Industrial output rose by 14% in Jewish year 5770 (September 2009-September 2010), after falling 6.5% in 5769, the Manufacturers Association of Israel announced today.
Sales by industry totaled $93 billion in 5770, with the chemicals, electronics, and food industries accounting for 60% of the total. Manufacturers hired over 12,000 people during the year, boosting the labor force by 3.55, after firing 21,000 employees in 5769. Israeli industry currently employs 352,000 people, whose average gross monthly salary is NIS 11,350, 40% above the average business sector wage, and triple the minimum wage.
The rapid growth in output encompassed all industries. Two-thirds of the growth was achieved by high-tech industries, whose output rose 20% in 5770, after falling 1% in the previous year. The Manufacturers Association noted, however, that the pharmaceuticals industry was almost solely responsible for the growth. This sector basically means Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), whose growth rate in 5770 was spurred by the consolidation of the results of its acquisition of Barr Pharmaceuticals of the US.
The Manufacturers Association cautions that despite the growth, industrial output has not yet returned to its level of late 2008, before the global economic crisis.
Industrial exports rose by over 20% in real terms in 5770, after falling 7% in 5769. All industrial sectors achieved double-digit growth for the year, but 85% of the growth was achieved by high tech and mixed high-tech industries, whose exports rose 20% and 32%, respectively.
Published by Globes [online], Israel business news - www.globes-online.com - on September 7, 2010
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