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Jerusalem: Urban Characteristics and Major Trends in the City's Development
Part II: ECONOMIC AND URBAN DEVELOPMENT
E. Industry in Jerusalem
E1. The Scope of Industry
The Jerusalem branch of the Israel Manufacturers Association (IMA) has shown that the scope of local industry has increased in Jerusalem over the past few years.
Table 9 : Scope of Industry in Jerusalem 1992-1995 (selected years)
| |
1992 |
1994 |
1995 |
| Number of Factories (5 persons or more) |
523 |
548 |
625 |
| Number of Employees |
15,742 |
17,020 |
18,777 |
| Revenue (in NIS millions) |
3,194 |
5,207 |
5,812 |
| Exports (in $ millions) |
464.5 |
753 |
701 |
Financial data (NIS millions and $US millions) at uniform prices according to yearly average prices of the report year.
*Industry in Jerusalem in 1995 includes:
- 6.3% of total factories in the country
- 5.0% of total employees in industry in the country
- 4.0% of total industrial revenues in the country
- 6.2% of total industrial exports by the country
E2. Export-Oriented Industry
Based on the information collected by the IMA, it can be determined that an export-oriented economy has emerged in Jerusalem.
In 1995 there was a drop in the exports as ratio of the turnover and in the value of exports produced per employee, both in Israel and in Jerusalem.
- The exports as ratio of the turnover in Jerusalem reached 36.3% in 1995, a decrease from the previous year, when it reached 43.6%. It also compares favorably on a national level, where the weight of exports in proportion to revenues for those two years decreased from 28% to 23.5%.
- Industrial exports per employee in Jerusalem reached $37,100 in 1993, $44,200 in 1994 and $37,300 in 1995. On a national level, industrial export per employee reached $28,500 in 1993, $29,500 in 1994 and $30,000 in 1995.
E3. The Structure of Industry
An analysis of the structure of the industries in Jerusalem in 1994 indicates the following:
- The greatest number of factories are in Textiles, Apparel and Footward, following by Food, Beverages, and Tobacco branch and Printing and Publishing.
- The greatest number of employees are found in Food, Beverages, and Tobaccao and in Printing and Publishing, followed by Chemicals and Pharmaceuticals.
- The most profitable branches in terms of revenues are the high-tech branches: Chemicals and Pharmaceuticals, followed by Electronics. Revenues from Chemicals and Pharmaceuticals account for 27 percent of the all industrial revenues in Jerusalem; Electronics account for 16 percent.
- Electronics accounts for the highest amount of industrial exports in Jerusalem, at 41 percent of all industrial exports.
Table 10: The Division of Industry in Jerusalem by Major Branches, 1994 (Percentages)
| Branch |
Factories |
Employees |
Revenue |
Exports |
| Chemicals and Pharmaceuticals
| 0.6 |
14.4 |
26.5 |
32.8 |
| Electrical Supplies
| 2.6 |
4.0 |
3.7 |
2.5 |
| Electronics
| 2.3 |
7.7 |
16.0 |
41.3 |
| Textiles, Apparel and Footware
| 18.6 |
11.8 |
6.9 |
4.0 |
| Food, Beverages, and Tobacco
| 16.2 |
17.7 |
12.1 |
0.4 |
| Wood Products and Furniture
| 13.2 |
5.8 |
3.8 |
0.0 |
| Publishing and Printing
| 15.9 |
17.0 |
10.3 |
1.1 |
| Metals and Machinery
| 11.4 |
9.1 |
8.9 |
2.9 |
| Jewellery, Goldsmiths and Silversmithing
| 4.7 |
3.9 |
6.0 |
12.0 |
| Miscellaneous and Other
| 14.0 |
8.3 |
5.9 |
2.6 |
Source: Israel Manufacturers Association, Jerusalem Branch.
E4. Investment in Industry: Practice and Potential
Investment has enabled many new factories to open in Jerusalem (particularly in the high-tech sector) and many more to receive licenses. According to the Jerusalem Association of Industrialists, plans to open new factories and expand existing ones have been approved as follows:
- 1991: 23 programs, with investments totaling $US 88 million.
- 1992: 54 programs, with investments totaling $US 250 million.
- 1993: 44 programs, with investments totaling $US 60 million.
- 1994: 33 programs, with investments totaling $US 54 million.
- 1995: 43 programs, with investments totaling $US 96 million.
The greatest number of industries whose programs were approved are involved in electrical engineering, electronics, and computer programming. It is estimated that these new industrial enterprises will create 1,500 new jobs.
Investments in industry based on licenses approved in the preceding year came to:
- in 1992: $US 101.5 million
- in 1993: $US 123.7 million
- in 1994: $US 74.7 million
- in 1994: $US 55.3 million (80 plans)
The percentage of industrial investment in Jerusalem out of the national total came to:
- in 1991: 4.3%
- in 1992: 10.4%
- in 1993: 3.7%
- in 1994: 3.5%
- in 1995: 6.4%
In addition, a number of major industrial projects will soon be completed, further increasing employment opportunities in Jerusalem. These include the Manhat Technological Park, the Emek Zion development project, the industrial park of Giv'at Shaul, Atarot, the industrial park of Har Hotzvim, the industrial park east of Pisgat Ze'ev, and the industrial park alongside Kafr Aqb. Also, approval for a joint industrial venture by the Municipality of Jerusalem and the nearby town of Mevasseret Zion is expected to be approved soon. This industrial park, which will cover an area of 550 dunams, will be located in Mevassesret Zion.
E5. Industrial Manpower
Jerusalem has a high percentage of professional and scientific manpower, among both the veteran population and newcomers to the city. By developing knowledge-based and high-tech industries, this population will be absorbed adequately in the local workforce and, hopefully, be induced to remain in Jerusalem. Already, the demand for professionals in Jerusalem's high tech industries exceeds the supply. In order to increase the ranks of Jerusalem's professionals, especially those trained in technology, plans are underway to establish an academic college with an emphasis on technology.
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