According to a recent growth company survey by Tesi (Finnish Industry Investment), 2025 looks more promising across all sectors compared to the previous year. The survey of Finnish SMEs reveals that larger companies are resuming investments, with positive forecasts for revenue and order book growth. Companies reported a 2% revenue increase in 2024 and are now projecting an average growth of 8% for this year. Additionally, slight increases in order books provide further encouragement. Jakob Sandell, Tes’s Research Manager, notes that there is light at the end of the tunnel, and growth is accelerating.
Positive Outlook for Industrial Companies
Henri Hakamo, Tesi’s Director of Strategy and Research, highlights a turning point in the outlook for industrial companies as the most significant positive news. Investments and revenue in the industrial sector are expected to return to a growth trajectory. As a major export-driven sector, the success of the industrial sector impacts other industries as well.
The information and communications sector continues to outpace other industries on nearly all metrics, including revenue growth, internationalization, and investment levels. Companies in this sector predict a 21% revenue increase from last year and expect order books to grow by over 15%. The sector also exhibits strong investment appetite, with around one-quarter of companies planning to invest more than 20% of their revenue in 2025.
Investments Are Increasing, but Growth Is Uneven
While the total share of investing companies remains steady at around 50%, those that are investing are committing more resources than before. Particularly larger companies with revenues exceeding €20 million are expected to ramp up their investments.
Venture-backed companies, in particular, are experiencing faster growth and higher investment levels. These firms anticipate a 43% increase in revenue, with nearly half planning to boost their investments further.
The Growth Company Survey, conducted by Tesi and Taloustutkimus, targeted SMEs and gathered responses from 1,470 companies between October 8, 2024, and January 2, 2025.
Industrial Investments on the Rise
According to the latest investment survey by the Confederation of Finnish Industries (EK), industrial investments are expected to grow this year. If expectations are met, investments will increase by nearly 4% to approximately €9.7 billion. Fixed investments are likely to dominate over research and development (R&D) activities.
EK’s Chief Economist Penna Urrila notes that the growth in investment expectations is a positive signal, even though the projected growth remains modest.
Investments are anticipated to increase in the food, construction, and technology industries. Expectations in the service sectors have also improved, which is good news for Finland’s economy and employment. However, investments in the chemical, forest, and energy industries are expected to remain below last year’s levels.
Investment Trends in the Food Industry
EK’s investment survey indicates a 24% increase in food industry investments for this year, with companies planning to invest €1.2 billion in fixed assets such as equipment, machinery, and buildings. However, growth-oriented investments remain limited, accounting for only 9% of the total.
While the overall investment level is rising, most of the funds are being allocated to maintaining or improving existing capacity rather than driving new growth. Many of the planned investments aim to replace aging facilities nearing the end of their lifecycle.
Bate Ismail, an economist at the Finnish Food and Drink Industries’ Federation, states that the increased investment plans reflect companies’ need to upgrade existing production facilities and meet regulatory requirements. Rationalization and other purposes will account for 56% of investments this year, focusing on meeting environmental standards and improving energy efficiency. About 35% of the sector’s investments will be directed towards renewing and replacing existing production capacity, enhancing operational efficiency.
Despite the cautious optimism, Finland’s investment growth remains tied to maintaining competitiveness and attractiveness as an investment destination. Sustained investment growth beyond 2025 will require ongoing efforts to ensure a favorable business environment.