Advanced Manufacturing industry

The Advanced Manufacturing – that includes the Metal, Mechanical and Electronics segments - is a cornerstone of the manufacturing sector.

Indeed, the sector is the largest exporting industry of the Portuguese economy, selling in over 200 markets and reaching record export figures in 2022 (more than €19B sales to foreign markets in 2022).

This Industry has strengthened its international reach, namely in Spain, Germany, France, UK, Italy, Angola and the North American markets, as the USA. In 2022, the sector represented 22% of the companies in the manufacturing industry and also employed 22% of its workforce.

Quality, precision, innovation and reliability form the value proposition of the sector in Portugal, which has also been on the foreign investors’ radar, with various international companies establishing a production footprint in the country.

The industry is supported by a strong and sophisticated R&D, innovation and training ecosystem. INESC TEC¹ and INEGI² are reference R&D institutions. Moreover, CATIM³ and CENFIM⁴ leverage the innovation necessary to drive export growth and qualify the workforce by adapting it to the specific skillsets the industry needs.

¹ Institute for Engineering, Technology and Systems Science and Computers - R&D Institution
² Institute for Science and Innovation in Mechanical Engineering and Industrial Engineering - Technology Interface Center
³ Technology Interface Center - a partner of the companies in the sector in the areas of innovation, quality, technology, and internationalization
⁴ Center for Professional Training of the Advanced Manufacturing Industry

Portugal's largest export sector

24% of total national exports of goods

Metal Processing Industry

The Metal Processing Industry subsector is actively engaged in innovation, supplying the most sophisticated markets in Europe and the USA.

The Metal Processing Industry subsector in Portugal displayed relevant exports’ growth between 2018 and 2022, based on the strong increase in sales to markets including Italy, Norway, Ireland, Finland and the USA.

The industry’s main customers are located, not only in advanced EU economies, but in other equally sophisticated and more distant markets: the USA features in the top 5 main destination markets for Portuguese exports.

Also, there are various fields/skills with a relevant dynamic in Portugal, including precision mechanics, electric motors, automation, general artificial vision systems and deep learning vision systems, among others.

In general, the competitiveness of the Portuguese sector is based on technical and engineering capacity, the incorporation of modern design requirements, and highly qualified human resources in production and control.

Did you know?

... AIMMAP - Association of Metallurgical, Metalworking and Related Industries of Portugal – created the brand METAL PORTUGAL? An international umbrella brand that is meant to encompass the whole sector based in Portugal?

Electric, Electronic and Mechanical Engineering Industry

Portugal has reinforced its digital maturity, supported by significant R&D capabilities and tech skills, leveraging its competitive positioning in the presenting subsector.

The sector's ability to stand out internationally is based on the incorporation of automation, robotics and Industry 4.0, handled by highly specialized human capital.

The R&D investment in the Electric, Electronic and Mechanical Engineering subsector grew 41% between 2016 and 2020¹ . Portuguese companies have strongly invested in innovation in various fields (e.g., artificial intelligence, cybersecurity, robotic automation or digital tools).

Moreover, the sheer volume of this industry’s exports and its geographical pattern underpin the sophistication and high positioning of its products.

Portugal is also recognized internationally for its strong potential in this segment. A recent highlight was the fact that Portugal was the 2022 partner country at Hannover Messe - the biggest industrial technology fair in the world. At Hannover Messe 2023, Portuguese companies presented further innovative technologies, such as an autonomous mobile robot forklift. Indeed, Portugal offers solutions for digital transformation worldwide for the automotive, electronics, and intra-logistics sectors.

¹ IPCTN (2020)

Did you know?

… Neadvance is a Portuguese Machine Vision and Intelligent Systems company which develops computer vision and artificial intelligence solutions for the digital and industrial revolution worldwide? An example can be the low-code platform for Industry 4.0 that allows anyone to program their own machines that will interact with the overall industry ecosystem.