Interview with Jason Turflinger, Managing Director, American Chamber of Commerce in Norway

22 Mar Interview with Jason Turflinger, Managing Director, American Chamber of Commerce in Norway

Business Focus (BF): What major challenges does Norway currently face in terms of developing its major industries and economy?

Jason Turflinger: Norway’s economy is predominantly based on natural resources, which are subject to fluctuations in cost. Our sense of urgency often aligns with resource prices that we cannot control. Despite this, we have burgeoning innovative industries. Currency fluctuations such as the weakening Norwegian krone against the US dollar impact various sectors from heavy industry to tourism and student exchange.

The prime minister is striving to navigate these challenges, although the government’s extent of influence remains uncertain. While we anticipate a challenging road ahead for certain industries, Norway has weathered storms before. Nevertheless, the current landscape presents greater obstacles for new ventures compared to a few years ago.

The adoption of artificial intelligence has been a major focus recently. Norway is known for its early adoption of technology, which is evident in the high popularity of Tesla electric vehicles. However, local manufacturing remains a challenge. While the government tends to favor specific technologies, initiatives like the US’ Inflation Reduction Act offer tax incentives without choosing winners. With a population comparable to a small US state, Norway must prioritize its focus areas.

Our strengths in supporting the world’s energy transition also stand out as key competitive advantages.

BF: What substantial contributions have US companies made to the Norwegian economy?

Jason Turflinger: ConocoPhillips is the last man standing among US oil majors in Norway and will be here indefinitely. Their investment in the Ekofisk oil and gas fields demonstrates their long-term commitment to the Norwegian continental shelf.

Referring to companies like Schlumberger and Baker Hughes solely as oil services firms is outdated. Their scope extends beyond traditional oil service companies to emerging technological fields such as green hydrogen. Many innovative projects originate from their Norwegian subsidiaries, and this trend is expected to persist, particularly in the energy sector.

Outside of the energy segment, technology, healthcare, food and beverage and finance are significant sectors with a strong US-Norway presence. Healthcare holds promise as a key sector for Norway’s future industrial development, albeit with market access and tendering challenges. Garnering increased investment from US headquarters may pose difficulties, particularly in the healthcare realm, although progress is being made. Efforts by the trade minister and others aim to improve conditions for industrial growth.

In the tech sector, prominent US brands enjoy a substantial market share, with localization efforts tailored to Norwegian needs. Data protection is paramount, reflecting not only Norway’s concerns but also broader European and global priorities. Companies operating in Norway adapt their business approaches to suit local market nuances rather than adopting a one-size-fits-all strategy.

BF: How have recent US politics impacted relations between Norway and the USA?

Jason Turflinger: The US’ Inflation Reduction Act has had a significant impact here. However, it is still viewed skeptically by some in Norway as a strategy to lure Norwegian companies to the US market. The challenge revolves around ownership and employment. President Joe Biden’s approach resonates well with Norwegians who closely follow US politics, particularly in light of the upcoming elections.

Despite high interest, we aim to maintain focus and not let US politics dominate our agenda. However, there is a genuine apprehension about the implications of another Trump presidency, which has prompted contingency planning. It is crucial for American voters — including expatriates like myself — to consider transatlantic ties when casting ballots.

Representatives from the Biden administration such as United States Special Presidential Envoy for Climate John Kerry have facilitated smoother USA-Norway relations, a development that was not always guaranteed.

BF: What kind of advantages does Norway offer to US companies versus other neighboring markets?

Jason Turflinger: Most of the American companies we collaborate with operate in developed countries, with differing presences within each market. These range from small offices, manufacturing sites, sales and marketing offices to research and development facilities. Many American firms recognize Norway’s competitive advantages such as our proven track record of acquiring and revitalizing facilities that would otherwise close.

Companies need to assess their footprint and their potential in every market, particularly in the Nordic region. Why choose Finland or Sweden when Norway offers distinct advantages? While Norway is not a low-cost market, its skilled and knowledgeable workforce is second to none.

The leading growth potential industries in Norway include healthcare, artificial intelligence, and renewables. We are heavily aligned with the green energy transition. Numerous promising small and medium-sized companies also offer significant potential in the healthcare sector.

Additionally, our members recognize the presence of innovative Norwegian technology firms in artificial intelligence. In Norway, many talented individuals with experience at large international companies pursue independent ventures, which has led to the emergence of remarkable products and services from a variety of companies.

BF: What role does AmCham Norway play in the country’s business landscape?

Jason Turflinger: AmCham Norway has a rich history spanning either 65 or 25 years depending on one’s interpretation. Initially known as the American Club, it primarily consisted of American businesspeople overseeing American subsidiaries in Norway. However, as the landscape of American business evolved, so did our organization.

Today, we represent a diverse membership comprising 50% American, 40% Norwegian and 10% third-country companies that are all interconnected by transatlantic operations. Our mission is to facilitate transatlantic business and prioritize the interests of our 240 member

companies, which range from small ventures to giants like Equinor and ExxonMobil and span across 21 industries. Over the years, our focus has shifted from the oil and gas industry to broader sectors such as energy, healthcare, technology, and food and beverage. Our vision is to foster Norwegian-American business relations by supporting American companies in Norway and vice versa.

We aim to streamline processes, address challenges, and capitalize on opportunities for our members on both sides of the Atlantic.

BF: What role does AmCham Norway play in advocating for local policies that facilitate trade and investment?

Jason Turflinger: We work to bridge the gap between policymakers’ perceptions and the reality of business operations. We prioritize informed dialogue that moves beyond media narratives to address pertinent issues. We advocate for transatlantic and American companies by highlighting their contributions in terms of employment and tax revenue.

For example, a company such as Norsk Hydro alone employs 6,000 people in the USA. These types of ventures underline Norway’s growing significance in terms of employment in the US market. Similarly, Norwegians often reference the sovereign wealth fund’s investments in the US, which now owns 1.52% of all publicly listed companies and is invested in over 3,000 companies.

BF: Why do you believe international companies and investors should look to Norway? 

Jason Turflinger: While the American Chamber of Commerce does not actively promote Norway as a destination for investments – considering our members have already decided to invest here –  it’s important to acknowledge that Norway is known for its trustworthiness and work-life balance, making it an attractive place for business. The country values honesty and straightforwardness in business dealings. Norwegians often surprise American counterparts with their openness during negotiations.

While Norway excels in innovation and research and development, there remains untapped potential due to challenges in marketing and sales expertise. And this is area where international know-how could add a lot of value.