Latvia's mechanical engineering and metalworking industry is strengthening its positions in the Swedish market
Latvia's mechanical engineering and metalworking industry is one of the country's leading industrial sectors, with a powerful focus on exports and many years of experience in Scandinavian countries, including Sweden. Latvian companies can offer modern solutions to this demanding market, ranging from process automation and complex equipment design to non-standard solutions in the military sector.
The industry is of vital strategic importance to the Latvian economy – it makes up about 20% of total manufacturing turnover and produces 23% of the country's exports. Although its products are supplied to over 100 countries around the world, more than 70% of exports end up in the European Union. Last year, Sweden was Latvia's fourth biggest Latvia's metalworking and mechanical engineering export partner.
Latvian businesses report that in order to be competitive in the Swedish market, companies must be able to offer a mix of experience, quality and the ability to flexibly adapt to customer requirements. Latvia's close geographical proximity to Sweden is an advantage, as are expertise in niche projects and a long-term culture of cooperation, which is highly appreciated in Scandinavia. Māris Bumbieris, Managing Director of Iekārtu rūpnīca, a non-standard metal products manufacturer that is a subsidiary of the Latvijas finieris conglomerate, stresses that, “The main trends currently affecting the industry as a whole, as well as our company, are linked to the broader implementation of automation and digital solutions. We've been collaborating with Scandinavian companies for almost 20 years now and have proven our credentials as a stable cooperation partner. We can provide services at all stages – from design and manufacturing through to delivery and assembly. Some customers choose us as a subcontractor, whereas others seek us out as a creator of new solutions enhanced by our team of designers.”
Engineering, manufacturing and assembly service provider Ercon stresses that a significant advantage lies in the ability to offer a competitive price-quality ratio. “Our main sales markets are in Scandinavia. In Sweden it is evident that metalworking is becoming less popular, because it is viewed as a heavy and dirty industry. Our advantage lies in our strong technical base that enables us to implement projects of various scales and our highly qualified specialists. Approximately half of our orders are comprised of customized solutions, and our customers represent a wide range of industries, ranging from mining and agriculture to woodworking,” says Ercon Board Member Andris Baltausis.
According to Matīss Irbe, founder of the engineering company Design Tree, growth opportunities are closely connected to the development of automation and digitalization, as well as the availability of labour. Design Tree specializes in the design and manufacture of non-standard production equipment, providing a full service cycle – from the initial concept through to a ready-made solution and testing. “Businesses are increasingly seeking technologies that enable them to hire people with no specific prior knowledge. Our strength lies in creating solutions that are not available on the market in a ready-made form. Each project is customized to meet the client’s needs,” explains Irbe.
Besides automation, the industry is also being significantly impacted by sustainability and energy efficiency requirements, which are extremely important to Swedish companies. In this regard, Latvian manufacturers can offer solutions with lower energy consumption and material savings, thus helping partners to achieve their sustainability goals.
Latvian mechanical engineering and metalworking businesses have been taking part in the Swedish Elmia Subcontractor trade fair for over 20 years. At this year's fair, from November 11 to 13, a number of them will be represented at the national stand in Hall A 08:42 in Jönköping. The companies participating will be AB Metal, Design Tree, EHT Fabrik, Exigum, Metkon, Plasta, Proring Latvia, SFM Latvia and Silmor.