1. Deputy Mayor, competence and business development
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Mr. Tero Hirvilammi,
City of Turku
Deputy Mayor, competence and business development

2. MARITIME CLUSTER ENTITY
The marine industry, shipping and port operations form the core of the maritime cluster

3. Economical Significance of the Maritime Cluster in Southwest Finland
The combined turnover of the maritime cluster companies (n = 367) is 7.3 billion euros, of which the share of sites in south-western Finland 4.0 billion euros.
The turnover of maritime sector (any company activities related to navigation, maritime industries and port operations) totals 2.4 billion euros in south-western Finland.
The expected increase in turnover in 2006 (median)
marine industry 10 %
maritime industries 5 %
port operations 5 %
Both direct and multiplier effects on the economy of the whole area are significant.

4. Effects of the Maritime Cluster on Employment in Southwest Finland
The maritime cluster companies (n = 371) provide work for 31,800 persons, of which 17,300 in south-western Finland.
The maritime sector provides work for 11,000 persons in south-western Finland.
The public sector involved in the maritime cluster employs approximately 1,000 persons.
The indirect employment impacts are significant and extend to numerous fields of business located throughout the region.
When the number of direct and indirect jobs supported by the maritime cluster are combined, the total for Varsinais-Suomi and Satakunta is at least 27,000 people, or approximately 8.5 % of the employed population in the region.

5. Operational Links between the Companies in the Maritime Cluster
The subcontractor and customer relationships are very versatile between the companies in the regional maritime cluster.
The operational links form a multi-level network which unites the whole cluster and which is its central character.
These links extend far outside the maritime cluster.
Co-operation and networks have been exploited well by the companies and are viewed as a necessary area for development.
Nearly 50 % of the respondents to the survey stated their intentions to co-operate in the future with even more companies.
60 % plan on increasing their co-operative activities beyond their current status.
The co-operation will be deepened.

6. Strengths Provided by the Operational Environment
Broad and comprehensive network of subcontractors and suppliers.
High-standard and highly multiprofessional maritime expertise.
Region’s proximity to the sea.
Far-reaching and strong historical traditions in all the core fields of the maritime cluster.
Diverse training and research opportunities for maritime-related fields.
Supply of labour is quite good. However, the demand for professionally-skilled labour exceeds the supply in the shipbuilding industry in particular and in certain occupations in shipping, too.

7. Most Important Competitiveness Factors in the Regional Maritime Cluster
Location
companies benefit from their location close to the other maritime cluster companies (clients, suppliers, co-operation partners)
proximity to the sea
Skilled labour and technological expertise
Functional subcontractor networks
Know-how
Co-operation
Efficiency of production
International and domestic traffic connections

8. Future of the Regional Maritime Cluster
The future prospects of the maritime cluster are promising
75 % of those who responded to the survey consider the future prospects to be good or very good
Only 3 % of the respondents consider the prospects as poor
The order portfolio of the shipbuilding industry is extremely lucrative on the global scale
The Finnish shipyards are specialised in cruise ship, passenger-car ferry and special-purpose ship production
The order portfolio of Finnish shipyards is full until 2007 and the yard in Turku has orders until autumn 2009
Demand for cruise ships remains high, new orders are expected
The good order portfolio of the shipyards has positive reflections to the subcontractors

9. Future of the Regional Maritime Cluster
A total of 70 % of Finland’s imports and up to 90 % of the exports travel by sea, making navigation and port operations one of the most crucial parts of the maritime cluster also in the future.
There is also a desire to ensure the place of the Finnish flag at the top of as many commercial ship masts as possible
It is not possible to influence the competitiveness of the Finnish flag on the regional level
There is the desire to further develop the shipping operations in south-western Finland
In port operations the future prospects are stable.

10. Public Sector in the Maritime Cluster
In addition to business activities, there is a significant number of public sector organisations and similar actors in the south-western maritime cluster.
The objective of the public sector is to improve the operational possibilities of the companies within the maritime cluster.
Training and educational organisations have their own significant place in the maritime cluster and in securing its future.
The region provides a solid foundation for the businesses operating within the maritime cluster by offering training and further education opportunities at vocational schools, secondary education institutes, professional polytechnics and universities.
The region is also strongly engaged in research and development activities up to the university level.

11. Conclusions
In Southwest Finland, the maritime cluster entity is very diverse and it influences widely the economy and society in the whole region.
The co-operation between the companies has to be developed further and deepened. The co-operation is a prerequisite for growth and it makes new business possible. Co-operation adds cost efficiency and flexibility. It makes possible for companies to concentrate in their own special expertise.
The public sector is expected to improve the operational possibilities of the companies within the maritime cluster both directly and indirectly.

12. Conclusions
A good location is a competitive advantage, but know-how and expertise in particular are the factors, which make the Finnish maritime cluster companies prosperous also in the future.
The high level of networking is a strength for the cluster.
The good future prospects are reflected as a need for labour. The maritime cluster is a growing business area.
There is need for professionals of many business fields: the companies need professionally-skilled labour. This is a challenge for education system, because the demand and supply should meet better than now. There is a need for more co-operation between the companies and educational institutes.

13. Conclusions
The maritime cluster is such an important entity in Southwest Finland, that the objective of all decision-makers on regional level should be the affluence of the cluster and securing its future.
The maritime cluster has far-reaching and praiseworthy historical traditions in south-western Finland. But above all the maritime cluster is an active part of the region’s present.
The maritime cluster is vital and comprises many different maritime industries and businesses. All parts of the cluster are represented in the region and the cluster creates welfare to the whole society.
The core themes of the cluster are co-operation, networking and expertise.

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