Industry · municipality
Electronics Sector in Vågan: Current Status and Future Prospects
An analysis of the industry, companies, and development in the municipality
Brief overview of the electronics sector in Vågan
The electronics sector in Vågan is a small but active industry with two registered companies. The industry has been marked by variations in sales and employees over time, with a stable number of employees of around 19 in 2024. The two main companies, Elkjøp Svolvær As and Lofoten Elektromarked As, operate in Svolvær, which is the only location in the municipality with activity within this industry. Prospects for new players are mixed, with both opportunities and challenges linked to market dynamics.
Economic overview of the industry
Sales and employee development
Sales for the electronics sector in Vågan have been uneven over time, with a decline of -5% in 2024 compared to 2023. The highest sales figures were recorded in 2019 (NOK 57.5M), while the lowest were recorded in 2021 (NOK 42.8M).
Employees have been more stable, with an average of around 19 over the last five years. A significant increase was recorded from 2020 to 2022 (+33.3%), but a decline occurred in 2023 and 2024.
Key indicators
- EBITDA margin: -1% in 2024 (negative result)
- Gross margin: 18% in 2024
- Operating margin: -2% in 2024
Companies in the industry
Registered companies
| Company | Incorporation Year | Number of Employees | Organizational Form | Address | Bankrupt? |
|---|---|---|---|---|---|
| Elkjøp Svolvær As | 1983 | 11 | AS | Sivert Nilsens gate 35, Svolvær | No |
| Lofoten Elektromarked As | 2021 | 8 | AS | Lofotgata 33, Svolvær | No |
Organizational form
- AS (Limited company): 2 companies, 19 employees in total
- No companies in other organizational forms (e.g. Sole proprietorship, BOL, etc.)
Business geography
Geographic distribution
- Svolvær is the only location in Vågan with activity within the electronics sector, with 2 companies and 19 employees.
- Sivert Nilsens gate 35 and Lofotgata 33 are the two main locations.
- There is no activity in other districts or small towns in the municipality.
Operational capability and dynamics
Operational dynamics
- Bankruptcy safety: No companies in the industry have been registered as bankrupt during the period 2016–2024.
- Lofoten Elektromarked As has 0 sales and 0 income in all reported years, which may indicate uncertain operations or a new start.
- Elkjøp Svolvær As has a negative EBITDA (NOK -515.0K) in 2024, but is still operational with 11 employees.
Outlook for new players
Outlook for entrepreneurs
- Stable employee numbers: With around 19 employees in 2024, it may be possible to find a place in the market, especially in Svolvær.
- Competitiveness: There are only two companies in the industry, which may provide opportunities for new players with differentiated offerings.
- Challenges: Low EBITDA margin and negative operating result for Elkjøp Svolvær As may be a warning for new entrepreneurs.
- SmartGrunder can help entrepreneurs find suitable locations in Vågan for the electronics sector, based on market needs and potential development opportunities.
Comparison with agriculture
- Number of companies: Agriculture has 6 companies in Vågan, while the electronics sector has 2 companies.
- Sales: Agriculture had NOK 54.6M in 2024, while the electronics sector had NOK 41.3M. This shows that agriculture is a larger sector in the municipality.
- Employees: Agriculture had 29 employees in 2024, while the electronics sector had 19 employees. This shows that agriculture is more labor-intensive.
- Peer companies in agriculture: Examples include Lofoten Synssenter As (optician shop) and Nilssen Valhallmc (telephone shop), which have different operational structures and income levels.
Other companies in landbruk (not in electronics store)
| Company | Industry | Address | Sales | Employees | EBITDA |
|---|---|---|---|---|---|
| Lofoten Synssenter As | optical store | Vestfjordgata 17, 8300 Svolvær | NOK 13.3M | 9 | NOK 1.5M |
| Nilssen Valhallmc | phone store | Barstrandveien 778, 8314 Gimsøysand | NOK 0 | 0 | NOK 0 |
| Nilssen Valhallmc | phone store | Barstrandveien 778, 8314 Gimsøysand | NOK 0 | 0 | NOK 0 |
| Scan Import Shaun Clarke | audio equipment / musical instruments store | Nybyveien 16, 8300 Svolvær | NOK 0 | 0 | NOK 0 |
Conclusion
The electronics sector in Vågan is a small but active industry with potential for development. With two companies and a stable number of employees, it may be possible to find a place in the market, especially in Svolvær. Prospects are mixed, with both opportunities and challenges linked to operating results and competitiveness. Entrepreneurs should consider contacting SmartGrunder to explore potential locations and strategies in the municipality.