The BDO report, the main points of which are published here for the first time, indicates that the chemical industry in Haifa Bay is responsible for about 11% of employment in the business sector in the city and for 0.6% of GDP
"Productivity 2.7 times higher than average"
Photography:
Michelle dot com
The closure of the chemical industry in Haifa will lead to severe damage to the Israeli economy, according to a new report by the international consulting firm BDO, the findings of which are published here for the first time. The report was commissioned by the Manufacturers Association
The background is the soon-to-be-convened convening of the Inter-Ministerial Executive Committee, led by the head of the National Economic Council and the Prime Minister's economic adviser, Prof. Avi Simhon, to examine the future of the chemical industry in Haifa.
According to the report, the total contribution of the chemical industry in Haifa Bay to the economy is about NIS 8.3 billion, which constitutes about 0.6% of Israel's GDP.
In addition, about 11% of the employment in the business sector in Haifa Bay is from the chemical industry.
Industry in the Gulf region is a leader in labor productivity, estimated at NIS 990,000 - 2.7 times the economic average and more than any other industry, except for communications services, which also include the high-tech industry.
High labor productivity in the chemical industry yields wages twice as high as the average wage in the economy for those employed in the industry.
According to Chen Herzog, a partner and chief economist at BDO who prepared the report, "Closing the chemical companies in the Gulf will hurt tens of thousands of households and significantly hurt growth and employment in the Israeli economy." IHS, according to which there are significant deficiencies in a report compiled by the consulting firm McKinsey about three years ago and which concluded that the industrial plants in Haifa should be closed.
