Czech Trade Focus News from the Czech Commercial Offices in the United States / Fall 2015
Macroeconomic Data of the Czech Republic Czech Aircrafts at EAA AirVenture Oshkosh 2015 Economic Briefs Investment Briefs Which Country is the Most Industrialized in Europe? Yours Truly... Companies and Businesses Czech Companies Looking for US Partners Tradeshows and Exhibitions Czech Commercial Offices in the United States Business and Trade Websites
MACROECONOMIC DATA OF THE CZECH REPUBLIC
INDICATORS GDP (%, y-to-y) Inflation (%, y-to-y) Unemployment (%, y-to-y) Industrial Production (%, y-to-y) Exchange Rate CZK/USD (average)
2013 -0.9 1.4 7.0 1.5 19.6
2014 2.0 0.4 7.7 4.9 20.8
Latest available data Q2 ´15 4.4 August '15 0.4 August '15 6.2 July '15 4.6 August '15 23.6 Source: Czech Statistical Office
CZECH AIRCRAFTS AT EAA AIRVENTURE OSHKOSH 2015 The EAA AirVenture Oshkosh 2015 was held from July 20, 2015 – July 26, 2015 in Oshkosh, WI. More than 500,000 visitors from over 60 countries attended the event featuring over 10,000 aircrafts. A great number of Czech companies, exhibiting mainly in the category of Light Sport Aircrafts (LSA), showed the importance of the Czech aircraft industry both on the European and world scale. Especially in the LSA category, the event usually brings a large number of business opportunities to Czech companies; therefore, there were an abundant number of Czech companies exhibiting. The Consul General of the Czech Republic in Chicago, Bořek Lizec, visited eight exhibits of Czech companies. These companies were either represented by Czech managers or their American distributors. Aero Vodochody presented their latest L-39 aircraft engine, distributed by Williams International from Michigan. Czech Sport Aircraft exhibited the SportCruiser aircraft, distributed by US Sport Aircraft. Czech representatives of PBS Velká Bites that produces engines used for aircrafts as well as helicopters brought an experimental example of an LSA with their product. PBS also presented at the DIEMECH – Turbine solution and Scion stands. TL- Ultralight highlighted their aircrafts called Sting and Sirius. ZlinAviation showcased the Savage. The distributor for both of the companies is SportairUSA, LC. Attendees to the event could also view propellers produced by Avia Propeller in the MT-Propeller booth. Bristell Aircraft featured aircrafts made by Bristell. More information about the Czech aviation industry can be found on the website of the Light Aircraft Association of the Czech Republic: www.laacr.cz.
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ECONOMIC BRIEFS The Czech Republic has welcomed 3.9 million tourists in the first half-year. Annually this number has grown by 8% and is on its way to an all-time record. This growth has been influenced specifically by the weak Czech crown, sporting events that have been organized this year and also the fact that the Czech Republic has been ranked among the 10 safest tourist destinations according to the Global Peace Index. The average salary has grown in the first quarter to CZK 25,306 (USD 1,047). Thanks to low inflation, income has grown by 2.1%. The biggest growth has been recorded in the accommodation sector (4.4%). By contrast, the average salary fell a little, especially in the financial sector. Month-to-month unemployment rate in the Czech Republic has fallen by 0.2%. There are 451,395 people without employment, which is the lowest number since April 2009. Sales of Czech online stores have grown by 20% in the second quarter of 2015. It was also for the first time that orders received from cellphones have trumped orders
from tablets. The third quarter should see a similar trend. It is estimated that sales will grow by another 20%. Czech Republic is a leader in the number of internet shops per capita. With approximately 37,000 online stores, it has the same amount as the United Kingdom with a much larger population. Foreign trade of the Czech Republic resulted in the surplus of CZK 17.3 billion (USD 716 million) in May this year. Same as April, the year-to-year surplus has grown by CZK 4.7 billion (USD 194 million). The trade balance has since January reached a surplus of CZK 95 billion (USD 3.9 billion) which results in a year-toyear growth of CZK 11.2 billion (USD 463 million). Foreign trade of the Czech Republic is on its way to the most successful annual result in the Czech Republic’s history. The Czech economy has grown in the second quarter of 2015 by 4.4% and in the scope of the EU is the most successful regarding its GDP growth (the EU average is 1.6%). Among the main initiators of this growth are the manufacturing industry, investment sector and household consumption. Thanks
to an increased income, there are more purchases by households that had been postponed during recessions (vehicles, household equipment and vacations). The dependence of the Czech economy on exports to EU countries is growing slowly, with 83% of domestic exports heading for the EU this year, compared to 81% in 2012 and 2013. The state, however, supports the opposite trend. The country´s export strategy for 2012-2020 has identified 12 priority countries for exports, all of them outside the EU. More than one in five Czechs retires prematurely and 498,500 received a lower early pension in March, according to the latest data of the Czech Social Security Administration. The law on premature pension took effect in 1994. The average monthly pension is CZK 11,300 (USD 467) while the average premature monthly pension is CZK 10,100 (USD 418). The Czech retirement age is 63 years for men and 62 years for childless women, while mothers may retire sooner, based on the number of children they raised. People may retire up to three years earlier if they want.
INVESTMENT BRIEFS Konica Minolta is in the process of buying the Czech software company Webcom, supported by investors Michal Zahradnicek and Ivo Kristen. The cost should be around CZK 500 million (USD 20.7 million). Webcom´s last year sales were CZK 345 million (USD 14.3 million) and the ebit was CZK 50 million (USD 2.1 million....).
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Amazon will establish a new warehouse for returned merchandise in Prague. According to sources, the warehouse should be built in the park of Horni Pocernice. By the second quarter of 2016, approximately 3,000 people could find employment there. The Czech Republic is rated 25th in the world in terms of investment attractiveness for foreign firms this year, moving up five places from last
year thanks to improved economic conditions, according to the ranking compiled annually by the international consulting network BDO. The international Business Compass is a study that assesses the investment potential of 174 countries based on 20 economic, political and social indicators. In Europe, the Czech Republic occupies the 14th position, the best rating among Central and Eastern European countries.
The figures for the total spending of Chinese tourists in the Czech Republic are growing fast, as they recorded a rise of 119% in the first half of this year and surpassed Russian tourists´ expenses in June, according to the Global Blue Company. The spending of Russian tourists fell by 42% in the first half of the year. A further increase in Chinese tourists´ spending is expected with the launch
of Beijing-Prague direct flights in the autumn served by Hainan Airlines. Google remains the most wanted employer in the Czech Republic, winning the title for the fourth time in a row in spite of the fact that it hires just a few university graduates every year. Other employers popular with students include KPMG, Skoda Auto, Nestle, CEZ, Deloitte, Microsoft and
Komercni banka. Continuing education, flexible working hours and meal vouchers are the most wanted perks.
WHICH COUNTRY IS THE MOST INDUSTRIALIZED IN EUROPE? YOURS TRULY... The Czech Republic keeps receiving an influx of both foreign and domestic manufacturing investments. Thanks to that, its GDP share of manufacturing is the highest in Europe. In fact, 47.3% of private business activity is created by manufacturing. This long-held tradition of significant share of industry on the economy started more than 150 years ago. It withstood even the post-socialist overhaul of the national economy in the 1990s and 2000s. As more than half of its production goes to export, the Czech Republic needs to keep an eye on how the major world economies are doing. Sooner or later, problems abroad hit back home. Conversely, when economies like Germany do just fine and experience growth, Czech producers will see a wave of new inputs in their order books. Automotive production represents the biggest share of the manufacturing activities and creates the biggest number of jobs among domestic industries. Foreign-born producers such as Volkswagen of Germany or Hyundai of South Korea have taken advantage of well-developed supply chains and have kept increasing the share of their Czech suppliers. Also the Czechowned truck producer Tatra is doing well and has seen the largest number of export orders in years. The Czech Republic is a land-locked country with little natural resources available. Apart from manufacturing, it must build its economic future on high value-added industries such as IT or health care. The positive news is that these industries’ GDP shares are growing and more Czech IT or health-related companies have recently decided to enter the U.S. Market.
COMPANIES AND BUSINESSES SmartWings airlines, which belong to the Travel Service air transport company, will commence its regular direct flights to Cuba in December this year. SmartWings has its base at the Prague Airport. During the year, SmartWings offers flights to many destinations and resorts departing from Prague, Brno and Ostrava. Traction engines that have been developed at Skoda Electric in
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Pilsen will be used in approximately 200 trolleybuses in Seattle and San Francisco. The first of these buses has already started its test drive. Passengers will be able to start using them towards the end of the summer. The Czech company Uranium Industry has obtained a license for uranium mining in Mongolia, which is an achievement as the international competition is tough.
The company will start to get the uranium deposit (valued at 500 million USD) ready in the spring of next year. Kofola Group’s income in the first half of the year reached CZK 3.4 billion (USD 141 million), topping last year’s figure by 11.1 percent. The gross margin increased by 25.2 percent and EBITDA raised by 46.4 percent.
CZECH COMPANIES LOOKING FOR US PARTNERS HONKYS The company is a manufacturer of CNC thermal cutting machines for metal cutting by plasma, oxy-fuel and laser. It is looking for dealers in the US. Contact: Vladimir Honkys Address: Kaprova 42/14, 110 00 Prague Telephone: +420 561 034 570, Mobile: +420 727 820 700, Fax: +420 561 035 885 E-mail: [email protected]
TRADESHOWS AND EXHIBITIONS IN THE CZECH REPUBLIC INCHEBA PRAHA spol. s r.o. is one of the most important companies organizing exhibitions and fairs in the Czech Republic. Every year, Incheba Praha organizes about thirty exhibitions and fairs, all of them taking place at the Holesovice Fairground in Prague. For more information and a list of current exhibitions and fairs, please visit www.incheba.cz. BVV Trade Fairs Brno is one of the most prominent trade fair organizers in Central and Eastern European countries. Its core business activity is organizing trade fairs and exhibitions at the Brno exhibition center and providing exhibition services. For more information and a list of current exhibitions and fairs, please visit www.bvv.cz/en/. October 1-4, 2015 Autoshow Praha This event showcases automobile products Venue: Prague Exhibition Grounds Organizer: Incheba Praha Phone: +420 220 103 111 Web: www.incheba.cz October 8-10, 2015 Pragodent The biggest stomatology exhibition in the Czech Republic Venue: Prague Exhibition Grounds Organizer: Incheba Praha Phone: +420 220 103 111 Web: www.incheba.cz October 14-15, 2015 Cepa Expo An event showcasing aviation industry Venue: Prague Castle Organizer: Central European Private Aviation Phone: +420 775 757 653 Email: [email protected]
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October 16-17, 2015 Interbeauty Prague An event showcasing cosmetics and beauty products Venue: Prague Exhibition Grounds Holesovice Organizer: Incheba Praha Phone: +420 220 103 111 Web: www.incheba.cz October 21-24, 2015 Medical Fair Brno The third largest fair on the European continent Venue: Brno Exhibition Centre Organizer: Brno Trade Fairs and Exhibition Phone: +420 541 151 111 Fax: +420 541 153 070 Email: [email protected]
Web: www.bvv.cz/en October 22, 2015 International Wine Show Prague An event showcasing products from the wine industry Venue: Hilton Prague Hotel Organizer: KapWein Bohemia Phone: +420 737 059 277
Email: [email protected]
Web: www.kapwein.cz November 12-14, 2015 International Gastronomic Festival An event displaying Czech and international cuisines Venue: Exhibition Grounds Ceske Budejovice Organizer: Exhibition Grounds Ceske Budejovice Phone: +420 387 714 911 Fax: +420 387 714 263 Email: [email protected]
Web: www.vcb.cz November 20-21, 2015 Prague Wedding Expo An event showcasing wedding gowns, bridal wear and wedding cakes Venue: Hotel International Prague Organizer: Prague Weddings Phone: +420 777 218 480 Email: [email protected]
CZECH COMMERCIAL OFFICES IN THE UNITED STATES Embassy of the Czech Republic in Washington, DC 3900 Spring of Freedom St., NW, Washington, DC 20008 Consular jurisdiction: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia. Phone: 202.274.9104, Fax: 202.244.2147 Contact: Mr. Tomas Hart Assistant: Ms. Lenka Martinakova Email: [email protected]
Czech Tourism California 6 Hutton Centre Drive, South Coast Metro, CA 92707 Phone: 714.382.6855 Contact: Mr. Vojtech Kacerovsky E-mail: [email protected]
CzechTrade The Czech Trade Promotion Agency CzechTrade was established by the Ministry of Industry and Trade of the Czech Republic in May 1997. CzechTrade´s main objective is to promote international trade and cooperation between Czech and foreign companies. CzechTrade´s professional information, assistance and consulting services accompany Czech exporters to foreign markets. The agency is a contact partner for firms entering the Czech market, seeking interesting and reliable business partners and suppliers.
Consulate General in Chicago 205 N Michigan Ave, Suite 1680, Chicago, IL 60601 Consular jurisdiction: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, South Dakota a Wisconsin. Phone: 312.861.1037, Fax: 312.861.1944 Contact: Mr. Borek Lizec Email: [email protected]
202 S. Wacker Dr., Suite 3210, Chicago, IL 60606 Phone: 312.612.5894, Fax: 312.612.5897 Contact: Mr. Jan Kubata Email: [email protected]
Consulate General in Los Angeles 10990 Wilshire Boulevard, Los Angeles, CA 90024 Consular jurisdiction: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming. Phone: 310.473.0889 x.229, Fax: 310.473.9813 Contact: Mr. Michal Sedlacek Email: [email protected]
CzechInvest CzechInvest was established in 1992 by the Ministry of Industry and Trade and is the investment and business development agency of the Czech Republic whose services and development programs contribute to attracting foreign investment and to developing Czech companies. CzechInvest provides the following services free-of-charge: Comprehensive services for investors - full information assistance, handling of investment incentives, business property identification, location of Czech suppliers, aftercare services; Business infrastructure development; Access to structural funds.
Consulate General in New York 321 East 73rd Street, New York, NY 10021 Consular jurisdiction: Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont. Phone: 646.422.3303, Fax: 646.422.3311 Contact: Mr. Martin Dvorak Email: [email protected]
USA - West Coast Operations Office 275 Battery Street, Suite 2600, San Francisco, CA 94111 Phone: 408.524.1690 Contact: Mr. Roman Horacek Email: [email protected]
Czech Center New York 321 East 73rd Street, New York, NY 10021 Phone: 646.422.3399, Fax: 646 422-3383 Contact: Ms. Barbara Karpetova Email: [email protected]
USA - East Coast Operations Office 321 East 73rd Street, New York, NY 10021 Phone: 347.216.9355 Contact: Mr. Jan Fried Email: [email protected]
Czech Tourism New York 1109 Madison Avenue, NY, NY 10028 Phone: 212.288.0830, Fax: 212.288.0971 Contact: Ms. Michaela Claudino Email: [email protected]
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BUSINESS AND TRADE WEBSITES General information about the Czech Republic Trade promotion agency CzechTrade Investment and business development agency CzechInvest Tradeshows Czech Embassy in Washington Ministry of Foreign Relations of the Czech Republic Ministry of Industry and Trade of The Czech Republic
www.czech.cz www.czechtradeoffices.com www.czechinvest.org www.veletrhyavystavy.cz www.mzv.cz/washington www.mzv.cz www.mpo.cz
DISTRIBUTION INFORMATION The Czech Trade Focus is distributed by the Commercial Office of the Czech Embassy in Washington, DC. Sources: CTK, The Prague Post, CIA News, Financni Noviny, CzechInvest, CzechTrade, Czech Statistical Office If you would like to receive the Czech Trade Focus © by e-mail, please submit your request to: [email protected]
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