Manufacturing commodities for export
The extent and diversity of Amsterdam's industrial activities comes as a surprise to some newcomers. There are about 10,000 industrial establishments of every size in the region, representing nearly 16 percent of the total workforce.
The Dutch market alone -- more than 15 million people -- cannot justify the creation of large-scale business operations. The solution is to develop international trading networks and industries that thrive on exports. The result is a formula for success for high-tech, manufacturing and agricultural firms established here.
This constitutes one of Amsterdam's greatest strengths. The focus on exports and the ability to receive and process raw materials has attracted a wide variety of industries to the Port of Amsterdam and its sister ports along the Amsterdam-North Sea Canal.
The food processing sector is a star performer in this respect, including goods such as chocolate, salad oils, coffee, diary products and frozen dinners. Bonded warehouse facilities are available for exports from and imports to the Netherlands.
The advantages of such facilities focus on the ease with which goods can be reexported and the absence of customs formalities. Furthermore, no value-added tax or import duties are charged until goods are sent to their final destination.
Amsterdam has the skills and rich educational infrastructure that ensures the continuous supply of a well-trained industrial workforce, especially in the fields of (bio)medical science, natural science and environmental technology. Extensive university research studies have shown that the Netherlands stands secondly only to the United States -- ahead even of Japan -- in manufacturing productivity worldwide.
The moderate attitudes of the labor unions are renowned here. Lost days due to work stoppages are among the world's lowest. Dutch labor policies include programs aimed at training and employing long-term unemployed people and other disadvantaged groups. Incentives and subsidies are available under a wide range of programs.
Foreign companies are encouraged to settle in the Amsterdam area and many have done so. Fiscal regulations are favorable and the Netherlands has more tax treaties than any other country in Europe. Nominal land costs are offered as an incentive for job creation.
The largest manufacturing sectors -- each representing from 10 percent to over 20 percent of the total -- include aircraft, books, chemicals, energy control devices, food and food processing equipment, generators, industrial diamonds, printing and publishing equipment, tobacco products, transportation equipment and air bags for automobiles.