While new orders dipped last year, the Czech Republic's industrial engine, driven by its mighty automotive and machinery sectors and humming at over 80% capacity, continues to power a quarter of the nation's economy, demonstrating remarkable resilience and a key role as the manufacturing heart of Europe.
Key Takeaways
- In 2022, the manufacturing sector accounted for 21.5% of Czech Republic's GDP, with a total output value of approximately 1.8 trillion CZK
- Industrial production index in Czech Republic grew by 3.2% year-over-year in December 2023, driven by machinery and automotive sectors
- The volume of industrial production excluding construction reached 108.5% of the previous year in Q4 2023
- The automotive industry employed 420,000 people in 2023, representing 13% of total employment
- Manufacturing sector total employment was 1.62 million in 2022
- Average gross monthly wage in industry was 45,200 CZK in 2023
- Automotive exports from Czech Republic totaled 16.5 billion EUR in 2022
- Machinery and mechanical appliances exports 12.3 billion EUR in 2023
- Electrical machinery exports valued at 8.7 billion EUR in 2022
- FDI inflow into Czech industry 4.2 billion EUR in 2022, primarily automotive
- Total stock of FDI in manufacturing 45 billion EUR as of 2023
- Green field investments in industry 1.8 billion EUR in 2022
- Czech industry primary energy consumption 25 Mtoe in 2022
- Renewable energy share in industry 15% in 2023
- Natural gas consumption by industry 8.5 billion m3 in 2022
Czech industry thrives with strong automotive, machinery, and export-led manufacturing growth.
Employment Statistics
- The automotive industry employed 420,000 people in 2023, representing 13% of total employment
- Manufacturing sector total employment was 1.62 million in 2022
- Average gross monthly wage in industry was 45,200 CZK in 2023
- Unemployment rate in industrial regions was 2.8% in 2023
- Machinery sector employed 180,000 workers in 2022
- Chemical industry workforce totaled 65,000 in 2023
- Energy sector employment was 45,000 employees in 2022
- Food processing employed 140,000 people in 2023
- Metal industry jobs numbered 120,000 in 2022
- Electronics manufacturing employed 95,000 in 2023
- Textile sector employment declined to 35,000 in 2022
- Construction materials industry had 80,000 workers in 2023
- Pharmaceutical sector employed 28,000 in 2022
- Furniture manufacturing jobs 55,000 in 2023
- Wood processing employed 70,000 workers in 2022
- Glass and ceramics industry 40,000 employees in 2023
- Rubber and plastics sector 85,000 jobs in 2022
- Industrial apprenticeships numbered 25,000 in 2023
- Female employment in industry 38% of total in 2022
- Average age of industrial workers 42.5 years in 2023
- Labor productivity growth in industry 2.8% in 2022
- Vacancy rate in manufacturing 3.2% in 2023
- Part-time workers in industry 8% of total employment in 2022
- Overtime hours in industry averaged 150 hours per worker annually in 2023
- Training expenditure per industrial employee 12,000 CZK in 2022
Employment Statistics Interpretation
The Czech economy is clearly being held together by steel, pistons, and a dedicated army of 1.6 million industrial workers, half of whom are likely on the factory floor right now building your next car while politely waiting for the coffee machine to finish brewing.
Energy and Resources
- Czech industry primary energy consumption 25 Mtoe in 2022
- Renewable energy share in industry 15% in 2023
- Natural gas consumption by industry 8.5 billion m3 in 2022
- Electricity consumption in manufacturing 45 TWh in 2023
- Coal use in industry declined to 4.2 Mtoe in 2022
- Industrial energy intensity 0.18 toe per 1,000 EUR GVA in 2023
- Biomass energy in industry 1.8 Mtoe in 2022
- Oil products consumption 5.1 Mtoe by industry 2023
- Energy prices for industry averaged 120 EUR/MWh electricity in 2022
- District heating supply to industry 2.5 TWh in 2023
- Wind power capacity for industrial use 500 MW in 2022
- Solar PV installations in factories 1.2 GW cumulative 2023
- Energy efficiency investments 40 billion CZK in 2022
- CO2 emissions from industry 35 Mt in 2023
- Hydropower contribution to industrial energy 0.8 TWh in 2022
Energy and Resources Interpretation
While the Czech industry still leans heavily on its fossil fuel crutch, it's cautiously testing a greener leg, making measured but meaningful strides with renewables and efficiency to lighten its considerable carbon footprint.
Export and Import Data
- Automotive exports from Czech Republic totaled 16.5 billion EUR in 2022
- Machinery and mechanical appliances exports 12.3 billion EUR in 2023
- Electrical machinery exports valued at 8.7 billion EUR in 2022
- Total industrial goods exports 85 billion EUR in 2023
- Cars export volume 1.35 million units in 2022 to Germany primarily
- Chemicals and pharmaceuticals exports 7.2 billion EUR in 2023
- Iron and steel products exports 4.1 billion EUR in 2022
- Plastics and rubber exports 3.8 billion EUR in 2023
- Food and beverage industrial exports 2.9 billion EUR in 2022
- Textiles exports 1.2 billion EUR in 2023
- Furniture exports totaled 2.5 billion EUR in 2022
- Glass products exports 1.8 billion EUR in 2023
- Import of machinery parts 9.5 billion EUR in 2022
- Energy imports cost 15.2 billion EUR in 2023 due to gas and oil
- Automotive parts imports 11.8 billion EUR in 2022
- Chemicals imports 6.4 billion EUR in 2023
- Trade balance in industrial goods surplus of 25 billion EUR in 2022
- Exports to Germany 35% of total industrial exports in 2023
- Slovakia as import partner 10% of industrial imports in 2022
- Poland exports from CZ industry 8% share in 2023
- EU share in industrial exports 82% in 2022
- China imports of industrial goods 5.2 billion EUR in 2023
Export and Import Data Interpretation
The Czech Republic has confidently parked its entire economy in Germany's driveway, dutifully assembling a massive trade surplus one Škoda at a time while nervously eyeing its energy bill from the East.
Investment and FDI
- FDI inflow into Czech industry 4.2 billion EUR in 2022, primarily automotive
- Total stock of FDI in manufacturing 45 billion EUR as of 2023
- Green field investments in industry 1.8 billion EUR in 2022
- Automotive FDI from Germany 12 billion EUR stock in 2023
- Machinery sector FDI 8.5 billion EUR in 2022
- Electronics FDI inflow 1.2 billion EUR in 2023
- Chemical industry FDI stock 6.3 billion EUR as of 2022
- Energy sector investments 3.1 billion EUR in renewables 2023
- R&D investment in industry 2.1% of GDP in 2022
- Venture capital in Czech tech industry 450 million EUR in 2023
- Factory construction investments 120 billion CZK in 2022
- Digitalization investments in manufacturing 50 billion CZK in 2023
- South Korean FDI in automotive 2.5 billion EUR in 2022
- US FDI stock in Czech industry 7.8 billion EUR 2023
- Return on FDI in manufacturing 5.2% in 2022
- Number of foreign-owned industrial firms 4,200 in 2023
- Mergers and acquisitions in industry 15 deals worth 1.1 billion EUR in 2022
- Government subsidies to industry 80 billion CZK in 2023
- Private equity investments in Czech manufacturing 300 million EUR 2022
Investment and FDI Interpretation
The Czech Republic's industrial heart beats with a potent, well-oiled rhythm, amassing a colossal 45-billion-euro manufacturing engine fueled by German automotive muscle and global capital, yet it's shrewdly investing that foreign-powered momentum into greening its energy, digitizing its factories, and nurturing homegrown R&D and tech ventures for a more sustainable and intelligent future.
Production and Output
- In 2022, the manufacturing sector accounted for 21.5% of Czech Republic's GDP, with a total output value of approximately 1.8 trillion CZK
- Industrial production index in Czech Republic grew by 3.2% year-over-year in December 2023, driven by machinery and automotive sectors
- The volume of industrial production excluding construction reached 108.5% of the previous year in Q4 2023
- Czech Republic's mining and quarrying production increased by 5.1% in 2022 compared to 2021
- Electricity, gas, steam supply and air conditioning production output was 102.3% of prior year levels in 2023
- Manufacturing turnover in Czech Republic rose by 4.7% in 2022, totaling 4.2 trillion CZK
- The chemical industry produced 1.2 million tons of basic chemicals in 2022
- Metal production in Czech Republic reached 6.8 million tons of crude steel in 2023
- Food industry output value was 450 billion CZK in 2022, representing 8% of total manufacturing
- Textile and leather goods production declined by 2.1% in 2023
- Wood processing industry produced 15 million cubic meters of sawnwood in 2022
- Paper and paperboard production totaled 1.1 million tons in 2022
- Printing and reproduction services output grew 1.8% in 2023
- Coke and refined petroleum products output was 4.5 million tons in 2022
- Pharmaceutical products manufacturing reached 120 billion CZK in value in 2022
- Computer, electronic and optical products production value 250 billion CZK in 2023
- Electrical equipment manufacturing output 180 billion CZK in 2022
- Machinery and equipment production totaled 650 billion CZK in 2023
- Motor vehicles production was 1.42 million units in 2022
- Other transport equipment output value 90 billion CZK in 2022
- Furniture manufacturing production 110 billion CZK in 2023
- Other manufacturing sectors combined output 300 billion CZK in 2022
- Industrial production working day adjusted index was 104.6% in 2023 annual average
- Construction-related industrial production grew 6.2% in 2022
- Market services within industry turnover up 5.3% in 2023
- Total industrial sales reached 5.1 trillion CZK in 2022
- Czech manufacturing capacity utilization rate was 82.4% in Q1 2024
- New orders in manufacturing decreased by 8.1% in 2023
- Industrial producer prices index rose 12.5% in 2022
- Hourly labor productivity in industry was 1,250 CZK in 2022
Production and Output Interpretation
While firmly in the driver's seat as the nation's economic engine with robust output in cars and machinery, Czech industry reveals the delicate balancing act of managing booming productivity against cooling orders and a clearly stitched-up textile sector.
Sources & References
- Reference 1CZSOczso.czVisit source
- Reference 2ECec.europa.euVisit source
- Reference 3WORLDSTEELworldsteel.orgVisit source
- Reference 4ACEAacea.autoVisit source
- Reference 5OECoec.worldVisit source
- Reference 6WITSwits.worldbank.orgVisit source
- Reference 7CNBcnb.czVisit source
- Reference 8UNCTADunctad.orgVisit source
- Reference 9MPOmpo.czVisit source
- Reference 10CZECHINVESTczechinvest.orgVisit source
- Reference 11ERUeru.czVisit source
- Reference 12CVHcvh.czVisit source
- Reference 13STATEstate.govVisit source
- Reference 14CVCAcvca.czVisit source
- Reference 15CEZcez.czVisit source