Association of Mechanical Engineering and Metalworking Industries of Latvia MASOC Association of Mechanical Engineering and Metalworking Industries

Association of Mechanical Engineering and Metalworking Industries of Latvia

www.masoc.lv

MASOCAssociation of Mechanical Engineering and

Metalworking Industries of Latvia

September 2014


www.masoc.lv

MASOC – Association of Mechanical Engineering and Metalworking Industries of Latvia

• Established in 1994 as informative and consultative centre for the specified industrial sector

• Voluntary, membership based organisation

• Unites about 150 leading sector enterprises

• Member companies produce over 70% of the sector’s total output, over 50% of sector’s employment

• Implements activities typical for trade associations and cluster organisations

• The main goals:– To promote the competitiveness

and growth of the sector;– To promote mutual cooperation– To promote professional growth of

the specialists in the sector


www.masoc.lv

MASOC – members’ profile

METALS METAL PRODUCTS

MACHINERY ELECTRICAL EQUIPMENT

TRANSPORT VEHICLES

Design and prototyping

Testing and certification

Specialised services

Material suppliers

Materials recovery

Suppliers of equipment

Education

Research

• The core group of companies cover various subsectors of metalworking and engineering (NACE 24, 25, 27, 28, 29 and 30)

• Besides manufacturing companies, related organisations and service providers are included as well, covering the whole value creation chain.


www.masoc.lv

MASOC – member companies

Number of Member Companies Size of Member Companies (persons employed)


www.masoc.lv

MASOC - main activities

Representation of interests

Networking / Co-operation

Education & HR development

MarketingInternational co-operation

Information

Joint project development


www.masoc.lv

MASOC – what we offer

• Information– About the sector– On available technologies and

competences of the member companies

– Online database of companies• Partner search

– Partners for subcontracting, joint production, cooperation projects

• Single contact point• Development of joint projects

– Clustering activities; marketing and export promotion; HR development; education & research


www.masoc.lv

Tech Industry – platform for international co-operation

Riga, 4-6.December 2014

• Exhibition• Matchmaking event• Seminars and conferences• Participants, visitors and delegations form Baltic Countries, CIS, Nordic countries,

Eastern, Central and Western Europe• Organised by exhibition company BT1 in cooperation with MASOC

Biggest industrial exhibition in the Baltic Region

www. techindustry.lv


www.masoc.lv

Development of Mechanical engineering and metalworking

sector in Latvia


www.masoc.lv

Mechanical engineering and metalworking sector in Latvia

• One of the biggest manufacturing sectors in Latvia:– Accounts for more than 20% of

the total manufacturing output and value added (2013)

– Second biggest exporting sector in 2013 (accounts for more than 25% of Latvian exports of goods)

• Exports over 70% of the output• One of the fastest growing sectors

in Latvia – both before and after crisis in 2009.

• Covers NACE 24, 25, 27, 28, 29, 30


www.masoc.lv

Structure of manufacturing industry in Latvia, (% of total manufacturing, 2013)

2

3

4

6

6

4

5

25

24

20

2

4

4

4

5

6

7

15

28

25

0 5 10 15 20 25 30

Rubber and plastics

Electronic and optical equipment

Printing and publishing

Non-metallic minerals

Other

Textile and clothing

Chemicals and pharmacy

Food processing

Wood processing

Mechanical engineering and metalworking

Share in total exports % Share in manufacturing output %


www.masoc.lv

Structure of the MM sector (value added, 2013,%)


www.masoc.lv

Development of mechanical engineering and metalworking sector (2000 – 2013)

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Output (million EUR) Export (million EUR) Output (25,27,28,29)


www.masoc.lv

Development trends of the sector(production output, 2005=100%)

0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010 2011 2012 2013Base metals Metal products

Electrical equipment Machinery and mechanical equipment

Automotive, trailers, semitrailers Other transport vehicles


www.masoc.lv

Change in production and exports(2014. 6 months / 2013. 6 months)

-63,8

6,7

-19,6

-9,7

9,126,2

-19,0

-81,3

4,6

-19,1

-6,6

5,7

27,2

-26,6

-100,0

-80,0

-60,0

-40,0

-20,0

0,0

20,0

40,0

Production

Exports


www.masoc.lv

Employment in the sector

0

5000

10000

15000

20000

25000

30000

2008

-I

2008

-II

2008

-III

2008

-IV

2009

-I

2009

-II

2009

-III

2009

-IV

2010

-I

2010

-II

2010

-III

2010

-IV

2011

-I

2011

-II

2011

-III

2011

-IV

2012

-I

2012

-II

2012

-III

2012

-IV

2013

-I

2013

-II

2013

-III

2013

-IV

2014

-I

(C30) Other transport vehicles

(C29) Automotive, trailers, semitrailers

(C28) Machinery and mechanical equipment

(C27) Electrical equipment

(C25) Metal products

(C24) Base metals


www.masoc.lv

Main export markets – mechanical engineering and metalworking

72 62 6 32 150

10

20

30

40

50

60

70

80


www.masoc.lv

Key issues


www.masoc.lv

Problems in Russian market

• About 12% of sectors’ exports goes to Russia (2013)

• In some segments the share exceeds 25% (electrical motors; machinery, etc)

• The exports decrease in 2014

• Uncertainty regarding future of this market


www.masoc.lv

Energy prices

• Rising electricity costs create risks for the industry, especially those companies that are energy intensive

• Discussions to reduce the burden caused by “the green energy” component in the electricity costs


www.masoc.lv

Education

• Education and HR development – constantly one of the key priorities

• Dealing with all levels of education system:

– Schoolchildren, youngsters;– Vocational and higher education– Further education / lifelong learning

• Good progress achieved in modernisation of vocational education infrastructure

• As from 2016 – mandatory exam in chemistry or physics (renewed) in secondary schools


www.masoc.lv

MASOC - Association of mechanical engineering and metalworking industries of

Latvia

Ezermalas 6K, Riga, LV-1006, LATVIAPhone: +371 67554825

Fax: +371 [email protected]

www.masoc.lv

Documents

Association of Mechanical Engineering and Metalworking Industries of Latvia MASOC Association of Mechanical Engineering and Metalworking Industries