Given that Latvia served as one of the high-tech manufacturing hubs for the Soviet military and aerospace industries, metal processing and engineering have traditionally been among the major industrial sectors in the nation. The industry’s excellent R&D competence, trained and economical staff, access to markets in the west, and metal supply from Russia are some of its key benefits. Numerous domestic and international businesses that export the majority of their output have linked their manufacturing processes to the global supply chain.
Primary segments of the sector
The primary subsectors include electrical engineering, shipbuilding, transportation equipment, fabricated metal goods, tool manufacture, machinery and equipment, motor vehicles, trailers, telecom, and fiber optics.
Engineering and metalworking sector in Latvia’s economy
The Latvian economy has always placed a high value on mechanical engineering and metalworking. With access to sizable markets, Latvia is situated between East and West. As a consequence, about 70 percent of the entire production was exported. The biggest export markets for Latvia’s metalworking sector are Denmark (14%), Sweden (13%), Russia (11%), and Germany (10%). 2020 saw 1.17 billion euros in exports. Modern engineering and metalworking industries provide and use enormous prospects for innovation and R&D because they take pleasure in their historical heritage and traditions.
Statistics on the industry
Metalworking, machinery, and electronics together employ 21% of those in manufacturing. 21% of Latvia’s total exports from the industrial sector came from this sector. In this industry, its turnover in 2020 was 19%. In terms of productivity adjusted for wages, Latvia has one of the most competitive labor markets in the CEE region for the manufacture of machinery, equipment, and metal products.
Education in the industry
There are 21 educational institutes of varying degrees that train professionals in the business. Modernization is provided through the educational system, which is highly valued by foreign investors and multinational corporations. Founded in 1862, Riga Technical University (RTU) is the oldest technical institution in the Baltics. The biggest university in Latvia, RTU, has a mechanical and engineering concentration.
Leaders in the industry
The following companies dominate Latvia’s engineering and metalworking sectors:
With four sites in Latvia and Denmark, East Metal has access to more than 40,000 m2 of manufacturing area. In projects involving intricate steel components and structures, East Metal thrives as a trustworthy partner. Along with producing machinery and machine components for the manufacturing business, it also has manufacturing projects for the wind energy industry, transportation equipment, cranes, and lifting equipment.
Jensen Metal is exceptional at providing high-quality steel, stainless steel, and aluminum parts, machinery, and whole systems. They were inspired to start a new black steel production facility by the company’s exceptional development rates in Latvia. It exports the majority of its produced goods to the USA, Germany, the Netherlands, Denmark, and the Netherlands.
One of the top manufacturers of microwave point-to-point radios and field-optimized portable spectrum analyzers in the world, SAF Tehnika has excelled in contemporary wireless data transfer technology. 99% of the company’s output is exported to more than 130 nations globally.
One of the top Nordic and Baltic electronic system research and production firms, HansaMatrix serves the top original equipment manufacturers (OEMs) in their specialized markets, including the industrial, transportation, communication, renewable energy, medical, and defense sectors. In Latvia, HansaMatrix has a plant that manufactures optical and liquid crystal display systems and offers its clients top-tier, innovative goods that are at the forefront of the industry.
In the majority of nations throughout the globe, Mikrotik supplies the hardware and software for Internet access. It is even utilized for missions to Mars and is present on Mount Everest. The World Intellectual Property Organization has given MikroTik the WIPO IP Enterprise Trophy in recognition of the company’s inventive use of the IP system and its effective corporate IP promotion initiatives.
Aerones creates cutting-edge robotic and IoT technology and offers wind turbine repair services globally. To conduct inspections, repairs, and cleanings, technicians control robotic tools. The technology decreases turbine idle time, lowers costs, increases energy production efficiency, and lowers greenhouse gas emissions.