Survival Kit I.South Moravia: Geography, Labour Force, Economy Economic Branches

Economic Branches

South Moravia ranks among the regions with significant economic potential with its general domestic product representing one tenth out of the national GDP (regional GDP per capita in purchase parity power was 87 % in 2018, EU28=100 %).

Service Industries

Brno is undoubtedly the natural centre of administration and services of the South Moravian Region. Almost 70 % of its workforce employed in various service sectors as well as its significant knowledge potential (high share of university graduates, availability of workforce with foreign language capabilities etc.) ranks the city among the most competitive locations not only within the Czech Republic but also within the Central European region. The city thanks for this reputation to a strong inflow of significant IT investments such as IBM Global Delivery Center CR and Red Hat Czech, both have their software design centres here. But also to the production companies, such as Honeywell Technology Solutions (Global Design Center - Aerospace, Home & Building Technologies), Thermo Fisher Scientific/ FEI (electron microscopes), BMT (medical technology), Siemens (industrial turbomachinery), with their research and development centres in Brno. Multinational companies have gradually established tens of such centres in the region. Another important player in the service industries in Brno is Trade Fairs Brno (Veletrhy Brno) – the largest company in Central Europe specialised in fairs and exhibitions makes Brno an important hub of international trade. However, the most significant employers in the sector of service industries are The Faculty Hospital Brno and Masaryk University (both with more than 5,000 employees). Major companies have established their shared service centres or customer support centres such as: Vodafone, SolarWinds Czech, Lufthansa, PPG Industries and Zebra Technologies.

Tab. 5: Representatives of IT sector in the South Moravian Region

Company name	Location	Specialization
Asseco Group	Brno	GIS solutions
AT&T Global Network Services	Brno	technical support of network (LAN) telecommunication services
Avast Software	Brno	security software products
CGI IT Czech Republic	Brno	IT end-to-end services and solutions
Infosys BPO	Brno	infrastructure management and package implementations
RWS Moravia	Brno	specialized global services, digital marketing and outsourcing
Red Hat Czech	Brno	software development
SAP ČR	Brno	enterprise application software, development centre
Y Soft Corporation	Brno	intelligent enterprise office solutions

Source: RRA JM, 2020

Biotechnology

The South Moravian region is turning into a central European biotech hub. The current initiative - a biotech innovation cluster – is based on the 120 million USD campus of Masaryk University (www.muni.cz) fostering science in the fields of medicine, chemistry and biology.

The university’s integrated laboratories for biomedical and environmental technologies and a large research and teaching hospital have already been built and opened. Biotechnological incubator (INBIT) for more than thirty biotechnology start-ups is ready from 2008. The area of nearly 3,000 square meters contains labs, offices, meeting halls, kitchens and necessary technical support and infrastructure, and other 7,000 square meters of operating premise for the beginning perspective entrepreneurs.

Brno’s position in the field of biotechnologies was also significantly improved through project such as Central European Institute of Technology (CEITEC) becoming a supra-regional centre for innovative research in the field of nanotechnology, structural biology, molecular medicine, genomics and proteomics of plant system, veterinary medicine and many others. The Operational Program R & D for innovation (European Centres of Excellence) is the major source financing this project of estimated costs exceeding 200 mil. EUR. For more information see the chapter VII.

Another project financed through this operational programme is International Clinical Research Centre (ICRC) of St. Anne’s University Hospital Brno which represents a new generation research centre focused on cardiovascular and neurological diseases. The centre with total budget of approximately 220 mil. USD for the period 2011 – 2015 is being built up in cooperation with American Mayo Clinic (www.mayoclinic.org) and other Czech and foreign partners. For more information see the chapter VII.

More information about biotechnology can be found on www.gate2biotech.com.

Processing Industry

In spite of the fact that several big, traditional, Czech-owned engineering companies faced serious financial difficulties during the 1990s (esp. Zbrojovka, Královopolská, Zetor) and thousands of employees have been dismissed, the region’s most important industries are still engineering and metalworking (especially power engineering, mechanical engineering and electrical engineering) and electronics. These are followed by chemical and pharmaceutical industries, food-processing and textile manufacturing which, however, does not reach its former fame.

Tab. 6: Representatives of processing industry in the South Moravian Region

Company name	Location	Specialization
Engineering and metalworking
ČKD Blansko Holding	Blansko	water turbines
Daikin Device CR	Brno	air conditioners and accessories
IFE-CR	Modřice	automatic door systems for railway vehicles
Kovolit	Modřice	non-ferrous metal founding, forging
Královopolská	Brno	crane and hoist device
Lear	Vyškov	automotive seating systems and electrical power management system
Metaldyne Oslavany	Oslavany, Zbýšov	cold pressing of parts for automotive
Minerva	Boskovice	sewing machines
Novibra	Boskovice	spindle technology
OTIS	Břeclav	elevators, escalators and moving walkways
Siemens Industrial Turbomachinery	Brno	steam turbines
s. n. o. p. cz	Pohořelice	metal parts for the automotive industry
Šmeral	Brno	forming machines
TOS	Kuřim	cutting machines
VAG	Hodonín	armatures for water management
Zetor	Brno	tractors, agricultural machinery
Electronics
ABB	Brno	electrification solutions and medium voltage products
ALPS Electric Czech	Sebranice	electronic components
Ademco	Brno	security technology
AVX Czech Republic	Bzenec	tantalum capacitators
CommScope	Modřice	communications equipment, antennas
Gebauer a Griller Kabeltechnik	Mikulov	cables, wires and cable harnesses
Juli-Motorenwerk	Moravany	electric motors for handling machines
Siemens Electric Machines	Drásov	synchronous generators
Thermo Fisher Scientific Brno/ FEI	Brno	electron microscopy solutions
Tyco Electronics Czech	Kuřim	cable and connector technology
VUES/ Moog Brno	Brno	special and non-standard electric rotating machines
Textiles, wearing apparel, leather and related products
DINA - HITEX	Bučovice	surgical drapes
Kordárna	Velká nad Veličkou	cord fabrics
Lohmann & Rauscher	Slavkov u Brna	wound care and compression therapy products
Nová Mosilana	Brno	yarn and woollen fabrics
PFNonwovens Czech	Znojmo	synthetic nonwoven textiles
Food-processing
Delimax	Hodonín	fish products and delicatessen
Hamé	Podivín	jams and fruit mixtures
Moravskoslezské cukrovary	Hrušovany nad Jevišovkou	sugar processing
Penam	Brno	bakery products
Savencia	Hodonín	dairy products
Starobrno	Brno	beer production
The Candy Plus Sweet Factory	Rohatec	candy production
Vodňanské kuře	Modřice	production of frozen chickens, small meet products
Chemical, pharmaceutical, plastic
Alca plast	Břeclav	sanitary ware
Bioveta	Ivanovice na Hané	veterinary and human products
BKR CR	Vyškov	plastic components for roof windows
Fosfa	Břeclav	fertilizers
Gumotex	Břeclav	polyurethane foam and rubber products
Hartmann-Rico	Veverská Bítýška	cotton-wool and bandage materials
Nevoga	Znojmo	plastic profiles and plastic spacers
Ceramics and glass
Českomoravský cement	Mokrá	building materials – cement, concrete
Laufen CZ	Znojmo	bathroom ceramics
P-D Refractories CZ	Velké Opatovice	refractory products - linings for heating equipment
Pyrotek	Blansko	refractory materials for foundries and aluminium industry
Saint Gobain – Adfors	Hodonice	glass fibers
Vetropack Moravia Glass	Kyjov	glass containers for the beverage and food industry
Paper and wood-processing, printing
CPI Moravia Books	Pohořelice	printing
Unilin	Vyškov	wood flooring industry
Moraviapress	Břeclav	printing

Source: RRA JM, 2020

Agriculture

Despite being one of the most fertile parts of the Czech Republic with a relatively important role played by agriculture, the overall importance of this sector in the economy of the region is relatively small. Currently agriculture employs only 2.9 % of labour force. Poultry breeding dominates livestock production followed with pig farming and cattle breeding (especially in the hilly areas in the northern part of the region). Crops cultivated in the region are mainly cereals (wheat, barley), maize and oil-seed rape. Viticulture is an important regional specialty whereas 93 % (16,352 hectares in 2020) of Czech vineyards located in South Moravia. Contrary to the overall trend in agriculture, this sector has been on a steady increase - especially due to the growing popularity of wine among Czech consumers but also due to an increased export abroad. Production and processing of fruits (share out of total Czech Republic harvest – peaches 54 %, apricots – 76 %) and vegetables (cucumbers – 55 %, tomatoes – 88 %) and oil seeds (sunflower – 69 %) are also important and employ a considerable share of population in the southern part of the region (more than one tenth out of the total number of employees).

Universities Labour Force

Regional Development Agency of South Moravia
Výstaviště 405/1
603 00 Brno
Czech Republic
www.rrajm.cz