Survey: Chemical, transport, food industries most effective

Prague, Oct 24 (CTK) - The chemical, transport and food-processing industries are currently the most effective business sectors in the Czech Republic, while the least effective are education, accommodation and catering, the Czech Capital Information Agency (CEKIA) told journalists Wednesday.

According to CEKIA's effectivity survey, the victorious sectors are demanding for capital. "They lay considerable demands on the management's ability to handle corporate assets adequately as well as to pursue investment policy with regard to the cash-flow and use of loan capital for the purpose of reducing capital costs," said Michal Ricar, an analyst of the Bisnode group in the Czech Republic.

The chemical industry is characterised by input barriers in the form of considerable initial investments in production. This is, however, offset by possible higher rentability and productivity, Ricar said.

The transport and storage sectors are characterised by an increase risk connected with the economic cycle and considerable logistic requirements, Ricar said.

In the food-processing industry it is necessary to overcome higher input barriers, according to Ricar.

CEKIA was assessing over 11,000 companies in 2009-2010 and about 6,000 companies last year. The survey involved companies with sales exceeding Kc50m and at least 10 employees.

CEKIA is part of Bisnode AB, a leading provider of digital corporate and economic information in Europe.

Effectivity of most important business sectors in CR in 2009-2011:

Sector average assessment for three years ranking in 2011
chemical industry 3.7 5th
transport and storage 4.3 5th
food-processing industry 5.3 7th
car industry 5.7 3rd
real estate 6.0 1st
mining and extraction 6.3 2nd
engineering industry 6.7 11th
manufacturing industry 6.7 12th
agriculture, forestry and fishing 8.3 9th
electricity, gas and heat production and distribution 9.0 4th
health and social care 9.7 14th
construction 10 9th
wholesale and retail sale 11. 7th
information and communication activities 12.3 13th
hotels and restaurants 14.3 15th
education 15.7 16th

Source: CEKIA