Future perspectives of competitiveness of Latvia’s mashinery and metalworking industry

Abstract

Machinery and metalworking is a strategic sector (further MMS) with high value added. Its operations require wide knowledge and deep skills. MMS supplies all sectors of national economy with machines, equipment, spare parts and manufacturing systems and related services, as well as needed technologies and human capital and knowledge.

The EU research outlines the following criteria for future competitiveness of MMS:

• Problem solving competence;
• Customized knowledge;
• Technological excellence;
• Quality and confidence;
• Personnel quality and costs;
• Education and training;
• Investment in capital goods.

The dominance of low cost approach so far compensated weakness in other competitiveness factors. The recent rapid increase of wage levels, raw material and service costs ask for more and more efforts local companies should introduce to keep their competitiveness. As a result the industry strategy will be shifted to innovation, investment in new technologies and qualified labour.