NIHAK2019

2

3 Editorial

4 An entrepreneur’s partner at all stages

5 Coworking - A global phenomenon

6 Business Services - Experts to help you

8 Projects are a source of growth and development

9 Project presentation: Digital Change Management

10 Project presentation: New growth from the bioeconomy

11 Partner: Kerttu Saalasti Institute

12 Number of companies and amount of financial support for regional business

14 Development of the sub-region’s population and unemployment rate

15 The Story of a mover: The Upstream Walker

16 Events throughout the year

17 Sub-regional business life

18 Finance and administration

19 Staff

20 Annex: Migration

22 Annex: List of projects

CON

TEN

TS

NIVALAKÄRSÄMÄKI

PYHÄJÄRVI

HAAPAJÄRVI

REISJÄRVI

759 KPL

+50

603 KPL

+26

295 KPL

+18

450 KPL

+22 222 KPL

+16

Nivala

Haapajärvi

Pyhäjärvi

NivalaKärsämäki

Pyhäjärvi

Haapajärvi

Reisjärvi

Action Report 3

The positive mood in the business life of the Niva-la-Haapajärvi Sub-region continued during 2019. New companies have sprung up in the area, many are investing and looking for growth. At the same time, this means that the availability of labor is an increasing challenge now and in the future.

One response to this challenge is the internation-alization of the region. NIHAK carries out grassroots internationalization work with local companies and offers them a wide range of practical assistance. There are good examples of how a company can successfully find its way to the global market from this region as well.

At the same time, however, internationalization is also needed within the region. The international students of the University of Oulu and the region’s University of Applied Sciences are good sources. For example, companies in the area can recruit the students for summer jobs or in doing their thesis. In this way, the threshold is lowered for permanent employment on both sides.

An employee from elsewhere can offer the company a good opportunity to expand the net-work abroad. A foreign worker may also be the best exporter to his/her home country. The internation-alization of the workforce will help companies and residents in the region to adapt to change and keep the region competitive in the future.

Companies should also look at the youth. Young adults are looking for interesting career paths, and they can be found in our area. The belief in an idea and long-term research is the story behind many interesting companies. A good example of this are the companies based on the circular economy, whose solutions are also in demand in the international market.

Nivala-Haapajärvi Sub-region NIHAKPublisher: Hanna Perkkiö, Layout: Marika Elina Kaarlela/Gekkografia, Cover photo: Adobe Stock, Ari-Pekka Hihnala, other photos NIHAK unless otherwise mentioned

Toni KrankkalaCEO

EditorialBoldly into a new career!

4

Finnsvala Oy, a traditional Finnish compa-ny, operates in Kärsämäki, specializes in underwear and thermal layered clothing used in challenging conditions.

The company is now seeking a wider foothold abroad. The first steps have been taken in Germany, Denmark, Poland and the Benelux countries. The newest export countries are South Korea, Spain and Israel. They are also looking at Japan and Russia.

CEO Onerva Aakko says that NIHAK has been a partner of the company at many different stages.

“We use NIHAK’s services a lot. For example, participation in international trade fairs is essential to gain visibili-ty, and NIHAK has helped us apply for grants for trade fair participation. We have also received help from NIHAK in our own development projects. The neces-sary professionalism can always be found therein.”

the international markets

AN ENTREPRENEUR’S PARTNER AT ALL STAGES

NIHAK’s mission is to help companies succeed. Our experts serve across mu-nicipal borders, so their special expertise can be utilized by companies through-out the region. At present, business services serve entrepreneurs in Kärsämäki, Nivala, Pyhäjärvi and Reis-järvi. We implement development pro-jects throughout the southern part of Northern Ostrobothnia.

A free service for your companyAs an entrepreneur, you get help at all stages of your business. Whether it is a start-up company or a company that has been operating for a longer period, we always serve you personally and with the needs of your company in mind. The practical service of our expert also covers the application process for financing alternatives. We guide, advise and work together on the necessary documents.

“When we built our own facilities, NIHAK helped with project planning. They have also helped us improve competitiveness, marketing and export plans.” Esa Lohe-la, Hero Mechanics Oy

Development, partnerships and networksTo succeed, a company must innovate and develop its operations. The pro-jects that we implement, together with the municipalities, companies, educa-tional and development organizations

and other sub-regions give the compa-nies a little additional boost. The pro-jects help develop a wide range of busi-ness areas, from managerial skills to well-being at work, from e-commerce to sales and branding. We also organize inspiring occasions and events, which are attended by hundreds of companies in our area every year.

“When we expanded our online store abroad, translation work and marketing required big investments. Among other things, we received help from NIHAK to fill in the necessary support applications.” Kimmo Maijala, Shoe and Clothing Store Stiletto Oy

From the home field into the worldWhen it’s time to head to new markets, NIHAK has the expertise to offer tips for the road. Our experts map out the pre-conditions for internationalization and give their views on how you should move forward into the world. We help in finding financing and funding and create contacts and networks in the target country. Through national operators (eg Business Finland), your company can apply for funding to purchase expert services or participate in international trade fairs.

“During the trade fair trips organized by NIHAK, we have been able to meet potential customers.” Ilpo Eskola, RST Steel Oy

FINNSVALA HEADS FOR

Are you planning your own business? Need help developing a business or perhaps looking into the international market? NIHAK provides expert services for all stages of the business.

COWORKING OFFERS FLEXIBILITY AND A FEELING OF COMMUNITY

Global phenomenon

Self-employed people and freelancers are a expand-ing group in working life. At the same time, in com-panies and work communities, project-based work is increasing, employees are moving around more, and remote workers are no longer a rarity either.

As new ways of doing work become more com-mon, new places for working will also be needed. In Finland and around the world, a phenomenon called coworking has risen for this need. It refers to a service concept that provides entrepreneurs and companies with premises for flexible use.

Coworking is not just a space but also a way of thinking with community at its core. The facilities provide an opportunity for networking, teamwork and even finding new partners and customers.

The traditional users of coworking facilities have been professionals in the creative industries, information technology workers and startups. They have been accompanied by representatives of larger companies and more traditional industries, espe-cially those seeking flexibility. The company’s space requirements may vary according to a project, or it may have only one employee in a certain locality.

You can work at VAU!HAUS (WOW!HOUSE) at any time of the day, because those who have paid the monthly fee will receive their own pass card. The space is also available for occasional needs such as meetings.

The coworking phenomenon has also landed in NIHAK’s area of operation. In 2018, NIHAK opened the first VAU!HAUS in Nivala and during 2019 Haapajärvi, Kärsämäki, Pyhäjärvi and Reisjärvi have got their own premises.

VAU!HAUS, Haapajärvi, Puistokatu 46VAU!HAUS, Kärsämäki, Frosteruksenkatu 4VAU!HAUS, Nivala, Pajatie 5, Nitek / 2nd floorVAU!HAUS, Pyhäjärvi, Ollintie 17VAU!HAUS, Reisjärvi, Kirkkotie 3A

Want to learn more? Please contact: Tuomas Anttila, Project Manager, 044 4457 007, tuomas.anttila@nihak.fi

• common office space 24/7 • meeting rooms• business development services• printer/scanner • wifi• storage space lockers • coffee room

VAU!HAUS includes:

6

BUSINESS SERVICES–EXPERTS AT YOUR SERVICE IN THE WHOLE AREA

Entrepreneur, you are not alone. Through NIHAK, you get personal consulting, sparring and practical help. Networking with other companies can open new doors.

NIHAK’s Business Services offers the service flexibly across municipal bound-aries. In this way, we can always make the best use of the resources available. Our skilled personnel consult, for ex-ample, on matters related to the es-tablishment or growth of a company and business development. Through regional development projects, com-panies receive comprehensive training, development and research services.

NIHAK has its own business services manager in Kärsämäki, Nivala, Pyhäjärvi and Reisjärvi. In addition, our export experts serve all entrepreneurs in our region throughout the sub-region.

Taking advantage of financing channels Entrepreneurs can apply for funding for investments and operational de-velopment through many different channels. In the application process, it is worthwhile to use the experience of NIHAK’s experts. Together, we figure out from which organization and on what grounds your company would be able to apply for support funding. We also provide practical assistance in preparing application documents.

Ari Alakangasserves NIHAK’s customers as an export expert and provider of inter-nationalization services.

Mr. Alakangas is known as an inno-vative veteran with a background in industrial sales, marketing and international trade.

“Internationalization is a planned process and requires years of footwork.”

phone 040 6846 400ari.alakangas@nihak.fi

Introduction of the Business Service Managers:

Harri Jokela works as the Business Service Manager at the Reisjärvi office.

Mr. Jokela has business-related experience from the perspec-tives of business grants, advice, research and training.

“There is a wide range of advisors going around, but the most impor-tant thing is that your business is unique to you.”

phone 050 304 9317harri.jokela@nihak.fiReisjärventie 8, Reisjärvi85900 Finland

Action Report 7

Business Services

Business idea development

Internationalization services

Core group activities of micro-enterprises

VAU!HAUS coworking facilities

Q

START UPPSTART

€

Business development

Acquisitions and changes of ownership

Communication and information services

Lobbying and influencing

EU business finance services

Area marketing

i

Project development and promotion of cooperation

Arto Junno works as a Business Services Manager in Kärsämäki and Pyhäjärvi.

At NIHAK, Mr. Junno has worked since 2005 as a Contact Manager and in various projects. For the past five years, he has served as a Business Services Manager.

“The company’s main goal is to make a profit. We advise companies on all matters related to legitimate business.”

phone 044 4457 011arto.junno@nihak.fiRannantie 6, Kärsämäki, FinlandAsematie 4 A, Pyhäjärvi, Finland

Marika Kumpula works as a Business Service Manager at the Nivala office.

Ms. Kumpula has extensive experience in working with SMEs and strong expertise, especially in various areas of corporate financial management.

“Every company has its own story and its own challenges. As a team, we are able to provide service for all kinds of needs.”

phone 046 5040 8480marika.kumpula@nihak.fiPajatie 5, Nivala, Finland

WE PAVE THE WAY

Do you dream of entrepreneurship or are you already well on your way? Do you have an idea that you need help taking forward? NIHAK offers help in the first steps of entrepreneur-ship and in the early stages of a new business. Together, we study your business idea and especially the profitability and financing of your idea. This will create a solid foundation for your idea and dream.

Our business services managers will also help you with the actual permit issues, in choosing the company form and in making the incorporation documents.

for a profitable business

Regional Development Services

Business support and financial advice

€

8

PROJECTS ARE A SOURCE OF GROWTH AND DEVELOPMENT

Subcontracting network for mining expertiseEntrepreneurs going forward togetherProcess SMENetXportPro StudioCreative solutionsSolution MillSolo Entre and enterprising culture Sales is a KingKeys of competitiveness BIO value chain analysis Digital Change ManagementThink BigUMBR-ELLADigiprocess

2017 2018 2019 2020 2021

Disabled persons path into work life My WayOulu South Goes Global pre-clarificationNew use for the Pyhäsalmi Mine Callio bioenergy terminalPartnership campus Me3LabStrong structures HybridDevelopment of tourism expertise Virtual ClubDigital factory infrastructureKAIVASUMulti campusCallio Undergroung Rescue Forest owner of tomorrowMy Way 2

2017 2018 2019 2020 2021

NIHAK as the implementer or partial implementer

NIHAK funded

NIHAK’S PROJECTS IN 2019

cooperationTHE POWER FOR

DEVELOPMENT IS FOUND IN

32 MORE INFO ON PAGE16 046 536 €NUMBER OF

PROJECTS TOTAL

BUDGET 22

Through NIHAK, companies have access to numerous regional development pro-jects. They provide tools for developing sales and marketing, training, interna-tionalization or the utilization of digi-talization. What the projects have in common is that they bring new know-how and growth to the entire region.

NIHAK acts as a funder and/or main or partial implementer in projects. Oth-er parties include, for example, other sub-regions, individual municipalities, the University of Oulu or education-al institutions in the area, such as the JEDU Municipal Education and Training Consortium and Centria University of Applied Sciences.

Action Report 9

Today, digitalization affects all compa-nies, regardless of industry. However, its potential could be exploited much more than at present, and companies therefore need more information and training.

The Digital Change Management project helps companies improve work productivity and well-being through digitalization. The target groups are SMEs and micro-enterprises in the Ni-vala-Haapajärvi and Haapavesi-Siika- latva Sub-regions.

“The need for this project has come directly from the companies. Digitali-zation has developed rapidly in recent decades, and there is a lot to be im-proved in companies,” says Markku Mehtälä, Project Manager from NIHAK.

Through the project, companies are offered training, advice and expert ser-vices. Their themes may relate to, for

example, quality, lean management, software, e-commerce or the use of social media in business. Half of the costs of training and expert services will be borne by the participating com-pany or group of companies.

“Companies can utilize the services of others and develop new business. The development of networks further diversifies opportunities. Through the project, companies will also be able to network with each other”, says Mehtälä.

The two-year project will run until the summer of 2021, during which at least 500 training days will be planned. Already in 2019, well over half of the target was met, but there is still time for you to join.

“The companies have given good feedback on the training sessions, and they have been seen as very useful,” Mehtälä says.

Is your company ready for digitalization?

PROJ

ECT

PRES

ENTA

TION

www.nihak.fi/fi/ digimuutoksen-johtaminen

Nivala-Haapajärvi Sub-region NIHAK ry Markku Mehtälä 050 339 7723 markku.mehtala@nihak.fi

Haapavesi-Siikalatva Sub-region federation of municipalities Timo Kähkönen 044 769 2501 timo.kahkonen@siikalatva.fi

10

New Growth from the Bioeconomy

PROJ

ECT

PRES

ENTA

TION

A forest-based bioeconomy is in a key position today when it comes to sustain-able growth. Utilization of wood can already save and replace non-renewable resources in many sectors.

At the end of 2019, the City of Haapajärvi and NIHAK launched a study on how to be involved in the bioeconomy in this area. The project is entitled “Value chain analysis of bi-orefined production and commitment of SMEs in the region”.

The plant planned for Haapajärvi would produce bio-oil from wood bi-omass, ie from logging and harvest-ing residues or sawmill by-products. At the same time, it will be clarified whether valuable parts of the wood can be recovered in connection with bio-oil production and utilized in other industries.

“Bio-oil can be a substitute for fos-sil fuels in various ways. One group of users could be larger building that use oil for heating. Bio-oil can also be utilized in the refining of vehicle fuels,” says Jouni Niskanen, project manager.

By the end of 2020, an assessment will be made of how the plant would be financially and technically feasible. At the same time, it will also be inves-

tigated as to what kinds of business the plant investment could create for companies in the area.

Issues to be clarified also include the product market, the availability of raw materials, the product range and the factory concept, as well as the need of the investments and profitability.

“Our goal is that by the end of the year, we will have a good picture of whether this is the kind of path that is worth taking commercially. Or is it worth taking additional time and spec-ifying other issues,” Niskanen says.

Haapajärvi has already been found to have inherent strengths as a location for the biorefinery in previous studies. Raw material can be found in the area, and there is already wood processing and well-functioning raw material sup-ply chains.

During the study project, close co-operation will be carried out with the local sawmill industry and energy production, as well as SMEs, potential investors and financiers in the area.

“There has been a good reception and interest in the idea in this area. Our wish is that this will provide a working recipe for taking the project forward,” says Niskanen.

Nivala-Haapajärvi Sub-region NIHAK ry Jouni Niskanen 044 0666 730

jouni.niskanen@nihak.fi

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Action Report 11

In what ways can an entrepreneur imp-rove his or her well-being at work? How to create new business around a mine that is closing down? How to reduce the carbon footprint in the manufacture of steel structures?

Answers to such questions, among others, are sought after in the research activities of the Kerttu Saalasti Insti-tute. The Kerttu Saalasti Institute is an international research institute within the University of Oulu. Focusing on micro-enterprises, it is the only one of its kind in Finland and internationally.

”We bring in research-based infor-mation to support the development of micro-enterprises. Practical examples are provided through business net-works. We are currently launching a research-based nationwide micro-entre-preneurship education at the University of Oulu,” says Matti Muhos, Director of the Institute.

At the Kerttu Saalasti Institute, research on micro-entrepreneurship focuses on, among other things, busi-ness growth, internationalization and

Micro-businesses into the spotlight

management, as well as the operating environment and social impact. The research also focuses on entrepreneurial skills, values and motivation, entrepre-neurship education and a culture that supports entrepreneurship.

The institute also has a multidisci-plinary research group on production technologies of the future and a re-search group on regional excellence. The regional research infrastructure is represented by the Micro-Entrepre-neurship Center Micro-ENTRE, the ELME studio focusing on production technologies and the multidisciplinary underground research center CallioLab.

The Institute’s activities are supported by the Kerttu Saalasti Foundation, which was established in 2000 to promote the diversification and competitiveness of the business community in the region of Oulu South and to support the univer-sity’s research and education activities. In addition to the university, munici-palities, sub-regions and educational organizations in the region participate in the Foundation’s activities.

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PART

NER

KERTTU SAALASTI INSTITUTE:

CORE GROUP ACTIVITIES OF MICRO-ENTERPRISES

– INFORMATION, SPARING AND NETWORKS

Almost 95 per cent of Finnish companies are micro-enterprises. It is therefore worth-while looking into how their growth can be promoted and how barriers to entrepreneur-ship can be removed.

The MicroENTRE Center for Micro-Entre-preneurship of the University of Oulu brings researched information to support the development of micro-enterprises and gets companies involved in this research work.

The companies involved in MicroENTRE’s research projects have formed regional business networks, core groups. The core group activities of micro-enterprises offer entrepreneurs peer support, sparring and the opportunity to find new customers and partnerships through networking. NIHAK assembles the business network in its own area and coordinates the core group activi-ties. The business network meets on a rotat-ing basis at the premises of the companies belonging to the core group. Meetings are held monthly in the evening, and the topic is decided by the host company in turn.

You can get involved by registering with the core group coordinator Marika Kumpula:

Phone 046 5040 8480 marika.kumpula@nihak.fi

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12

NUMBER OF COMPANIES AND AMOUNT OF FINANCIAL SUPPORT FOR REGIONAL BUSINESS

YEAR

201

9

Number of business in the registery (situation as of 3 Jan 2020) and new registered companies (2019)

115 km of hiking

trails.

Tea Cup City

Number of lakes 95

Cattle 13 974 head (2018)

Industry & constructionThe main sector of 117 businesses

37,5 % of the 8th and 9th grade students engage in breathtaking exercise in their free time at least 1 hr per week (national avg. 28,3 %)

Over 800 tea cups in collection in the town hall

Reisjärvi225 businesses

+15 new

97,9 % Of the population live in

single family homes or row houses

Peuranpolku

Haapajärvi610 businesses

+26 new

Sources: Statistics Finland 2018, Natural Resources Institute Finland, THL, Nivala business registry, järviwiki.fi

Milk 46 704 328 liters

(2018)

Home of Kyösti Kallio

Nivala757 businesses

+52 new

Action Report 13

NUMBER OF COMPANIES AND AMOUNT OF FINANCIAL SUPPORT FOR REGIONAL BUSINESS

Pyhäjärvi Mine One of Europes deepest know places.

About 5 000 vehicles /day pass the Highway 4

crossroads

2 339 BUSINESSES

+127-117

new businesses

2 million Euros of direct support was granted to businesses in the region, totalling 40 cases.

BREAKDOWN OF SUPPORT RECIPIENTS: Haapajärvi, 7 cases, 195 637 € Kärsämäki, 6 cases, 99 940 €Nivala, 19 cases, 1 282 520 €Pyhäjärvi, 4 cases, 79 223 €Reisjärvi, 4 cases, 341 067 €

businesses quit

+ 10 businesses (net change)

E75

Kärsämäki293 businesses

+11 new

Pyhäjärvi454 businesses

+23 new

Built 2004. About 52 000 shingles

Shingle Church

1 445 meters The mine contains

the world’s deepest underground sauna.

Full moon dance

Nivala

Haapajärvi

Pyhäjärvi

Kärsämäki

Reisjärvi

10 %

9 %

25 %

18 %

POPULATION IN THE NIHAK MUNICIPALITIES Change compared to previous year 2018

Total inhabitants

28 079-93

-1377 012

2 575

5 135

2 718

-112

-37

-24

10 639

14

UNEMPLOYMENT IN THE SUB-REGION 2017–2019 Northern Ostrobothnia NIHAK

38 %

POPULATION STRUCTURE OF AREA 2018

Total population 28 488

Children and pensioners14 481

Employment age 14 007

Outside of labor force2 703

Labor force 11 304

Employed 10 280

Unemployed1 024

Companies7 048

Public sector3 232

15 %

11,25 %

7,5 %

20182017 2019

10,8 %

9,5 %

Action Report 15

Travelling upstream Anna Luomajärvi is a 22-year-old ar-tisan with a free spirit. Unlike many of her peers, she has moved from south to north and ended up as an entrepreneur in Reisjärvi.

“I personally see that this area has a lot to offer even a young person. I’ve tried to set an example to lower the threshold for entrepreneurship. I have talked about it to school children. And there are a lot of young entrepreneurs here,” Ms. Luomajärvi says.

As for her roots, Luomajärvi is the daughter of a farmer in Kuru, Pirkan-maa. She attended high school in Par-kano, from where she went on a youth exchange to the United States returned and continued to study in Raahe. She also lived in Kauhava for a while.

Along the way, a spouse was found next door in Reisjärvi. When a succes-sor was needed on his parents’ dairy

farm, the direction of the young couple was clear.

Before moving, Luomajärvi did not know much about Reisjärvi. Of course, life in a small place had been familiar.

“I appreciate my own peace, but also the fact that people know each other. Here you are cared for differently than in the big city, and a new person is happy to be counseled.”

Luomajärvi has always wanted to be an entrepreneur, and in Reisjärvi the idea started to catch fire. Harri Jokela, NIHAK’s Business Servic-es Manager, was an important help in the company’s founding phase.

“I’ve received competent and flexible service from the business service. I also feel that the new entrepreneur has been well received here,” Luomajärvi states.

Founded in the spring of 2019, Anna’s Boutique offers, among other

things, gifts, products, clothes and books. There is also a café under the shelter of the boutique, where you can get coffee and home-made pastries. Lunch is served three times a week.

Unlike Luomajärvi’s former residences, Reisjärvi is located far from larger popu-lated centers. However, it does not bother the entrepreneur. Passers-by and cottag-ers complete the customer base, and the hustle and bustle of the cities can be seen, for example, during trade fair trips.

In the current hometown, on the oth-er hand, you will find something that oth-ers wish for from afar: clean nature and good hiking terrain. Luomajärvi would take her guests to at least the Peura trail.

“Many also find it interesting to see the life of a small locality and tradi-tional occupations such as farming. In metropolitan centers, the offering is the same everywhere.”

THE

STOR

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A M

OVER

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Encounters, contacts and new customers at the Business Chats During 2019, NIHAK organized BusinessMaker’s Business Chats in May in Nivala and in December in Haapajärvi. The purpose of the event is to help companies find the right contacts for their own needs: customers, partners, subcontractors, financiers, recruitment assistance, cooperation between educational institutions, infor-mation about various projects or contacts with business experts.

Events all around the year

Job days bring students and businesses together The Job Days of the University of Oulu is a meeting place for working life and students, where employers get in touch with new potential employees and students have the opportunity to find employment in their own field or get thesis topics.

At the 2019 Job Days, NIHAK, together with the local sub-regions and municipalities, was presenting the com-panies’ labor and thesis needs. The theme was “Work for Doers”.

“As a whole, the Job Days were a good experience. There were a lot of visitors, and interesting discussions took place during the day,” says Harri Jokela, Business Services Manager, who acted as NIHAK’s contact person.

Haapajärvi Business Chat attracted more than 60 participants. Olli Ojamo from Eumer Finland Oy,

who was chosen as Finland’s happiest entrepreneur, offered inspiration with his own story.

Entrepreneur’s coffee

Entrepreneur’s coffee

Business chats

Kv-Café

Job days

Business chats

Entrepreneur’s coffee

Kv-Café

Kerttu Saalasti seminar

Match & Rekry

The future of production technology day

DEVELOPMENT PROJECTS 33 EVENTS TO WHICH

COMPANIES PARTICIPATED 271EVENTS251

SUMMER

SPRINGWINTER

AUTU

MN

Year Clock

Micro core group

Micro core group

EVEN

TS 2

019

www.nihak.fi/tapahtumat

Micro core group

Kv-CaféKv-Café

Micro core group

Action Report 17

THE SITUATION OF BUSINESS LIFE

The unemployment rate in the region remained at a reasonable level, averag-ing 8.2% in 2019 (8.4% in 2018). This was 1.9% lower than the average unem-ployment rate (10.1%) in the whole of Northern Ostrobothnia. During 2019, a total of 127 new companies were es-tablished in the region. There is a total of 2,339 companies in the area.

The region’s challenge remains the negative trend of the population and the demographic structure of the region. The population of the region decreased by 403 inhabitants during 2019, of which about a quarter is due to natu-ral demographic development (births – deaths) and the rest was caused by migration. In addition to the declining population, an additional challenge is the age structure of the region, where the share of working-age people is low-er than average. If the trend in demo-graphic development remains similar in the future, it will pose an increasing challenge to business development, with the availability of skilled labor becoming a bottleneck for business growth. A special challenge for Pyhä-järvi is the structural change caused by the closing of mining operations at the Pyhäsalmi Mine in the near future. The different possibilities for the reuse of the mine were also actively pursued

during 2019 with various projects. One of the major development targets was the development of an underground learning environment for shaft and tunnel rescue (Callio Underground Rescue project.)

The amount of direct investment grants granted to companies in the re-gion remained at a good level. A total of 40 grants were awarded for a total of EUR 2 million.

In Reisjärvi, the most significant investments were Änäkkälän Teräs Oy’s investments in production ma-chinery and Ny-tek Oy’s investments in production development and inter-nationalization.

The most significant investments in Kärsämäki were the construction of Nelostien Korjaamo Oy’s heavy equip-ment service and repair facilities and a spare parts store, the expansion of the shopping center (Juustoportti) property and the construction of Eurofinns Nab Labs Oy’s premises.

In Pyhäjärvi, investments included NC-Taso Oy’s investments in machinery and equipment, as well as the expansion of Arjen Avuxi Oy’s operations and investments in laundry services. Several changes of ownership were also made in Pyhäjärvi and new entrepreneurs entered the service sector.

In Haapajärvi, the construction of the storage areas of the Finnish Defense Forces’ Material Depot is underway. The cost of the investment is broken down into periods of several years and is quite significant. New production facilities were completed for Selänte Peltituote, and at the beginning of the year JR-Kaluste also moved into new, larger premises and also invested in ma-chinery and equipment. In Haapajärvi, the construction in the (sote) social and health care sector has been brisk in recent years, and another new service unit was taken into operation last year.

In Nivala, as in the previous year, companies in the metal products in-dustry were active in their investments. Mecapinta Oy invested in a new ano-dizing line, LaserComp Oy introduced a new laser line, Hero Mechanics Oy acquired new premises at the begin-ning of the year and invested in new machines, ProMechanics Oy moved to new premises and carried out ma-chine investments in April. A new and interesting startup was Natural Indigo Finland Oy, which operates in Nivala and started the production and com-mercialization of indigo natural paint for international textile brands seeking organic industrial textile dyeing.

The economic activity in the Nivala-Haapajärvi region was good in 2019. Many companies invested and sought growth.

18

FINANCE 

Funding for NIHAK’s operations consists of membership fees paid by member municipalities for regional development and fees invoiced separately for the provision of business services.

The association’s financial result for the fi-nancial period 1 January to 31 December 2019 was EUR 57,852.78 in deficit. The association’s balance sheet total was EUR 821,917.07 and shareholders’ equity at the end of the financial year was EUR 431,943.54. Due to changes in the method of bookkeeping, the financial statements are not fully comparable with pre-vious years.

No significant changes are expected to take place in the association’s operations and fi-nances during 2020.

PROJECT FINANCING

The aim of project financing is to cover the costs of development projects produced by region-al development services primarily with pub-lic project funding provided by the EU, which is supplemented by the regional association’s self-financing contributions.

Development projects are an important part of regional development activities, where the “leverage effect” of own financing can be sig-nificantly utilized for the benefit of the region.

Municipal co-financing of regional devel-opment collected through membership fees is channeled by the regional board, for which funding proposals can be made on the principle of application with no deadline. In 2019, the membership fee was collected from the munici-palities in the area at € 15.50 / inhabitant / year.

The Regional Board convened 8 times dur-ing 2019.

FINANCE AND ADMINISTRATION

30.10.2019–

Board members (full)

Juha Uusivirta, Haapajärvi

Mauri Tenkula, Haapajärvi

Esa Jussila, Kärsämäki

Esko Ristinen, Kärsämäki

Päivi Karikumpu, vice chairman, Nivala

Jarmo Vuolteenaho, Nivala

Henrik Kiviniemi, chairman, Pyhäjärvi

Jukka Tikanmäki, Pyhäjärvi

Marjut Silvast, Reisjärvi

Jouni Tilli, Reisjärvi

REGIONAL BOARD MEMBERS 2019

30.10.2019–

Deputy membersTeija Myllylä, Haapajärvi

Maritta Niska, Haapajärvi

Pekka Anttila, Kärsämäki

Mika Autio, Kärsämäki

Liisa Hankonen, Nivala

Jarmo Pihlajaniemi, Nivala

Jukka Lehtosaari, Pyhäjärvi

Asko Kauranen, Pyhäjärvi

Sami Puputti, Reisjärvi

Antti Vedenpää, Reisjärvi

1.1. –29.10.2019

Board members (full) Juha Uusivirta, Haapajärvi

Mauri Tenkula, Haapajärvi

Esa Jussila, Kärsämäki

Esko Ristinen, Kärsämäki

Päivi Karikumpu, Nivala

Leena Vähäsöyrinki, Nivala

Henrik Kiviniemi, vice chairman, Pyhäjärvi

Jukka Tikanmäki, Pyhäjärvi

Raija Potila, chairman, Reisjärvi

Jouni Tilli, Reisjärvi

1.1. –29.10.2019

Deputy membersTeija Myllylä, Haapajärvi

Maritta Niska, Haapajärvi

Pekka Anttila, Kärsämäki

Mika Autio, Kärsämäki

Jarmo Vuolteenaho, Nivala

Eija-Riitta Niinikoski, Nivala

Jukka Lehtosaari, Pyhäjärvi

Asko Kauranen, Pyhäjärvi

Marjut Silvast, Reisjärvi

Antti Vedenpää, Reisjärvi

Action Report 19

Anne-Mari KukkolaFinance Manager

Phone: 044 445 7002

Jenni JuolaProject Secretary

Phone: 050 462 3356

Harri JokelaBusiness Service Manager

Phone: 050 304 9317

Toni Krankkala CEO

Phone: 050 327 7254

Arto JunnoBusiness Service Manager

Phone: 044 445 7011

Marika KumpulaBusiness Service Manager

Phone: 046 5040 8480

Ari AlakangasExport Expert

Phone: 040 684 6400

Markku MehtäläProject Manager

Phone: 050 339 7723

Sami KaartoOffice Manager

Phone: 044 274 8827

Tuomas AnttilaProject Manager

Phone: 044 445 7007

Timo LiimatainenProject Manager

Phone: 044 445 7001

Jouni Niskanen Project Manager

Phone: 044 0666 730

Nivala-Haapajärvi Sub-region NIHAK ryfirstname.lastname@nihak.fi

Staff

1.1. –29.10.2019

Deputy membersTeija Myllylä, Haapajärvi

Maritta Niska, Haapajärvi

Pekka Anttila, Kärsämäki

Mika Autio, Kärsämäki

Jarmo Vuolteenaho, Nivala

Eija-Riitta Niinikoski, Nivala

Jukka Lehtosaari, Pyhäjärvi

Asko Kauranen, Pyhäjärvi

Marjut Silvast, Reisjärvi

Antti Vedenpää, Reisjärvi

20

The TOP8 municipalities that people move to from the NIHAK area. % of the total amount (approx. 1 296 persons)

Oulu 15,2 %

Ylivieska 11,3 %

Kokkola 3,6 %

Jyväskylä 3,5 %

Tampere 3,2 %

Helsinki 2,9 %

Kuopio 2,7 %

Pihtipudas 2,6 %

Ylivieska 8,4 %

Oulu 8,3 %

Helsinki 4,1 %

Haapavesi 3,6 %

Pihtipudas 3,4 %

Jyväskylä 2,4 %

Vantaa 2,3 %

Sievi 2,1 %

The People are going to Oulu

Of the five municipalities in the Nivala Haapajärvi Sub-region, migration is directed to Oulu. Statistics on internal migration from 1990 to 2018, published by Statistics Finland, show that 3,953 people moved to Oulu from the region. Correspondingly, 2,261 people moved from Oulu to the region. The loss of popu-lation due to people moving to Oulu over a 29-year period is 1,692 people.

Of the people who moved out from the municipalities of the NIHAK area, 2,895 went to Ylivieska, 1,799 to Helsinki, 1,672 to Jyväskylä, 1,089 to Kokkola, 1,026 to Tampere, 974 to Kuopio and 969 to Haapavesi.

After Oulu, the second largest number of new residents in the area came from Ylivieska, 1,814. 1,199 people moved from Helsinki to the area, 1,009 from Haapav-esi, 726 from Jyväskylä, 679 from Kokko-la, 674 from Sievi and 557 from Kuopio.

In 29 years, 35,281 people have moved out of the Nivala-Haapajärvi Sub-region and 26,901 new residents have arrived. The loss due to migration is 8,380.

The TOP8 municipalities from where people movedto the NIHAK area. % of the total amount (approx 969 persons)

MIGRATION IN THE NIHAK AREA 1990–2018

Migration out of the area in 2018

Migration into the area in 2018

Action Report 21

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The TOP8 municipalities that people move to from the NIHAK area 1990–2018 % of the total amount (approx. 35 281 persons) (Source: Statistics Finland PxWebdatabase)

NIVALAKÄRSÄMÄKI

PYHÄJÄRVI

HAAPAJÄRVI

REISJÄRVI

759 KPL

+50

603 KPL

+26

295 KPL

+18

450 KPL

+22 222 KPL

+16

Nivala

Haapajärvi

Pyhäjärvi

JYVÄSKYLÄ KOKKOLA

8,2 %

4,7 % 3,1 %

YLIVIESKA

11,2 %OULU

HELSINKI

5,1 %

2,9 %

TAMPERE

2,8 %

HAAPAVESI2,7 %

KUOPIONIHAK

NIVALAKÄRSÄMÄKI

PYHÄJÄRVI

HAAPAJÄRVI

REISJÄRVI

759 KPL

+50

603 KPL

+26

295 KPL

+18

450 KPL

+22 222 KPL

+16

Nivala

Haapajärvi

Pyhäjärvi

HAAPAVESI

6,7 %

3,8 % 2,7 %

YLIVIESKA

8,4 %OULU

HELSINKI

4,5 %

2,5 %

KOKKOLA

2,5 %

KUOPIO2,1 %

SIEVINIHAK

The TOP8 municipalities from where people moved to the NIHAK area 1990–2018 % of the total amount (approx. 26 901 persons) (Source: Statistics Finland PxWeb-database)

JYVÄSKYLÄ

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PROJECTS 2019

Development of the network of mining subcontracting companiesThe aim is to establish a cluster of the network of mining expertise subcon-tracting companies and enable the network to continue operating and to develop mutual co-operation between different operators.

Entrepreneurs going forward together The project promotes the growth and profitability of companies in the region through joint events and marketing and promotes the region’s attractiveness.

Business Model Innovation and Internationalization of Process Industry SMEsThe Process-SME project improves the competitiveness of SMEs in the process industry, supports them in business development and helps them in partic-ipating in international projects.

NetXport – together into the worldThe aim is to support the preconditions for the international growth of value networks by acquiring knowledge and skills that support profitable growth as purchased services from experts, and to identify new value chains regardless of industries and to support value-added consortiums.

Pro StudioThe aim is to get people planning business activities in NIHAK’s area of operation to “spar” their business ideas in the Pro studio environment and to increase new skills and information in the region and to contribute to the development of new services.

Creative solutionsAims to promote the growth of creative industries by increasing commerciali-zation and business expertise.

Establishment of the Solution Mill Accelerator in the Oulu South and Raahe Sub-Region. Create the tools for the offering of common business services in the sub-regions and to raise operations to a practical level, and to develop the Solution Mill Accelerator for growth companies.

SoloENTRE and Entrepreneurial CultureIn co-operation with sole proprietor-ships and micro-entrepreneurs, busi-ness service organizations and research actors, a new type of micro-entrepre-neurship service package will be built, with which we will introduce new op-portunities for the growth, employment and export of sole proprietors.

Sales is a King Aiming for a positive push in sales de-velopment at the company, business developer and educational institution level. Business models and processes are updated and cooperation and net-working between companies, training and development organizations are promoted.

The keys to competitivenessHelping companies locate factors rele-vant to competitiveness in the entire area of operations, from customer co-operation to design, manufacturing and the delivery process.

Value chain analysis of biorefined production in Haapajärvi and the involvement of SMEs in the region From the viewpoint of the regional economy, the value chain analysis de-scribes and evaluates a plant project aiming at bio-oil production from wood biomass (harvest and harvest residues, sawmill by-products, energy wood-type biomass) and the related production of highly processed bioproducts from wood extracts.

Digital Change ManagementThe aim is to simultaneously improve labor productivity and well-being at work in small and micro enterprises through digitalization.

Think Big – Think Global – Going into the worldIdentifying and activating opportunities for international business in the region’s companies, diversifying the region’s export companies and export prod-uct base, and highlighting previously unidentified or untapped potential.

UMBR-ELLA (Universal Model Boost-ing Resilience – Entrepreneurial Learn-ing Lab Abroad) Provides local entrepre-neurs with growth opportunities abroad by promoting resilience in both national and international connections. Devel-oping resilience increases well-being, innovation and performance and can also deliver faster and more effective results.

Digital ProcessThe aim is to support the digital matu-rity of SMEs, the production of digital services, and the digital ecosystems formed by SMEs and industry.

Action Report 23

NIHAK implementer or partial implementer

Project name Project Period Budjet

1 Mining expertise subcontracting network 15.9.2018–30.4.2019 55 000 €

2 Entrepreneurs going forward together 1.8.2015–31.7.2019 129 606 €

3 Process SME 1.9.2016–31.8.2019 665 032 €

4 NetXport 1.10.2017–31.10.2019 248 388 €

5 Pro Studio 1.9.2017–31.12.2019 35 200 €

6 Creative Solutions 1.8.2017–31.1.2020 422 566 €

7 Solution Mill 1.7.2018–30.9.2020 235 408 €

8 Solo Entre and Enterprising culture 1.9.2016–31.12.2020 967 081 €

9 Sales is a King 1.1.2018–31.12.2020 622 520 €

10 The keys of Competitiveness 1.9.2018–31.12.2020 519 032 €

11 BIO Value Chain Analysis 1.9.2019–31.12.2020 220 000 €

12 Digital Change Management 1.3.2019–30.06.2021 434 000 €

13 Think Big 1.10.2019–31.12.2021 499 789 €

14 UMBR-ELLA 1.12.2019–31.12.2021 252 000 €

15 Digiprocess 1.10.2019–30.9.2022 1 825 621 €

7 131 243 €

NIHAK financed

Project name Project Period Budjet

16 KELPO – Disabled persons path into work life 1.3.2016–28.2.2019 338 299 €

17 My Way 1.1.2017–28.2.2019 281 125 €

18 Oulu South Goes Global pre-clarification 1.12.2018–30.4.2019 40 000 €

19 Reuse of the Pyhäsalmi Mine 2.1.2017–30.6.2019 483 540 €

20 Callio bio energy terminal 1.8.2018–31.7.2019 29 433 €

21 Partnership campus 1.11.2016–30.11.2019 374 104 €

22 Me3Lab 1.1.2016–31.12.2019 1 533 000 €

23 Strong structures 1.9.2018–31.8.2020 900 000 €

24 Hybrid 1.1.2018–31.12.2020 745 926 €

25 Developing tourism expertise 1.1.2018–31.12.2020 360 380 €

26 Virtual Club 1.3.2019–28.2.2021 365 409 €

27 Digital factory infrastructure 1.6.2019–30.6.2021 796 850 €

28 KAIVASU 1.4.2019–31.8.2021 841 320 €

29 Multi Campus 1.6.2019–31.10.2021 361 398 €

30 Callio Undergroung Rescue 1.1.2019–31.12.2021 739 288 €

31 Forest owners of the future 1.10.2019–31.12.2021 201 920 €

32 My Way 2 1.4.2019–31.3.2022 523 301 €

8 915 293 €

Total budget of projects 16 046 536 €

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