Press release, 21.02.2025.
Value chain length and spatial concentration in transport equipment manufacturing
New publication in the HCSO-METU experimental statistics series
The Hungarian Central Statistical Office (HCSO) and the Budapest Metropolitan University (METU) continue their joint experimental statistics series. After the analysis of industry and construction, taking into account value chains and spatial concentration, the new experimental statistics will focus on the transport equipment industry, a key sector of the Hungarian economy.
The currently published third issue of the experimental statistics, produced in professional cooperation between the Hungarian Central Statistical Office and the Budapest Metropolitan University, focuses on the Hungarian transport equipment industry. The analysis will be useful for those who are interested in the deeper context of economic processes, as its innovative approach provides a more nuanced picture of the sector's functioning, its spatial characteristics and the relationship between the different segments of the transport equipment industry through the analysis of the value chain.
The analysis reveals that the transport equipment industry is a key sector of the Hungarian economy, the most important sub-sector of manufacturing, accounting for more than a quarter of the manufacturing industry's output value and almost a fifth of its gross value added in 2023. Its output grew 4.3 times between 2000 and 2023, compared with a 27% volume increase in the European Union and a 36% increase in Germany, the most important player in the sector. Hungarian transport equipment production is predominantly export-oriented, with 91 percent of the sector group's sales going abroad in 2023.
The regional concentration of the transport equipment industry is significant (although lower than the national economy average), with large car manufacturers, which are considered the dominant players, operating in a specific geographical area. This territorial concentration has changed somewhat over the last 25 years with the entry of new players, but has always been present.
The value chain length, measured as the ratio of gross value added to output, is the smallest among manufacturing sectors in the case of transport equipment manufacturing, due to the high reliance on products and components originating in imports or produced in other sectors. The experimental statistics also take into account the input and output table (IOT) for the analysis of value chains, which can show not only direct uses but also cumulative uses (the sum of direct and spill-over effects due to cumulated indirect effects). On this basis, the analysis quantifies the total domestic output generated by the production of 1 HUF of value added and the imports needed to produce 1 HUF of output.
At the beginning of 2024, the HCSO launched a new online platform to publish its experimental statistics based on the latest innovative methodologies, alternative data sources and the unprecedented linking of existing data. Experimental statistics allow to meet emerging data needs, to cover currently perceived knowledge gaps and can provide effective support for a deeper understanding of social and economic processes.
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