APPENDIX B BEST PROSPECT SECTORS FOR U.S. EXPORTERS TO SWEDEN (USD MILLIONS, UNLESS OTHERWISE NOTED) A) Rank of Sector: 1 B) Name of Sector: Computers and Peripherals C) ITA Industry Sector Code: CPT 1993 1994(e) 1995(e) D) Total Market Size: 2,267 2,312 2,427 E) Total Production: 718 732 769 F) Total Exports: 459 468 492 G) Total Imports: 2,008 2,048 2,150 H) Imports from the U.S.: 730 744 782 I) Exchange Rate: 7.80 8.00 8.00 Comments: Sweden is one of the most computer-dense countries in the world. Of the top ten suppliers of hardware in Sweden, seven are American. The others are ICL, Siemens Nixdorf, and Bull. U.S. PC suppliers are facing keen competition from Japanese and Taiwanese companies, especially in the portable market (Toshiba and Chicony). U.S. suppliers of printers are competing with OKI, Canon, Fujitsu, and Epson. Sweden does not have any significant domestic production of computers and peripherals. Some of the production represents manufacture of products by foreign owned companies such as IBM's printer plant. The following markets are expected to expand the most: Workstations $172 million PCs for home use $69 million PC printers $231 million A) Rank of Sector: 2 B) Name of Sector: Travel and Tourism C) Industry Sector Code: TRA 1993 1994(e) 1995(e) D) Total Sales: 12,200 12,900 13,500 E) Sales by Local Firms: 7,690 8,000 8,200 G) Sales by Foreign-Owned Firms 4,500 4,800 5,300 H) Sales by U.S.-Owned firms: 340 360 385 I) Exchange Rate: 7.80 8.00 8.00 Comments: Sweden offers good opportunities for U.S. travel and tourism-related organizations. The general trend for travel to the United States from Sweden is favorable, and should remain so as the economy improves. Several independent surveys confirm that the United States is the most-preferred long-haul destination for Swedes. In 1993 a significant increase in domestic travel was noted. Outside of Scandinavia, West Germany tops the list of destinations to which the Swedes travel. The package tours market is dominated by Spain, including Mallorca and the Canary Islands, Greece and the Greek archipelago. Weekend travel to major European cities has also become more popular. The U.S. Visa Waiver program, which Sweden has participated in since 1989, also facilitates Swedish citizens' travel to the United States. A) Rank of Sector: 3 B) Name of Sector: Computer Software C) ITA Industry Sector Code: CSF 1993 1994(e) 1995(e) D) Total Market Size: 1,248 1,264 1,315 E) Total Production: 641 651 673 F) Total Exports: 17 15 16 G) Total Imports: 624 628 658 H) Imports from the U.S.: 437 440 461 I) Exchanged Rate: 7.80 8.00 8.00 Comments: Swedish computer users are very sophisticated and want only state-of-the-art products. U.S. companies are very well represented in the Swedish market. The American software industry is the largest single supplier. It accounts for more than half of the market for imported software. Major U.S. companies are Microsoft, WordPerfect, Lotus, Oracle, Informix, 3Com, Computer Associates, Novell, Aldus. Some Swedish competitors are Ide-Data, Hogia, Scandianvian PC Systems, Arctic Data. The largest third-country competitors are Software AG, SAP AG, and Cognos. Sweden has the highest per capita number of Windows-users in the world. The following markets are expected to show the largest expansion: Windows applications N/A Application tools $265 million A) Rank of Sector: 4 B) Name of Sector: Electronic Components C) ITA Code: ELC 1993 1994(e) 1995(e) D) Total Market Size: 1,511 1,546 1,623 E) Total Local Production: 712 729 765 F) Total Exports: 446 457 480 G) Total Imports: 1,245 1,274 1,338 H) Total Imports From U.S.: 307 314 330 I) Exchange Rate: 7.80 8.00 8.00 Comments: The U.S.A. is the leading supplier in Sweden of sophisticated high tech components (e.g. Intel, Motorola, Texas Instruments). Strong competitors are the Japanese (NEC, Fujitsu, Hitachi) and the South Koreans (Hyundai, Samsung). Much of export from Europe is really direct product of U.S. tech data manufactured by U.. subsidiaries set up in these countries. Swedish manufacture of components has very little significance and is not a competitive factor for U.S. marketing. Most promising subsector is semiconductors, which has a steadily increasing market. Estimated 1995 total market size for semiconductors is 140 million U.S.$. A) Rank: 5 B) Name of Sector: Aircraft and Parts C) ITA Code: AIR 1993 1994(e) 1995(e) D) Total Market Size: 1111 1133 1156 E) Total Local Production: 921 939 958 F) Total Exports: 641 654 667 G) Total Imports: 831 848 865 H) Total Imports from U.S.: 451 460 469 I) Exchange Rate: 7.80 8.00 8.00 Comments: The aviation industry has been badly hurt by the recession in Europe but with air traffic at long last on the upswing, the situation has improved, even if only a very modest growth can be expected. Domestic output of aircraft and parts is considerable and exports account for a significant portion of Sweden"s total exports. The domestic market was deregulated in July 1992 which increased the competitive situation. Scandinavian Airlines System, the country"s flagship carrier, is going through a difficult downsizing and is in the process of reducing its fleet but will have to replace aging planes