Large Finnish companies are confident of success in the period overshadowed by the coronavirus. On average, executives expect demand in their main business area to grow by more than five per cent in international markets, and around three per cent in Finnish markets. About 70 per cent of respondents believe that the winner-takes-all and market concentration effects will intensify. A clear majority of companies regard market concentration as an opportunity.
Rapid growth is now being sought in intangible investments, based on a bold focus on product and service development, digitalisation and sales activities. Almost half of respondents stated that their intangible investments were aimed purely at growth. Large companies intend to invest in digitalisation in particular.
The outlook for growth in tangible investments is also more positive than last year. IT and information security systems will attract a higher share of investments; investments in these are expected to rise by eight per cent.
“Growing investments reflect the renewed faith of large companies in long-term demand. There has also been a major change in the logic underlying growth: where tangible investments were once aimed at creating new business, they are now focused on continuity. In the new era, intangible investments are viewed as the source of rapid returns,” explains Katja Keitaanniemi, President and CEO of OP Corporate Bank.
The survey results suggest that Finland is fairly attractive for large companies seeking to invest. Its reliable energy supply, predictable taxation system and well-functioning capital markets are assets in this respect. On the other hand, investors’ ardour is dampened by prolonged growth in public borrowing, the actions of employee organisations, and legal processes such as the handling of appeals.
“We must listen to large corporations, to ensure that they invest in Finland as well as abroad. The transition to the new, post-pandemic normal is likely to make large companies even more important to Finland’s economic growth and employment,” says Katja Keitaanniemi.