according to the CSO survey on labour force in Fejér county's population, 59% of population aged 15-74 making 191 thousand people belonged to the economically active population. The average number of employees was 170.3 thousand, which is 2,200 more than in March of the previous year. The county unemployment rate was 11%, the employment rate was 52.4%. Both the unemployment rate and the employment rate are more favorable than the national average. Half of registered jobseekers are women, 12% are entrants and 16% are under 25 years of age. The number of registered entrants increased 1.3-fold from the previous year. At the end of March, all the while there were 3403 declared vacant posts in the county, which is 2.2 times higher than a year ago.
According to the data of institutional labour statistics, in Hungary, enterprises employing at least 5 people, budgetary and social security institutions and observed non-profit organizations, regardless of the number of employees, employed 2 million 600 thousand people in the first quarter of 2013 which is 1.1% lower than a year ago. The number of employees has grown just in five counties (Fejér, Győr-Moson-Sopron, Jász-Nagykun-Szolnok, Nógrád, Tolna) , in Fejér county the growth was by 0.6%, to 109 thousand people. More than three-quarters (83 thousand persons) of the number of employees in the county is employed in the private sector, their number has increased by 0.3% from a year earlier. The staff of budgetary institutions (24 thousand) increased by 2.7%.
Counting by jobs, the number of intellectual workers in the public sector has increased the most, the biggest drop was in the number of white-collar staff of enterprises. In terms of individual branches of the national economy, the two largest employers are manufacturing industry and trade, where the number of employees is 37% and 18%, respectively. In both areas the headcount growth was below 1%. Among other major economic branches, the number of employees has increased in the public administration, health care and administrative services sector and decreased in agriculture, construction and education.
In terms of the proportion of employees, the manufacturing industry share of 36% is to be highlighted, while the share of trade is 18%, and the shares of education and health are each 8%. The purchasing power in Fejér county is in close interdependence with the dominant role of trade, ranked in an outstanding third place at the national level.
In 2012, annual average gross earnings of full-time employees are HUF 213 000 (equivalent: EUR 736) in the county, however there is a significant spread between the earnings. While monthly gross earnings at enterprises are HUF 222 000 (i.e. EUR 767) in average, employees of budgetary organizations earn only HUF 185 000 (i.e. EUR 639) in average. Average gross earnings of white-collar resources make HUF 290 000 (EUR 1002), for blue-collar workers this figure is HUF 167 000 (i.e. EUR 577) in gross wages.
Key driving sectors in Fejér county
Key feature of the economic structure of Fejér county is that in terms of industrial production it is in one of the leading positions in Hungary. Multinational companies have settled in the region, the number of small and medium enterprises continues to grow, the investment environment is improving, not least because of relatively low-cost, skilled, workforce well adaptable to changes. 76% of industrial products are sold on export markets, while 24% are sold domestically.
Containing presentations of some 80 businesses in the county, this publication gives an overview of the county's economy and industry sepcifics.
Videoton Holding Ltd. and Magyarmet Finomöntöde Ltd are dominant players in terms of volumes and contribution to the economic performance of the county in the area of manufacturing of basic metals and fabricated metal products. It is characteristic for industrial players that they continuously expand and develop their activities, the related technology and product scope. It can be said about these companies, that they carry out complex service and manufacturing activities in various sectors in addition to basic metal manufacturing, such as electronics and mechanical engineering.
Companies operating in the county in the area of precision casting are suppliers of internationally acclaimed ready-for-installation components, which are used in various sectors of the manufacturing industry. One of leading companies in this area is MAGYARMET Ltd located in Bicske. More than 86% of manufactured parts are exported.
The Hungarian electronics industry, which had a long history before the regime change, is the fastest growing industry of the last period, in the international division of labour this is the most “embedded” segment, in terms of production volumes it also offers one of the highest performance from year to year. According to the data of the Central Statistical Office, the direct contribution of the electronics manufacturing industry is one of the most important factors in domestic GDP production. Innovations in electronics area, electro-mechanical assembly and cable assembly are included among electronics industry's activities providing outstanding achievements. Representatives of the Fejér county’s trade sector are Macher Mechanical and Electronics Ltd, Videoton Holding Ltd., which companies produce industrial sensors and quality products for special vehicles manufacturers, enterprises engaged in medical technologies, defense, aerospace and printing industry players.
Almost every segment of the economy - automotive and construction, electronics industries, medicine - are increasingly relying on the results of the plastics industry. An important factor in the success of these areas is the development of the plastic industry and the improvement of its efficiency. County businesses operating in this sector play an important role in international markets as wel, including Karsai Holding Ltd, SIMON Plastic Pprocessing and Metal Mass Product Manufacturer.
In the majority of the Hungarian regions the mechanical engineering represents an economic key driving sector and the significant part of produced product is exported. Activities of mechanical engineering enterprises were significantly influenced by foreign investments, this sector concentrates an outstanding amount of foreign capital. Foreign investors gave preference to the regions with former traditions of mechanical engineering or the regions offering other market benefits. Consequently, their manufacturing potential mainly focused in the central and western parts of Hungary and so their their presence is dominant in Fejér county as well.The companies are characterized by specialization. Custom parts, tools and equipment can be manufactured even in bespoke, small series.Mechanical engineering companies economically stable in the long term and pursuing continuous improvement, like Cantor Mechanics Ltd., ÉGT Ltd, Car-Center Ltd are markedly present in the county.
Supplier's activities are outstanding in Fejér county, it is characteristic for county enterprises that their automotive supplier activity is linking to automotive industry concentrated in the Central Transdanubian and the wider region, also their role is significant in this area in EU and third country markets. In the county, a number of multinational and Hungarian-owned companies can be found in the automotive supplier market. Among companies mentioned above, Karsai Plastics Holding Ltd with its eight associated companies are capable of serving leading car manufacturers and electronics industry in the domestic and international markets. Enterprises of Macher Mechanical and Electronics Ltd and Videoton Holding Ltd. with their professional experience and assurance of Western European production quality, beside the automotive industry, with their products can cost-effectively supply the defense industry, the aerospace and clean energy industry.
In aerospace industry, several enterprises have Aerospace and Outer Space quality certification, such as Macher Electronics Ltd, Magyarmet Finomöntöde Ltd.
The use of renewable energy sources use, production of related products and provision of services are attributed a growing emphasis in Fejér County. Due to the spreading of renewable energy sources, many major production facilities and commercial units started to operate in recent years.Jüllich Glas Holding Ltd, using high-tech solutions in its products and manufacturing technologies, appears both as manufacturer and merchant Its product range includes solar collector products: flat and evacuated tube collectors. Spring Solar Ltd is present with its products, while scIQuest Ltd is connected with the renewable energy market through its research activity. In addition to the energy industry specialties, the companies provide energy consulting.
The base of highly skilled technical professionals with innovation potential and interacting capability is characteristic for computing, information technology and software sector. Major companies in the computing and IT area, that are responsive to the challenges and innovative, are Albacomp RI Ltd., Seacon Europe Ltd., Unicomp Informatics Ltd. and Cad-Cam Solutions Ltd.
Due to favorable agricultural endowments, the food industry in Fejér county is capable of producing significant amounts of high quality products. While in the past large companies were dominating the market, nowadays the expansion of small businesses is also characteristic. The Hungarian-owned family business, Furi Pasta Ltd supplies traditional Hungarian dried pasta to the international market, serving the nutritional needs of different consumer groups. Its products include several-egg pastas, so-called durum pasta varieties and reform food products. Honey Hungary Ltd. manufactures premium quality assorted Hungarian honey in exclusive packaging. Irbex Ltd has been exporting high quality poultry and game to international markets since decades.
Furniture industry: Like many other industrial sectors, the furniture industry and wood processing were as well setback by the 2008 economic crisis.Furniture industry players being present in the region are more and more focusing on high quality needs of customers and the use of innovative materials. Design activities are already aligned with the latest trends. Among furniture companies in the county, Garzon Bútor Ltd, MOTE Ltd, Karrier Bútor Ltd and Alba-Bútor Súdió Ltd. Both are prominent players in the domestic and international markets of self-produced furniture products - finished furniture, fittings and components. It is characteristics for furniture industry enterprises that under influence of the economic conditions many of them seek expansion of their export markets, undertaking the implementation of complex projects, in collaboration with partner companies for construction and interior design.
Construction industry: Construction companies play important role in the county with their innovative products and solutions supporting environmental sustainability. Company group Masterplast has extensive and constantly expanding international manufacturing base and subsidiaries. The operation of Fehér company group is significant not only at the county level, but at the countrywide level. They manufacture proprietary products and undertake complete construction execution. In the county SME sector Eudeal Plusz Ltd is decisive as a general contractor, while in the area of research and development activities Nagy és Társa Ltd is a key player. Both companies are open to using technologies and solutions based on renewable energy.
The role of the service sector is getting increasingly stronger in the Hungarian economy, its expansion is a consequence of economic development; outstanding amount of investments in goods forwarding and other service sectors has taken place over the last few decades. From the viewpoint of development of the Hungarian economy and, within this, of the service sector, activities carried out by multi-national companies, continually growing Hungarian SMEs and large enterprises in the area of manufacturing industry, machinery, automotive, electronics manufacturing and trading, are of outstanding importance. Fejér county economic performance stands high at the national level, mainly due to the advanced manufacturing industry, resulting in a higher income level.
In the area of freight forwarding and logistics, the activity of Alba-Zöchling Ltd and Truck JNB Ltd is significant for the region.
In the area of tourism and catering, in recent years Károlyi Castle in Fehérvárcsurgó, Fogadó az Öreg Préshez Ltd in Mór, Csutora Restaurant in Agard , Diófa Restaurant and Kiskakas Restaurant (Lucullus 3 Ltd.) in Székesfehérvár are getting increasingly popular.
In the area of adult education, training, translation, interpreting, the Fejér county companies are prepared to co-operate, some of them have many references in the implementation and application of EU projects. The representatives of the sector are Prisma Tanoda Ltd., Bildung Ltd., Tréning Stúdió, Sasvár Ltd. and M-Prospect Ltd.
We recommend to the attention of companies seeking cooperation, the businesses in the dominant sector of Fejér county, which are introduced in this publication in alphabetical order.