Mechanical Engineering and Metalworking

The entire sector has achieved an enviable average year-on-year growth rate of nearly 23% since 1999. The key factors accounting for this substantial increase in productivity are investment in modern equipment and technology, and more efficient labour and production management. Due to the global economic downturn the output of mechanical engineering and metalworking sector in 2009 decreased by 39%.

Sector Output in Actual Prices (mln EUR)

Source: Association of Mechanical Engineering and Metalworking Industries of Latvia, 2010

According to 2009 data, more than 19 700 people were employed in the machinery manufacturing and metalworking sector.

Sector Employment (number of workers)

Source: Association of Mechanical Engineering and Metalworking Industries of Latvia, 2010

Sector Exports
More than a half of total sector output is exported.  Today, the largest trading partners for the export of Latvian manufactured machinery and metalworking products are Lithuania (15%), Estonia (12%) and Germany (9%).  The EU market is the destination for around 60% of goods exported from the sector.  This is a clear indication that Latvian-produced goods are achieving greater recognition as being extremely competitive in terms of price, quality and delivery time.

Exports by Country, 2009

Source: Association of Mechanical Engineering and Metalworking Industries of Latvia, 2010

Sector Exports (as % of output)

Source: Association of Mechanical Engineering and Metalworking Industries of Latvia, 2010

Sector Advantages

• Short order-delivery time.  Responsive, flexible SMEs, located close to markets and using modern technologies permit real-time communication and data exchange.  Labour strikes or work stoppages are practically unheard of.
• Computerised and on-line capabilities.  The vast majority of companies in the industry are equipped with computer systems and connected to the Internet.  The number of companies with their own website is growing rapidly.  The most widely used engineering and design programs are Solid Works, Auto-CAD and Master CAD, but others are also utilised.
• Educated and well-trained workforce.  Latvia's well-established education system prepares professional and shop-floor staff able to compete in today’s global market. Universities and colleges provide engineering, technology and science programmes, while technical and vocational schools, certified according to EU standards, educate and train the skilled labour force to utilise the latest technologies in automated and programmable metalworking equipment.
  

Additional Information
http://www.masoc.lv/  – Latvian Association of Mechanical Engineering and Metalworking Industries