Kibbutz factories sales reached a peak of NIS 46.8 billion last year - 2019


by Ifi Reporter Category:Government Jan 26, 2020

Kibbutz factories sales reached a peak of NIS 46.8 billion last year, according to summary data presented at the annual conference of the Kibbutz Industry Association, held Tuesday, with the participation of CEOs, factory heads and economic managers, representatives of kibbutzim and senior executives in the Israeli business sector.
The Kibbutz Industry Association's CEO, Miriam Druck, said that the kibbutz's main engine of growth was also in 2019 production sites located outside the state, whose sales grew 4.3% and also peaked at NIS 9.7 billion. This is a continuation of a multi-year trend, which has Expression of globalization processes and the desire of enterprises to strengthen competitiveness, however, in terms of national interest, we must create an infrastructure of incentivizing and reducing regulatory burdens that will encourage industrial development within Israel and additional jobs, especially in the periphery.
According to the union's annual economist, Shlomit Arbel, the local kibbutz production also grew in 2019, albeit at a more moderate rate. Kibbutz factories in Israel reached NIS 13.5 billion, while exports from kibbutz abroad increased to NIS 15.5 billion.
The data reveal that the export of the collective industry is largely (77%) based on traditional industries, mainly in the plastics and rubber, metals and food sectors. The association has set itself the goal of strengthening the high-tech in kibbutzim and in the framework of the annual conference will unveil innovative startups in areas that connect industry and agriculture to high-tech and meet with the entrepreneurs. A panel will also discuss the UN's global goals for sustainable development and the opportunities it offers to kibbutzim.

A new report from the Manufacturers Association indicates that the downward trend from which Israeli exports are also suffering in the coming quarter, with a further decline of about 2%. This is at the same time as the output of Israeli industrial companies' overseas production lines is projected to jump 17%, after falling in the last quarter of 2019.
President of the Manufacturers Association, Shraga Brosh: "The Bank of Israel should concentrate on its goals of strengthening the economy and improving the competitiveness of exports and will not act to introduce uncertainty in the Israeli tax regime. The latest statement will cost the Israeli economy billions of dollars if Israel's tax policy is the only benefit to be exported. Is going to change again ". 
Israeli production abroad continues to expand as production in Israel shrinks. According to an analysis by the Manufacturers Association, which examined the data of about 160 Israeli manufacturing companies. While their exports are expected to decline by 2% in the coming quarter, they have already reported a decline in the last quarter of By 2019, output in companies' overseas production lines is expected to jump no less than 17%. In addition, in the coming quarter, Israeli companies are expected to reduce manpower by about 1% while overseas manufacturing sites will expand the workforce by about 9%.
Manufacturers also reported a sharp 11% drop in output in the last quarter of 2019. In the next quarter, output is expected to stagnate. Passover usually results in increased output and local sales and if it had not taken place in early April, output would have been likely to decline.
Meanwhile, Israeli manufacturing companies producing overseas reported a 11% increase in output in the last quarter and a 17% increase in the coming quarter, as mentioned above. The Bank of Israel's calls are just one example of the range of reasons why Israeli companies prefer to give up government favors and uncertainty. Regulatory and move to produce overseas. To this should be added the high production costs in Israel, the burden of government intervention from the world's heaviest and a severe shortage of professional manpower. 88% of industrialists reported difficulty finding such manpower.



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