Budapest Business Journal 24/04

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or supply Engineering a lab

Engineers

As growing domestic demand and the attraction of work abroad make engineers y a precious commodit industry here, the auto is becoming more efforts creative in its keep to attract and s. talented technician ANIKO FENYVESI

locabeen an attractive Hungary has long companies seeking tion for multinationalof low-cost technical pool as deep to tap a sizable pool is no longer experts, but that as it once was. automotive producWith the country’sis a growing demand in Hungary. in the haystack at the Audi plant Finding the needle avenues for attracttion booming, there at Hungary’s four Dual training Among the manytraditional approaches of local for capable engineers the hundreds concern close job ing new talents, automakers and them. Meanwhile, the a presence at “We recognized this training keeps students include maintainingposters and PR camsuppliers that serve has been shrinking, Dual it comes to schooling candidates, what ads, that fairs, electronic supply of engineers leave the country When automotive companies find early on and are doing many universities. to get paigns at the country’s as many professionalspastures elsewhere many a wide an effective way effective, and autohits the we can to provide dual training is methods can be a way to connect in search of greener board before it them as Union. work external, These young talent on makers still use in the European in the quest for job market. Dual training students array of internal and practical studies with candidates.

To remain competitive industry as part of their creative and proactive the automotive gain and in a firm But the more Siemens talent, firms in in school. They customizable training better results. on-the-job trainingattrac- while they are still training prothe methods can get present in the indusare providing with on-the-job is interested with a the- programs to support Hungary, which keeping engineers park where creative experience usually involve energy and healthgrams, which also These students have t of our staff.” trial, infrastructure, as assisting in the tions like a robotic component. are developmen as well that oretical experiment. sectors, can skills industry, induscare soft minds people in the of the automotive for new chance to develop world but are According to Hungar- the program digitalization for the working always looking problem is that the company, thishands-on among others, is traditional classenough important try, part of the to reach out to not taught in a education pro- According to not producing education in a innovative channels percent- usually ian schools are more, dual students and provides higher What’s where Germany, the employees.

In between room. qualprospective environment, engineers. provide connections employee recommendawith engineering with the comgradua- industrial can “We have an age of graduates double digits; in Hun- grams career our colleagues and students before can acquaint themselves the products and environment program in which to companies soon ifications is in pany’s processes, with the tion recommendations for open or about 6%, according which is an excellent Tóth, Those familiar gary it is still only country HR manager tion, opportunities. explains Gábor graduates make for recruiting. and Methodologi- program say it really helps the com- to open positions,” András Somogyi, Group, a firm that The Dual Training start when HR at Siemens.

College funded at the Bosch Hungary engineers here. off to a running them. And the firm Head of a presence at colleges 1,000 cal Center at Kecskemétset up four years get hires Bosch maintains employs close to pany eventually in Hungary through complete engineer- by Mercedes-Benz was now stands was entering the is hiring: Audi’s headcount 100 when and universities And those who not have that employ the just as Mercedes Hungary may the roughly ring secengineering lecturers materials, allowworking ago, ing training in auto-manufactu at 11,500, up from in 1993. teaching prepare for the done enough to final-year students or Hungariantraining programs and intern- Audi first opened in Hungary dual train- company’s own acquaint themselves with “Dual offers well qualified students to world. “Not many clear goals, possess tor. at the company Opel Szentgotthárd a jump on ing ensure a continuous, and have carmaker gets latest developments Somonew graduates qualities, speak foreign ships of young people to our plant, ing too, but the by estab- the leave school, says before they even very professional their university years supply based on the successful German introducing itself to candidates are with prospective gyi of the Bosch Group.

Director also entice languages or spent than the ‘minimum’,” they relationships László Ács, HR of careers Hun- lishing model,” explains skills.

He adds that competitions well before ideas doing any more Manufacturing has a to test their students employees The company talented students schools at Mercedes-Benz according to Somogyi. this program, similar purpose on the horizon. school a are Hungary’s for serve “Through primary wait has gary.

Rather than abstract knowledge model for engaging with and remains These methods the student automotive industry supplement their education wherebycompany well parents periods, and to do more, the its own schooling. “We can towards to dual students and their to the compulsory practice as students move explains feels a connectionhas chosen a specific and are with begun to provide experience.” knowledge and concern early on train- in contact before he or she recognized this to provide a wide array gain also has a dual Uni- graduation from university, Audi Hungaria István internal communications career path. doing what we can at the Széchenyi that pro- Delinke Kovács, external, customizable of 2015 devel- ing program of internal and specialist at Opel. to support the in Győr, and as with its own faculty. training programs says Audi Hungar- versity staff,” gram was augmented opment of our department. ia’s communications

RECRUITING ENGINEERS

BUSINESS JOURNAL BUDAPEST

VOL. 24. NUMBER 04

HUF 1,250 | €5 | $6 | £3.5

How big of a boom?

FEB 26, 2016 – MARCH 10 , 2016

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

SPECIAL REPORT

In search of the elusive engineer Once a haven of cheap tech talent, Hungary is facing a shortage of more qualified engineers. We spoke to automakers and their local suppliers about how they address this challenge. 14

BUSINESS

Ignoring economic crime at their peril A survey by PwC, conducted at nearly 100 Hungarian firms and more than 6,000 worldwide, shows that executives here may be too complacent when it comes to the risks of fraud and cybercrime. 12

NEWS

Photo: Mátyás Pödőr

Look out Austria, here comes Hungary MNB Governor György Matolcsy claims that this country has what it takes to surpass its northern neighbor economically in a quarter of a century, but analysts remain skeptical. 3

Housing construction is set to increase rapidly due to two government initiatives, but Otthon Centrum’s Gábor Soóki-Tóth says the impact will be moderate. 7

BUSINESS

BBJ_2404_news.indd 1

SPECIAL REPORT

BUSINESS

HIPA handles record number of projects

Keep your MBA, we need mathematicians!

A rush for industrial real estate

The organization tasked with bringing FDI to Hungary said it had a banner 2015 and that this year is looking even better. The foreign minister says its approach jibes with his philosophy of economic diplomacy. 9

The Budapest office of financial services company Morgan Stanley says economics can be taught to people who are good analytical thinkers. That’s why they look for math and science specialists. 19

Hungary needs to build more logistics parks to meet the growing demand for industrial space here, analysts say. The vacancy rate for such space is said to be hovering around historical lows. 11

2016. 02. 24. 20:23

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Budapest Business Journal | Feb 26 – March 10, 2016

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SUBSCRIPTIONS

Report

Engineering a labor

Engineers

supply

As growing domestic demand and the attraction of work abroad make engineers a precious commodity industry here, the auto is becoming more efforts creative in its keep to attract and talented technicians.

ANIKO FENYVESI

locabeen an attractive Hungary has long companies seeking tion for multinationalof low-cost technical pool as deep to tap a sizable pool is no longer experts, but that

as it once was. automotive producWith the country’sis a growing demand in Hungary. in the haystack at the Audi plant Finding the needle avenues for attracttion booming, there at Hungary’s four Dual training Among the manytraditional approaches of local for capable engineers the hundreds concern close job ing new talents, automakers and them. Meanwhile, the a presence at “We recognized this training keeps students include maintainingposters and PR camsuppliers that serve has been shrinking, Dual it comes to schooling candidates, what ads, that fairs, electronic supply of engineers leave the country When automotive companies find early on and are doing many universities. to get paigns at the country’s as many professionalspastures elsewhere many a wide an effective way effective, and autohits the we can to provide dual training is methods can be a way to connect in search of greener board before it them as Union. work external, These young talent on makers still use in the European in the quest for job market. Dual training students array of internal and practical studies with candidates.

To remain competitive industry as part of their creative and proactive the automotive gain and in a firm But the more Siemens talent, firms in in school. They customizable training better results. on-the-job trainingattrac- while they are still training prothe methods can get present in the indusare providing with on-the-job is interested with a the- programs to support Hungary, which keeping engineers park where creative experience usually involve energy and healthgrams, which also These students have of our staff.” trial, infrastructure, as assisting in the tions like a robotic component. well are development industry, indus- oretical care sectors, as soft skills that minds can experiment. people in the of the automotive for new chance to develop world but are According to Hungar- the program digitalization for the working always looking problem is that out to the company, thishands-on among others, is traditional classenough important try, part of the not taught in a education pro- According to channels to reach in a not producing and innovative percent- usually higher education ian schools are more, dual Germany, the between provides environment, where students prospective employees. qual- room. What’s engineers. In provide connections employee recommendawith engineering with the comgradua- industrial can “We have an age of graduates double digits; in Hun- grams career our colleagues and students before can acquaint themselves the products and environment program in which to companies soon ifications is in pany’s processes, with the tion recommendations for open or about 6%, according which is an excellent Tóth, Those familiar gary it is still only country HR manager tion, opportunities. explains Gábor graduates make for recruiting. and Methodologi- program say it really helps the com- to open positions,” András Somogyi, Group, a firm that The Dual Training start when HR at Siemens.

College funded at the Bosch Hungary engineers here. off to a running them. And the firm Head of a presence at colleges 1,000 cal Center at Kecskemétset up four years get hires Bosch maintains employs close to pany eventually in Hungary through complete engineer- by Mercedes-Benz was now stands was entering the is hiring: Audi’s headcount 100 when and universities And those who not have that employ the just as Mercedes secHungary may the roughly engineering lecturers materials, allowworking ago, ing training in auto-manufacturing at 11,500, up from in 1993. teaching prepare for the done enough to final-year students or Hungariantraining programs and intern- Audi first opened in Hungary dual train- company’s own acquaint themselves with “Dual offers well qualified students to world. “Not many clear goals, possess tor. at the company Opel Szentgotthárd a jump on ing ensure a continuous, have Somoto our plant, and ing too, but the carmaker gets by estab- the latest developments foreign ships new graduates leave school, says of young people qualities, speak before they even very professional their university years supply based on the successful German introducing itself to candidates are with prospective gyi of the Bosch Group.

Director also entice languages or spent than the ‘minimum’,” they relationships László Ács, HR of careers Hun- lishing model,” explains He adds that competitions well before ideas doing any more their skills.

Manufacturing has a students to test The company at Mercedes-Benz program, students employees according to Somogyi. this school talented a similar purpose are on the horizon. for Hungary’s schools has gary. “Through their abstract knowledge model for engaging with primaryremains These methods serve Rather than wait the student automotive industry supplement education wherebycompany well parents and periods, and to do more, the its own schooling. “We can towards to dual students and their to the compulsory practice as students move explains feels a connectionhas chosen a specific and are with begun to provide experience.” knowledge and concern early on train- in contact before he or she recognized this to provide a wide array gain also has a dual Uni- graduation from university, Audi Hungaria István internal communications career path. doing what we can at the Széchenyi that pro- Delinke Kovács, external, customizable of 2015 devel- ing program of internal and specialist at Opel. to support the in Győr, and as with its own faculty. training programs says Audi Hungar- versity staff,” gram was augmented opment of our department. ia’s communications

RECRUITING ENGINEERS

BUSINESS JOURNAL BUDAPEST

VOL. 24. NUMBER 04

FEB 26, 2016 – MARCH 10 , 2016

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

HUF 1,250 | €5 | $6 | £3.5

How big of a boom?

SPECIAL REPORT

In search of the elusive engineer Once a haven of cheap tech talent, Hungary is facing a shortage of more qualified engineers. We spoke to automakers and their local suppliers about how they address this challenge. 14

Call +36 1 398-0344, or email circulation@bbj.hu Budapest Business Journal 1 year HUF 27,500+VAT 6 months HUF 13,750+VAT 3 months HUF 6,875+VAT

BUSINESS

Ignoring economic crime at their peril A survey by PwC, conducted at nearly 100 Hungarian firms and more than 6,000 worldwide, shows that executives here may be too complacent when it comes to the risks of fraud and cybercrime. 12

NEWS

Photo: Mátyás Pödőr

Look out Austria, here comes Hungary MNB Governor György Matolcsy claims that this country has what it takes to surpass its northern neighbor economically in a quarter of a century, but analysts remain skeptical. 3

Housing construction is set to increase rapidly due to two government initiatives, but Otthon Centrum’s Gábor Soóki-Tóth says the impact will be moderate. 7

BUSINESS

SPECIAL REPORT

BUSINESS

HIPA handles record number of projects

Keep your MBA, we need mathematicians!

A rush for industrial real estate

The organization tasked with bringing FDI to Hungary said it had a banner 2015 and that this year is looking even better. The foreign minister says their approach jibes with his philosophy of economic diplomay. 9

The Budapest office of financial services company Morgan Stanley says economics can be taught to people who are good analytical thinkers. That’s why they look for math and science specdialists. 19

Hungary needs more construction of logistics parks to meet the growing demand for industrial space here, analysts say. The vacancy rate for such space is said to be hovering around historical lows. 11

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THE EDITOR SAYS

Better education can help stop brain drain Although Hungary’s leaders have spent a lot of time spreading fear of the phenomenon of immigration, emigration is a much bigger problem. Instead of worrying about who comes into Hungary, it is time to pay more attention to how many people are leaving. While a “family support” plan like CSOK might sound like a nice way to encourage Hungarian babies, it is not going to keep people here, and it certainly won’t stem the brain drain.

Doctors have been leaving this country at a rate of 1,000 a year, but the problem is becoming acute in other areas, like the fields of engineering and IT, where the best trained workers leave. This is a loss for local companies, and the trend makes Hungary a less interesting place for investors, who have traditionally come here seeking affordable talent.

To a certain extent, this exodus is inevitable: Hungarians can get employment elsewhere in Europe, which is a good thing. But much more can be done to make this the kind of country where young, creative people want to stay and try to make something of their lives. Even if local salaries are much lower, local costs are also somewhat lower too; many professionals might choose to stay in the country they love if some basic conditions improved.

Unfortunately, the system is set up so that an intelligent young person is likely to come to the conclusion that it is time to leave.

Not only are grammar schools so underfunded and overmanaged by a centralized authority that teachers and parents are holding demonstrations and planning strikes, but funding cuts and politics have also apparently taken their toll on the country’s excellent universities. Professors and students have complained of political interference in administration and downsizing of certain departments based on apparently

arbitrary decisions. Our best and brightest students will assess the situation and figure out how to get their education elsewhere. And if they cannot leave the country for schooling, they can definitely leave after graduation.

It appears that a big part of the problem is mismanagement by government authorities, which started taking greater control over all education after Fidesz was elected in 2010. In that case, the government needs to reform the management of education.

But if some or all of the problem is due to lack of money in the state budget, that should be solvable: We simply need to compare the importance of our children’s future against expensive projects like the total reconstruction of City Park, an Olympic bid for Budapest, purchases of landmark properties by the central bank – and a host of other high-profile and unneeded government expenditures.

We could also take a critical look at CSOK, a program designed to give families gifts of as much as HUF 10 million toward buying a new home if they promise to have enough children.

While CSOK is clearly meant to help the construction industry, another stated purpose of the program is to encourage Hungarians to start families. But how many families can receive HUF 10 million grants before the government runs out of money? What is the point of encouraging people to have babies when we are not doing enough to educate the young people who already live in Hungary? What kind of institutions will await these babies when they reach school age?

Before making room for new people, we should do something to stop those already living in Hungary from leaving.

Then and now Below, the Enchanted Castle is disassembled on February 23 as the remnants of Budapest’s now-closed amusement park are cleared away. The Budapest Zoo operated some of the old amusements for a while after the 2013 closing, but now that the Zoo Park is being completely renewed in the framework of the Liget Project, the last rides of Vidámpark are being removed.

At left is the Enchanted Castle in 1962.

PHOTO CREDITS: MTI / Attila Kovács, Fortepan.hu / Antal Kotnyek

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2016. 02. 24. 20:23

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NEWS

Building boom anticipated  7

NEWS

Orbán, V4 nieghbors content with EU summit6

Catching up with the neighbors György Matolcsy, head of the Hungarian National Bank says Hungary has what it takes to outpace Austria economically.

ZSÓFIA CZIFRA

“Our historic goal is to catch up with Austria, and now this has become a reality based on the results of the past five years,” Hungary’s central bank governor György Matolcsy said at a February 22 press conference, where the latest addition to the bank’s economics and monetary policy books was introduced.

Two managing directors of the National Bank of Hungary (MNB) edited the book, entitled “Competitiveness and Growth”.

Hungary needs to carry on with its current economic policy, aimed at increasing the country’s competitiveness, because the next 25 years will be about convergence, Matolcsy claimed at the book premier. He also emphasized that economic growth in Hungary was 2-2.5% higher than in Austria in the past two years, claiming that this growth rate will be sustainable in the following years. He said consolidation had been achieved in recent years, and growth has begun, laying a foundation for sustainable growth for the next 15-20 years.

Central bank managing director Barnabás Virág, one of the editors of the book, said Hungary is currently enjoying a rare moment in its economic history when stability and growth are both present.

According to him, this opens up long-term perspectives for planning, for example, to finally stop the decline in population.

Matolcsy thinks Hungary will be able to catch up and that this convergence is unimaginable without improving competitiveness. Matolcsy stressed that central bank experts had started to draw up a convergence plan for the country for the next five and also for the next 25 years at the Prime Minister’s request. The goal is to catch up with Austria, he noted.

Different scenarios, same voices Various portals were quick to react to Matolcsy’s statement about the planned convergence, and several calculations about when and how Hungary could catch up with its Western neighbor have been published.

Even the best-case scenarios said that some 47 years would be needed in order to surpass Austria’s performance; doing so within the next 25 years would certainly require an “economic miracle”. Mfor.hu, for example, calculated that if the Austrian economy continues to grow at around 1.6% in the next quarter century, Hungary

BBJ_2404_news.indd 3

From left, OTP Chairman-CEO Sándor Csányi, National Bank of Hungary Governor György Matolcsy, Hungary’s President Áder János and Hungarian physician, neuroscientist, pharmacologist and university professor Szilveszter E. Vizi, at a February 22 press event. Matolcsy announced the launch of his bank’s latest publication at that event.

Even the best-case scenarios found it would take 47 years to surpass Austria’s performance; doing so within the next 25 years would certainly require an “economic miracle”. would need to produce an average economic growth of 6.6% between 2018 and 2041 (which has not happened since 1996) in order to catch up.

According to one optimistic scenario, if Hungary’s economic growth (based on the previous years’ data) keeps surpassing Austrian economic growth by 2.5% (which means a 4.1% yearly growth rate), we could catch up by 2063. In a worst case scenario, this date is delayed even further: assuming 3.6% GDP growth in Hungary in the coming decades (with Austria’s economy expanding at 1.6%), the projected date for convergence with Austria would be in 2075, the site wrote.

Another worrying sign regarding sustainable development – although it was not mentioned at the book premier – is that Hungarian economic growth has been greatly supported by funding from the European Union. In the course of the last five years alone, Hungary received EU funding worth one-fifth of the country’s yearly GDP, with significant amounts directed at the agrarian sector too. Without these amounts, the economy could hardly produce any growth, site 168ora.hu argues. And in the era after

Numbers to watch for in the coming weeks Employment and unemployment figures for the November-January period will be released on February 26, followed by investment data from the fourth-quarter of 2015 on February 29. March will kick off with retail trade figures for January, and the Central Statistics Office will also publish external trade in goods on March 3. January industry data will come out on March 7; the next day will see the February consumer price index, and also the GDP data for the last quarter of past year (second estimate).

2020, money taps from the EU will be almost closed, the site notes, raising serious concerns about the sustainability of the economy’s growth rate.

Base rate unchanged with outlook for monetary easing As expected by analysts, the monetary policy council (MPC) left the base rate unchanged at 1.35% at its latest ratesetting meeting on February 23. This has not come as a surprise, but again, in its note released after the meeting, the MNB wrote that it “may ease monetary conditions further in view of the March Inflation Report”. This, according to analysts, carries a slightly different message to a similar note released in January. This time, says OTP Research analyst Szilárd Kondora, rate cuts look as likely as unconventional measures.

“Our updated forecast expects only 0.5% inflation this year and 2.2% next year, both below the 3% target of the MNB,” he said. According to him, the first rate cut will come at the April meeting when the MNB will see the effects of the termination of the two-week deposit.

“Judging by the statement, we think there are two factors that would trigger rate cuts,” William Jackson from Londonbased Capital Economics said. “The first is a revision to the inflation forecast.

This seems likely. The second factor is additional easing by the European Central Bank. Again, we think this is likely (as soon as next month). Previously, the MPC had flagged that it would adopt ‘unconventional’ tools, but there was no mention of this today. As a result, our sense is that the council is gearing up to lower the policy rate,” Jackson wrote.

Analysts with Erste Bank, however, see it differently: “The statement has not changed significantly compared to January’s. The MPC reiterated the usual sentence that the maintenance of the current base rate over the forecast horizon is in line with the medium-term achievement of the inflation target. On the other hand, the last sentence contains a slightly dovish bias: ‘The Monetary Council may ease monetary conditions further in view of the March Inflation Report.’ In our view, nonconventional tools may be introduced first, without touching the base rate.”

2016. 02. 24. 20:24

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04 News EXPERT OPINION

NOTE: ALL ARTICLES MARKED EXPERT OPINION ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Novel approaches in place of old paradigms about Customer Experience negative impressions that our clients have gained in other sectors affect their opinion about us so that, in effect, we Csaba compete with everyone in generating a Szabó positive picture.

When driving loyalty and commitment, emotional effects are more CEO, CX expert important than rational ones, and most impressions are not realised consciously, Develor but are recorded and stored in our subconscious mind.

In spite of the fact that the role of human interactions has a crucial Customer Experience is importance in generating emotional bonding, customer experience is also a key differentiator in influenced by online, mobile and call today’s business world. centre transactions. Thus there can be no excellent customer experience Based on DEVELOR’s without successfully synchronizing all channels; this is un-doubtedly one of International Customer the biggest challenges companies are Experience Survey still faced with.

Development of customer-centric 2016, corporate decision capability cannot happen in isolation to makers reported 21% total the rest of the business. Transformation needs to be based on building strong income loss where they foundations which are shaped by strategy and leadership, people fail to provide positive, and culture, data management and technology. Customer-centric focus brand consistent CX. is then operationalized through daily There is a huge amount of customer experience management, measurement and agile processes. money at stake.

The alignment is required through the whole transformational process.

It requires that each action in the We often meet sales people who complain organization has customer focus. It about the price level and pricing policy of can be achieved through a specific their company, and claim they would be leadership model (aka Governance much more successful if they sold their Model that defines set of daily, weekly, products at a more competitive (meaning monthly and yearly routines and drivers lower) price. It is worth confronting that have direct impact on excellent such colleagues with the findings of this customer experience. research. The primary defining factor is DEVELOR as CX expert supports its not the price, but the service quality that clients on this journey by providing colleagues provide. Loyal customer will expertise and capacity. We co-create pay the price. Researches proved that solutions with our customers and get returning customers spend on average them implemented at all touchpoints with human interactions. We help 33% more. customer experience It should be no surprise that 75% of implement companies place CX amongst the No management through people with the 3 highest ranked strategic topics, and right mindset and the proper behavior, the same percentage aims to be the CX improved and unified leadership at all leader of their business segment. levels, and more efficient people related It is hard to find a single focus for the processes. definition of Customer Experience; there Though your customers expect your is no accounting for taste. But if you company to be as centered on them wish to manage CX properly, it is useful as they are centered on themselves, to have a good starting point. DEVELOR customer centricity is a two-way ticket. has therefore created the following It is a strategy to fundamentally align definition: “Customer Experience is what you offer with what your most an IMPRESSION that emerges in all valuable customers want. That strategy Touchpoints – on the basis of previous has a specific aim: more profits for the experiences and expectations – which long term. is effected by rational and emotional, The big hit of March will be the 2nd International Customer Experience conscious and subconscious impulses.”

According to our definition, we can Conference, the largest business event distinguish between negative, neutral, about the topic in Central-Europe, held and positive customer experiences. We in Hotel Hilton Budapest on the 9th must consider the customers’ previous of March with 15 speakers represent 9 experiences in the given business countries from Spain to Slovakia and segment. Moreover, the positive or from United Kingdom to the Middle East.

BBJ_2404_news.indd 4

Budapest Business Journal | Feb 26 – March 10, 2016

NEWS IN BRIEF Hungarian government initiates referendum on EU quota plan The Hungarian government decided to initiate a referendum on whether Hungarian citizens agree with the European Union’s quota plan, Prime Minister Viktor Orbán said on February 24 during an extraordinary press conference. Orbán said the questions being put forward will ask citizens whether they believe the European Union should force Hungary to accept non-Hungarian citizens without the government’s approval.

The PM said that those who vote “no” on the referendum would be supporting Hungary’s independence. Orbán added that the referendum is also about the loyalty of Hungarians as Hungarian people can only prove their loyalty to their country and government if they are asked about such important decisions as a quota plan. “The EU has no right to make decisions that could change the lives of people, without asking them,” Orbán said. He added that the quota plan would redesign the ethnic and religious makeup of Hungary, and no European authority has the right to make such a decision. To do so is an “abuse of power”, the prime minister said. In response to a question in connection with the events that took place at the National Election Office (NVI) concerning the referendum on the Sunday closings law, Orbán said that it clearly showed that legislation needs to be changed, and asked the NVI to propose suggestions.

Lázár: Hungary to call down Russian funds for Paks first phase The government is planning to call down Russian funds by the middle of the year to finance the preparatory phase of the expansion of Hungary’s sole nuclear plant, Cabinet Chief János Lázár said on February 18. During his regular weekly press conference, Lázár said that expenditures related to the Paks upgrade have already been included in the central budgets of 2017, 2018 and 2019, Hungarian news agency MTI reported. Lázár added that for 2017 and 2018 annual costs of the project could be around HUF 250500 billion, MTI said. Lázár noted that the Paks upgrade was discussed at a “strategic level” during Prime Minister Viktor Orbán’s recent official visit to Russia, but the parties did not get into specific details on implementation, MTI reported.

Hungarian voucher system incompatible with EU law, says Court of Justice The European Court of Justice ruled on February 22 that elements of the SZÉP leisure card and Erzsébet food-voucher systems, which enable Hungarian employers to offer their employees reduced tax benefits as part of Hungary’s unified voucher system, conflict with EU law, the court said in a press release on February 22. According to Hungarian tax legislation, employers may provide vouchers or cards to their employees under favorable tax conditions.

Employees may then use these vouchers or cards to obtain a number of goods and services, by circumventing the additional payments to third parties from which these goods and services are purchased.

MNB to give banks six-month extension to manage forint mortgages

Banks will have until April 1, 2017 to improve the requirement set by a June 2015 National Bank of Hungary (MNB) decree to back at least 15% of their net mortgage loans with longterm liabilities, the MNB announced on February 23, according to Hungarian news agency MTI. The bank’s financial stability council decided to move the deadline six months ahead from the original deadline of October 1. In a further amendment, a de minimis rule will be introduced which will exempt financial institutions with less than HUF 3 billion in retail mortgage loan stock – considered non-significant players in the segment – from the requirement.

The MNB press release noted that the amendment of mortgage legislation, and the re-introduction of independent mortgage rights is necessary to make Hungarian regulations compatible with EU law and to create a sound mortgage bond market. Legislative amendments aimed at supporting the financing of the existing loan stock through mortgage bonds is expected to be in place by the spring, the MNB said.

Hungarian economy performing well, vulnerability declined, says IMF

The Hungarian economy is performing very well and its vulnerability to shocks has declined substantially, although debt levels and financing needs remain high, IMF staff said in a report based on their preliminary findings gathered as part of the IMFʼs regular consultation

2016. 02. 24. 20:24

News 05

www.bbj.hu

Budapest Business Journal | Feb 26 – March 10, 2016

with Hungarian authorities, state news agency MTI reported. According to the IMF, solid growth and a sharp reduction in unemployment are largely due to supportive macroeconomic policies, a favorable external environment and high utilization of EU funds. The IMF believes Hungary is now less vulnerable to external shocks, however, financing needs remain high, and an abrupt sharp deterioration in global or emerging market risk perception could lead to capital outflows.

Accommodative fiscal and monetary policies have been helping on the growth front, they have also expanded the state’s role in the economy and shifted risks to the public sector, the report said.

Survey: Hungarians spend 86 mins daily on Facebook Hungarian Facebook users spend an average of 86 minutes a day on the social networking site, according to a survey by the Hungarian Content Providers Association (MTE) financed by the National Media and Infocommunications Authority (NMHH), Hungarian news agency MTI reported on February 16.

Approximately 49% of respondents said they use the site for communication purposes, 43% for entertainment, while 40% use it to stay informed, according to the survey. Two-thirds of respondents noted that they enjoy the humorous content shared on Facebook. According to the survey, women, people with a lower level of education and people under 30 use Facebook the most, MTI reported. The survey involved the participation of 500 Facebook users between the ages of 18 and 49, MTI reported, adding that the sample was representative in terms of gender, age, place of residence and education.

Ministry confirms plan for tax sector watchdog Hungary’s National Economy Ministry confirmed reports that it is planning to establish a new oversight authority for accountants, tax consultants and auditors, the ministry announced on February 15, according to Hungarian news agency MTI. The ministry said that regulations governing the authority would be set with the involvement of representatives of the affected financial institutions, MTI reported. The ministry expects the new authority to show that confidence in the sector has been restored, according to MTI. The ministry added that the new watchdog would have the power to draft regulations that support the enforcement of decrees.

Schools agency is broke, KLIK chief admits The head of the Klebelsberg Institution Maintenance Center (KLIK), the state organization that runs schools in the country, has admitted that the agency’s funds were so limited it could only spend money on paying wages over the past few months, online news portal origo.hu reported on February 23. KLIK chief József Hanesz said in an interview that, with debts of HUF 17 billion, KLIK does not have enough money to run schools. “We cannot pay anything but wages,” he said. Last week KLIK turned to gas and electricity providers, asking them not to shut down services at schools by April 2016, even if bills are unpaid. Cabinet Chief János Lázár said last

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week that the problem was caused because, when the government formed KLIK in 2010, the state had taken over all schools that were earlier financed by local councils.

Teachers and parents have objected to the central administration that KLIK provides, saying the body unnecessarily imposes too much control over the curriculum, forcing students to take a lot of unnecessary classes and emphasizing memorization over analytical thinking. The teachers have also complained about poor pay. To air their frustration, teachers held a mass demonstration on February 13, with more demonstrations planned

Finnish court suspends refugee returns to Hungary Finland will suspend returns of asylum seekers to Hungary, apparently because a Finnish court decided on February 13 that the asylum seekers would not receive appropriate treatment in this country, according to reports. Under the Dublin Regulation, rejected asylum seekers who are in the European Union should be returned to the first country in which they entered the EU. Based on the decision by the Helsinki Administrative Court, which is in charge of all Dublin repatriation, if an asylum seeker files a complaint about being returned to Hungary, they cannot be sent here, according to YLE News, a Finnish news portal. The article said that the decision indicates that “an authority has reason to believe that the asylum seeker will not be treated appropriately” if they are sent back to Hungary. “The justification can be the risk that the insecure destination country presents to the asylum seekers in question, for example. But I must point out that I have not personally familiarized myself with the reasons for this particular decision,” Lisa Heikkilä, a judge at the Helsinki Administrative Court, was quoted as saying.

UN calls on Hungary not to stigmatize human rights defenders

The United Nations is calling on the Hungarian government to stop stigmatizing and intimidating human rights defenders and start ensuring they can conduct their work “in an enabling legal and administrative environment”, independent expert Michel Forst said in a press release published on February 16.

“Human rights defenders in Hungary are increasingly working in a rather polarized and politicized environment,” said the UN special rapporteur on the situation of human rights defenders at the end of a first visit to the country, according to the press release. Forst also criticized attempts to de-legitimize defenders and undermine their peaceful and legitimate activities through criminal defamation and excessive administrative and financial pressure, the press release added. “In the context of the refugee crisis and the excessively manipulated fear of the ‘other’ in society, defenders face public criticism by government officials, stigmatization in the media, unwarranted inspections and reduction of state funding,” the special rapporteur noted. During his visit, Forst heard specific testimonies that defenders who criticize the government or raise human rights concerns are quickly intimidated and portrayed as “political” or “foreign agents”, according to the press release.

Socialists cry foul over blocked referendum question Opposition Socialist leader József Tobiás giving a speech at the demonstration his party organized on the evening of February 23, after a group of men prevented Socialist MP István Nyakó from submitting a proposal for a referendum to kill the Sunday closing law. Nyakó says his referendum call was disqualified because he could only submit his question on the Sunday closings law to National Election Office (NVI) after a woman, who is said to be the wife of a former Fidesz mayor, had handed in her own question favoring the law.

Nyakó’s access had been allegedly blocked by a dozen or so heavyset men with shaved heads. Given that the two initiatives reportedly address the same issue, the NVI can only consider the first submission, and is not required to process the second. Opposition parties reportedly accused Hungary’s governing party Fidesz of influencing the outcome of the referendum question, while Fidesz vice-president Gergely Gulyás insisted that the party is not in any way involved in the events that took place at the NVI office. (Photo: MTI/Szilárd Koszticsák) ADVERTISEMENT

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2016. 02. 24. 20:24

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06 News

Budapest Business Journal | Feb 26 – March 10, 2016

V4 countries seem satisfied with EU summit Prime Minister Viktor Orbán and his colleagues from around the region were willing to accept U.K. conditions on EU reform.

CHRISTIAN KESZTHELYI

Hungary and its neighbors received the promises they were hoping for on protection of their own immigrants in the United Kingdom, while also apparently softening their stance on immigrants from outside of the European Union, during a February 19 summit in Brussels.

Immediately after the EU summit, Hungarian Prime Minister Viktor Orbán said that “we achieved the aims we set before the summit”, and defended the “most important European principle: No EU citizen can be discriminated against on grounds of nationality”, Hungarian news agency MTI reported. He said at a press conference after the summit that the results achieved in connection with the British demands were prepared together with the Visegrad Group countries, MTI reported. He tagged it as a success that the freedom to work inside the EU is still possible in the United Kingdom. He added

Hungarian Prime Minister Viktor Orbán speaks following the February 19 summit in Brussels (MTI/Balázs Szecsődi) that with the EU declaring that the outer borders need to be protected, the European Union had for the first time accepted a Hungarian solution, MTI reported.

The summit was called to discuss reforms proposed by British Prime Minister David Cameron, who is seeking to dissuade his citizens from voting to leave the EU in a referendum. That referendum is now set for June 23.

One major sticking point for Hungary and its Visegrad Four neighbors – Czech Republic, Poland and Slovakia – was the social benefits the U.K. offers to workers

coming from EU member states. In a gathering days before the Brussels summit, the V4 leaders said that they would oppose restrictive measures in this area. But the deal worked out in Brussels seemed adequate to their needs: The U.K. can freeze social benefits for workers of other EU members for four years in every seven year period – provided the U.K. can prove that their social security system is under huge pressure due to issuing the benefits.

When it came to agreement on how to handle the refugee crisis, apparently even Hungarian Prime Minister Viktor Orbán, who has been virulently opposed to any quotas for the number of migrants that EU countries must accept, was ready to compromise on the matter.

“On the migration issue, it was clear that the V4 group has softened its approach since it did not push the ‘second defense in line’ alternative plan and gave a second chance to Greece instead of trying to isolate Athens on the Macedonian border,” Edit Zgut, foreign policy analyst at the Political Capital Institute, told the Budapest Business Journal. At the February 15 V4 meeting, Orbán had advocated isolating Greece, which has heavy refugee traffic, by putting up tough border controls that cut that country off from the Schengen zone.

Orbán was reported to have supported the formal conclusions adopted at the summit, including a call for sharing refugees among EU members. While

opposition politicians in Hungary accused Orbán of flip-flopping on his opposition to refugee quotas, government spokesperson Zoltán Kovács said the agreement referred to an earlier plan.

Zgut agreed with this assessment. “This referred to the EU summit last December which declared that member states must implement decisions relating to the relocation of migrants within the EU,” Zgut said, noting that Hungary sued against the idea of quotas in the European Court.

Zgut said it was not clear why Hungary did not append separate opinions to that court decision. “They could have considered that this relocation plan is dead already since most of the member states were reluctant to implement it so far,” she added.

In connection with a discussion between Germany and Turkey to let as many as 500,000 refugees come from Turkey to Europe, Orbán earlier said he does not support the measure.

“This is not on the table yet officially, but the Merkel-Sansom plan is about considering Turkey as a safe third country and resettling migrants directly from there into the EU legally,” Zgut said.

According to the analyst, based on opinion polls, people in the region “still show very little support for accepting migrants across the region and politicians like Orbán have seen their popularity surge thanks to his opposition to migrants”.

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2016. 02. 24. 20:24

News 07

www.bbj.hu

Budapest Business Journal | Feb 26 – March 10, 2016

Government subsidies to boost home building While the CSOK program and a reduction in the cost of VAT for building homes are expected to increase demand, supply may take a while to catch up, so prices could rise in the short term, says an analyst. Within a couple years, he anticipated that the volume of sales should return to pre-crisis levels.

BBJ ANALYSIS

The government is increasing efforts to promote home construction, sparking anticipation of growth in housing development, but market forces are likely to keep these programs from igniting a full-on building boom, according to one analyst.

The number of homes sold in Hungary this year is expected to reach 150,000155,000, as compared to the previous year’s approximately 135,000, due to the home subsidy purchase program (CSOK) the government is planning to introduce this year, said Gábor Soóki-Tóth, head of research at Otthon Centrum.

Soóki-Tóth said at a press conference on February 17 that, because the residential real estate supply will be unable to keep up with the increasing demand for new and used homes in the short-term, prices could increase by 5%-25%.

He told the Budapest Business Journal that this demand pressure would probably not be a long-term phenomenon, and that home prices in Hungary should normalize by 2017.

The government’s CSOK program, which is being promoted as a policy to help Hungarian families while encouraging construction, provides grants and loans to families who have children, or are planning to have children, so they can buy new homes.

The grants, which can reach as high as HUF 10 million, come shortly after a reduction in VAT on housing, from 27% down to 5%, which began this year.

Because “developers have been holding back investments for years now”, the impact of both programs should be strong, according to Dénes Szabó, a partner specializing in real estate at the law firm of Taylor Wessing in Hungary.

“Some experts predict a 30- 50% rise in the number of apartment-constructions alone this year and a not too substantial increase in land prices and construction fees,” he said.

Soóki-Tóth said that many of the projects that were suspended or halted earlier could be revived. Because most of the CSOK applicants will enter the property market at almost the same time, and no large-scale construction projects have been launched for years, the subsidy

BBJ_2404_news.indd 7

Gábor Soóki-Tóth, head of research at Otthon Centrum. (Photo: Mátyás Pődör)

“Developers have been holding back investments for years now. ...

Some experts predict a 30-50% rise in the number of apartmentconstructions alone this year and a not too substantial increase in land prices and construction fees.” and VAT decrease will probably generate a sudden demand causing a temporary shortage in available dwellings, he said.

He added that the scarcity of newly built houses fulfilling CSOK requirements and an excess of demand over supply will push the prices up, at least in the short-term. In the next couple of years, Soóki-Tóth said, he expects that number of sales in the segment could reach the pre-financial crisis level of 180,000-190,000 purchases per year.

New building permits have mainly been issued in Budapest and in the biggest towns of Hungary, the analyst said. He added that homes purchased with the CSOK subsidy will most likely be found in more affordable parts of Budapest and surrounding areas, as well as countryside settlements, especially those in the area of industrialized cities.

While the CSOK subsidy is tempting for homebuyers, Soóki-Tóth said consumers would be wary when applying for the HUF 10 million subsidy, and especially the additional HUF 10 mln loan. “As experience of the crisis is still close, those who went through losing their homes or saw close acquaintances go through such hardships will be careful,” he explained.

Eligibility increased

The initial version of the subsidy last year offered a possible grant of only HUF 2 million, and apparently did not attract much interest. By January, more attractive conditions were added to the program, and the most recent changes were being put in place on February 15. The pro-family subsidies are given to couples who have children, or plan to have children in the next ten years. Those who take the grant on the assumption they will have children, but do not “deliver” in the end, will have to repay the grant with a steep penalty.

As Soóki-Tóth explains, the maximum allowance is a one-off payment of HUF 10 million (for those having three children) and the possibility for a further state subsidized loan of up to HUF 10 million. Those with one or two children get smaller subsidies on a sliding scale.

Applicants have to meet rigorous conditions to be eligible for the subsidy.

Aside from having, or committing to, from one-to-three children, the newly constructed house may not be smaller than 90 sqm and a purchased apartment must be at least 60 sqm. According to the new regulation, state support can only be used for dwellings having a building permit as of July 2008.

Dénes Szabó, a partner at the law firm of Taylor Wessing in Hungary.

According to Béla Kappéter, head of communications at FHB Bank, couples committed to having two kids are eligible for HUF 2.6 million in support, but the size of the purchased property may not be smaller than 50 sqm. For one child, the subsidy is HUF 600,000 and the minimum property size is 40 sqm. The scheme can also be used for resale houses and flats, though with considerably lower state support, said Kappéter.

Another condition for the grants and loans is that the maximum price per square meter may not be more than HUF 350,000, and the ceiling of the total purchase price is HUF 35 million.

2016. 02. 24. 20:24

2Business BBJ

COMPANY NEWS thyssenkrupp to build €100 mln automotive plant in Hungary Germany-based technology group thyssenkrupp will build a new automotive components plant in Jászfényszaru, just east of Budapest, with an investment of €100 million, according to a press release issued by the company on February 23.

Construction of the new plant, which will produce electronic power-assisted steering systems and cylinder head covers with integrated camshafts from 2018, is set to begin in the spring of this year, the press release noted. It is anticipated that approximately 500 new jobs will be created at the site in the coming years to accommodate an increase in large orders from international OEMs. “This investment follows our strategy towards standardization and cost optimization in the automotive components business. For the first time in Europe we are localizing production of two different technologies at one site. That will be an immense help in offering competitive cost structures,” said Dr. Karsten Kroos, CEO of thyssenkrupp’s components technology business.

“Hungary offers good conditions for our growth plans. Its central location, good infrastructure and highly skilled labor force are the main reasons for expanding our business activities in Hungary,” added Kroos. Thyssenkrupp currently operates a software development center for steering technology in Budapest, where it employs approximately 400 software engineers, and it also opened a front and rear axle assembly plant for Audi Hungaria in Győr, northwestern Hungary, in 2013.

Deutsche Telekom to open region’s first data center in Hungary Telecom giant Deutsche Telekom AG, which is the parent of Hungary’s Magyar Telekom, is planning to establish the first data center for its European network in Hungary by the end of the second quarter of this year, the company announced on February 22 in Barcelona, Hungarian news agency MTI reported.

The Hungarian data center is expected to provide high-security e-mail services as of this fall, MTI reported. Deutsche Telekom expects the data center to be the first to provide services to all the European subsidiaries of the company, said Claudia Nemat a member of Deutsche Telekom’s management board. She added that the network would be further expanded with other data centers in Europe by the end

BBJ_2404_biz.indd 8

of 2020, MTI reported. The company’s so-called “Pan-Net” network allows the use of a cross-border, standardized infrastructure framework, according to MTI. Local units of Deutsche Telekom will be able to choose from a central catalogue that will employ the service modules required for their own markets, MTI added.

Invitel receives IaaS certificate from Cisco The IaaS cloud service of Hungarian telco Invitel was awarded a Cisco Powered IaaS certificate, as well as the Cisco Cloud and Managed Services Advanced Partner qualification, according to a press release issued on February 19. The certificate is important for Invitel, the firm said, as the company places great emphasis on the continuous development of cloud services.

Invitel said that the certificate it received would show that its cloud services conform not only to Hungarian legislation but also to the strictest international standards, the press statement said.

“Cloud-based solutions are living their golden age, therefore, as a leading cloud service provider we find it extraordinarily important to provide our users with the most effective usage for our technologies,” Áron Javorniczky, Invitel’s chief operative director of the corporate and wholesale business unit, said. “I consider Cisco Powered IaaS an important milestone”, he added.

Four U.S. deals could create 1,800 new jobs in Hungary Agreements reached by a Hungarian delegation in the United States with four U.S. companies on investment projects in Hungary are expected to create 1,700-1,800 jobs in the country, Hungary’s Foreign Affairs and Trade Minister Peter Szijjártó said. Speaking on state-owned all-news channel M1 after returning from America the minister, who led the delegation, said that the investment projects would be realized in the automotive, IT and services sectors, although Szijjártó did not provide any further details on the investments, Hungarian news agency MTI reported.

ezTrade completes HUF 904 mln server park Hungary’s ezTrade has completed a HUF 904 million server park in Százhalombatta, near Budapest, the

Hungarian Mercedes-Benz factory completes 500,000th car

Employees at the Mercedes-Benz factory in Kecskemét posed next to the 500,000th automobile produced at the plant – a Mercedes-Benz CLA model – on February 15, according to a press release issued by the company. The plant currently manufactures vehicles for export to 180 countries and for a growing local market, the press release said. Hungarian Prime Minister Viktor Orbán, the mayor of Kecskemét, and the state secretary of the National Economy Ministry, attended the ceremony. “Thanks to the success of the team at the Kecskemét MercedesBenz factory and its products, we expect very good prospects for the future,” said the newly appointed CEO of Mercedes-Benz Manufacturing Hungary Kft., Christian Wolff, who added that developments are underway through a €15 million investment to expand the logistics hall. The project is due to be completed by this summer. The plant in Kecskemét, in central Hungary, opened on March 29, 2012 and currently has a headcount of approximately 4,000.

cloud computing company told state news agency MTI. ezTrade won a HUF 271 mln European Union and state grant for the investment. The server park, built next to the company’s existing park in the GIMA industrial park, is expected to boost annual revenue by HUF 100 mln.

Additionally, the company plans to make ten new hires. At present, headcount stands at 22. In 2014, ezTrade had earnings of HUF 22 mln on revenue of HUF 473 mln.

Wizz Air receives 2016 Value Airline of the Year by ATW Hungarian low-fare airline Wizz Air has been named 2016 Value Airline of the Year by Air Transport World (ATW), with CEO József Váradi receiving the title at ATWʼs 42nd Annual Airline Industry Achievement Awards gala dinner in Singapore, according to a press release issued on February 18. Wizz Air received the award in recognition of the airline’s excellent performance, superior service and outstanding achievements over the last year, according to the press release.

Accepting the award, the company noted that it had carried more than 19 million passengers in 2015 representing a 22%

increase over 2014, while adding 11 new Airbus aircraft and creating some 400 new jobs, bringing its total headcount to 2,600, the press statement noted.

“We are honored to be recognized with this prestigious award. With several remarkable milestones achieved, 2015 was taking us to new highs in all terms of our operations,” Váradi said.

Last logistics unit of Rozália Park let to Gimek JLL assisted the landlord in the leasing of the last industrial unit at Rozália Park to air treatment company Gimek Zrt. who let a 9,380 sqm standalone building, according to a press release issued by JLL on February 17. Rozália Park has a total leasable industrial area of 57,000 sqm and houses tenants primarily from the logistics sector. The park is located on the M1 highway in Biatorbágy and boasts excellent visibility and accessibility, according to the press release. The new tenant, Gimek, is a manufacturer of air conditioning and air treatment systems.

JLL was the exclusive representative of Challenger Holding. Colliers represented Gimek Zrt. during the lease transactions, the press release added.

2016. 02. 24. 20:27

www.bbj.hu

2 Business

Budapest Business Journal | Feb 26 – March 10, 2016

Szentkirályi, Kékkúti close first year of joint operation with profit Hungarian mineral water bottlers Kékkúti Ásványvíz and Szentkirályi Ásványvíz had revenue of HUF 15 billion in the first year after their merger, up 13% from the two companies’ results in the previous year, Central European Mineral Water Holding (CEMW), the owner of the two companies told Hungarian news agency MTI on February 16. In volume terms, sales came to 360 million liters of mineral water in 2015, up 14% from a year earlier. At the same time, Hungary’s mineral water market grew 10.5% in value terms, according to Nielsen. CEMW said Kékkúti has become profitable again after several loss-making years and Szentkirályi has strengthened its position as a result of the integration. The company plans to invest millions of euros in Kékkút, western Hungary, this year, the owner added. CEMW was established in 2015 by Italy’s Pasquale family, the owner of the Karlovarske Mineralni Vody Group, and by Levente Balogh, the owner of Szentkirályi Ásványvíz. CEMW Holding acquired Kékkúti Ásványvíz in March 2015 and Szentkirályi Ásványvíz in April 2015.

ULT Magyarország to buy less tobacco this year Hungarian tobacco processor Universal Leaf Tobacco Magyarország is planning to reduce its tobacco-growing areas this year, as well as the amount of tobacco it buys from producers, due to oversupply on the market, CEO Imre Bittner said on February 16, according to Hungarian news agency MTI. According to the CEO, the company purchased 6,100 tons of Virginia and Burley tobacco from Hungarian producers last year, a 30% drop as compared to the preceding year. Nevertheless, a large part of the harvest from 2014 and 2015 is still stored in warehouses as unsold stock, the CEO added. Bittner said that ULT Magyarország plans to buy 3,500 tons of Virginia and 1,000 tons of Burley tobacco in 2016 as compared to the earlier purchase of 5,500-6,000 tons and 2,500 tons, respectively.

Hungarian startup invited to conference in U.S. Whitereport.hu mediabrowser, a database that summarizes media market ownership and financial data, has been invited to Collision, a technology conference for startups in the United States held at the end of April, according to a press release issued by the company on February 16. “Whitereport. hu mediabrowser uses independent sources to collect media market data in a unique database and make it available online. It aggregates the media data and commercial information of television stations, radio, print, online, outdoor and cinema-based media, with reliable ownership information on the companies and their financial data, providing quarterly data on media services, changes in their ownership and many other markers of interest, as well as yearly information on their top-line financial performance,” the press release said.

In the case of Hungary, Whitereport.hu collects data from 11,000 media and 6,700 media operators and makes it available online. Whitereport.hu, which has been operating in Hungary since 2011, hopes

BBJ_2404_biz.indd 9

to launch its mediabrowser on the international market at the startup event, one of the fastest growing technology conferences in the United States, the press release noted. More than 7,000 attendees from 75 countries are expected to attend the event, which will bring together investors, startups and mentors.

09

HIPA sets a record

Tesco Hungary online employees threaten to go on strike Tesco’s entire online division in Hungary is planning to go on strike in March if all of the workers do not get pay raises, Hungarian daily Magyar Idők reported on February 16. Due to the rapid rise in popularity of Tesco’s WebShop, Tesco headquarters in London reportedly said it would increase the pay of online order delivery personnel working in Central Europe by as much 14%, according to Magyar Idők. Tesco Hungary, however, has only expressed plans to increase the pay of delivery personnel in Budapest and Győr, where most of its deliveries take place, while not increasing pay in other regions of Hungary, according to the daily.

Tesco believes that in those cities the workers don’t have an incentive to quit the company, because they don’t have better job options elsewhere, Csaba Bubenko, Chairman of Trade Union of Independent Workers reportedly told Magyar Idők.

During Tesco’s fiscal year, which ends in February, revenue’s are expected to be around HUF 9 billion, roughly 10-15% higher than in the previous year, with 80% of Tesco’s online sales taking place in Budapest, the daily reported.

Schafer-Oesterle completes HUF 900 mln investment in Hungary German car interior company SchaferOesterle has completed a HUF 900 million investment at its base in Bonyhád, southwestern Hungary, managing director István Frei told Hungarian news agency MTI on February 12. SchaferOesterle installed four industrial robots and production lines at the base, Frei said. The company won a HUF 443 mln European Union grant for the investment, he added. Last year, Schafer-Oesterle raised headcount from 130 to 174, Frei said.

Revenue rose to HUF 2-2.5 billion last year from HUF 722 mln in 2014, he added.

MOL to ramp up production, maximize portfolio value Hungary’s MOL plans to ramp up production and “maximize economic value” of its portfolio, the oil and gas company said in a production update published on February 24.

Production is set to increase further to 105,000110,000 barrels of oil equivalent per day in 2016 and 2017, and to 110,000-115,000 BOEPD in 2018, MOL said in the update, released at the same time as its fourth-quarter earnings report. “The majority of MOL’s portfolio has the potential to generate cash even in the currently low oil price environment,” MOL said in the update, adding that it would “pursue a systematic approach to enhance production rates and maximize recovery in high-margin CEE fields”. MOL said it would continue development programs in low-cost fields in Russia and Pakistan, while ensuring increased contribution from recently sanctioned development and infill projects in the UK. Efficiency improvements across the whole organization are expected to generate cost savings of $80-100 million, MOL said.

Foregin Minister Péter Szijjártó describes the work of HIPA, as the agencyʼs president, Róbert Ésik, listens, at the February 11 press conference. (Photo: MTI/Noémi Bruzák)

Tasked with encouraging FDI, the agency said it channeled more than €1.4 million in working capital into the country last year, and adds that this year looks equally promising.

CHRISTIAN KESZTHELYI

As it worked to bring in foreign investment, the Hungarian Investment Promotion Agency (HIPA) had a record year in 2015, giving advice and support on 67 successful projects, an improvement of 12% on the year before, the agency announced.

“Out of the 67 investment projects, 21 companies entered the Hungarian market for the first time, while 46 companies already active in Hungary decided to reinvest in the country,” Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó told a February 11 press conference summarizing the achievements of HIPA in 2015.

In all, the record number of projects that the agency worked on last year channeled more than €1.4 million in working capital into the country, according to HIPA. And even greater activity is anticipated for 2016.

Established by the government to provide professional help to foreign companies looking to invest in the country, HIPA works with a broad range of firms. Of the 67 projects it supported last year, 17 were in the automotive sector, while the SSC sector saw 12 investments and the ICT sector drew in seven, HIPA noted. German companies made the most investments over the year, financing 31% of all projects: 14 were of German origin and 11 from the United States, HIPA said.

Szijjártó noted that the work of HIPA is in keeping with his own emphasis on promoting economic cooperation through the foreign ministry. “The point of Hungarian diplomacy is to validate the economy and trade interests of Hungary abroad,” said the minister, adding that there is a “grim battle on the international

markets, and we need to work hard to draw investments into Hungary”.

Second place in FDI “Based on data available for us we can say that, in the Central European region, the Hungarian Investment agency proved to be the most successful over the last year,” Szijjártó told the press conference. With FDI at €8,263 per capita, Hungary has the second highest income of foreign investment capital per capita in the region; only Czech Republic performed better. The foreign minister also stressed that, as foreign direct investment arrives in the country, its export activities grow.

“In the past three years, the exportto-GDP ratio grew by 5%,” Szijjártó said, adding that exports have never been so high and that the trade surplus reached record levels over 2015.

Preliminary data released by Hungary’s Central Statistical Office (KSH) shows the trade surplus grew to €643 mln from €246 mln in December 2014, with exports up by 7.3%. For the full year, the trade surplus was €8.1 billion, up from €6.3 bln a year previously, while exports increased 7.4%, and imports rose 5.6%, according to KSH. HIPA’s success in promoting this country has apparently been noticed overseas as well. Site Selection magazine, which is chiefly aimed at American investors, ranked Hungary as first on its list in the Eastern European region – on the absolute list, as well as on the number of running projects per capita, HIPA noted.

“The agency is planning to place more emphasis on the needs of its clients, as well as offering a renewed support system, to boost investment in Hungary from abroad, and make this year more successful than 2015,” HIPA President Róbert Ésik said at the press conference.

He added that the agency is currently negotiating on 169 active investment deals with foreign companies. Under the current parameters, if the deals go through, 27,000 jobs could be created as a result of investments totaling €4.6 mln. Thus far, these companies have not made final decisions on investing, but Ésik said he believes many will do so in the near future.

2016. 02. 24. 20:27

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Budapest Business Journal | Feb 26 – March 10, 2016

CEU BUSINESS SCHOOL

Product lifecycle management: A natural part of business life William Lloyd Director of EMBA Programs Operations CEU Business School

In Hungary, it has been my experience that many small- and medium-sized businesses and other organizations are not aware of modern PLM methodologies and tools, or they use them improperly. Many lack the knowledge, expertise, experience and data necessary for successful adaptation and utilization.

PLM is all around us, affecting and driving our behavior and our performance An expert describes in the continuously changing business world and in our professional life. Those engaged his experience, and the in R&D, product management or software challenges, of managing development are regularly involved in a huge variety of industry-standard, the various phases of company-specific, and departmental or functional processes for managing product development. lifecycles. Best practices, benchmarking techniques, checklists and many other tools and methods are available, including some In my professional life, I have always highly sophisticated ones, like Lean or Six been thrilled with the opportunity to Sigma. Product launching programs, timework on new things, creating, developing, to-market plans, competitive analyses, testing, revising and implementing profit projections and many more business products and services – in short, inputs and measures are needed for managing product life cycles. Product success. All these efforts must be focused lifecycle management (PLM) is the series on customer satisfaction, the “holy grail” of of steps applied to a product as it goes lifecycle management. Applied properly and through development phases, including done well, the main benefits can be shorter concept, design, commercialization and time-to-market, cost reduction and robust phasing out. Sounds familiar, doesn’t it? but flexible design. Neglect or ignorance of ADVERTISEMENT

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good PLM practices may be punished with missed customer needs, unnecessary costs, poor design and quality, and, ultimately, going out of business.

Data visibility, process coordination, and an especially collaborative culture are needed for professional PLM. At one of my former employers, an electronics equipment multinational, I supported the development of products that could be applied to different markets and customer applications, and that were interconnected with a variety of hardware and software. Product lifecycles often grew and extended quickly and had multiple development curves over time.

PLM proved to allow for a well-integrated approach across multiple functions, incorporating needs assessment, marketing, business intelligence, product design, manufacturing, sales and logistics. Data on customers, competitors, the market, regulation, etc. were collected and analyzed continuously. In the evolution from the early growth stages to maturity, I supported specification and design changes, positioning tactics, market maneuvers, cost reduction efforts, and decisions on location and distribution. As lifecycles matured and started to decline, we had to prepare and implement transition plans for moving from one product to another, to keep the company’s overall performance high.

Team activities, processes and systems had to be coordinated and harmonized in each phase to maximize efficiency and reduce waste. Effective PLM required a devoted and supportive organizational culture of transparency, to foster collaboration, strategic and operative focusing, cross-functional thinking, intensive communication, idea sharing,

team spirit, and tolerance for stress and frequent changes. People and teams were rewarded for their ideas and for actions that extended product lifecycles, created new products and applications, and tapped into completely new markets.

In Hungary, it has been my experience that many small- and medium-sized businesses and other organizations are not aware of modern PLM methodologies and tools, or they use them improperly. Many lack the knowledge, expertise, experience and data necessary for successful adaptation and utilization. Those working for multinationals may feel that their access to data independence in decisionmaking is limited. Many professionals are locked in functional or geographic silos, and do not see the whole picture.

They need to understand that worldclass PLM is a key factor of international competition nowadays, and leaders have to do their best to promote and harness the benefits of it.

The public sector may also benefit from PLM. There has been progress in government policies towards customer care and service design in many parts of the world. National and local governments must acquire the methodologies, tools and skills mentioned above. Public services affect our life directly and also have their own lifecycles. Needs assessment, design, commercialization, regular improvement, phasing out, and service portfolio management – all these concepts are relevant in a public sector context.

They can even contribute to a country having an increasingly competitive global position. We all can benefit from process transparency, data availability, intensive communication, idea sharing, and a culture of trust and collaboration.

William Lloyd is director of operations for Executive Masters of Business Administration Programs at the Central European University (CEU) Business School. This column is part of a continuing series of opinion columns from experts at the CEU Business School in Budapest. The opinions stated here do not necessarily reflect those of the Budapest Business Journal.

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Increased industrial stock needed to meet demand

Hungary has near record lows in vacancies for logistics and light industry parks.

GARY J. MORRELL

More industrial development in Hungary is required to meet increasing demand, with Poland and Czech Republic dominating Central European market activity. Demand from occupiers is very strong and almost all the new space coming to market is occupied within a matter of months. Over the past five years speculative industrial construction has virtually ceased to exist, as developers have their hands full trying to satisfy demand for new buildings, although a limited number of speculative developments are now underway across the region (incorporating Poland, Czech Republic, Slovakia, Hungary, and Romania). New industrial supply for Central Europe for 2015 is put at 1.54 million sqm, a record annual delivery since the economic downturn of 20078. Total class “A” industrial and logistics stock in Central Europe stands at 20 million sqm, compared to 24 million sqm in Germany according to Cushman & Wakefield (C&W).

“Last year Poland and Czech Republic were the dominant countries in terms of new construction (together 1.4 million sqm), while a recovery was recorded in Slovakia with 80,000 sqm last year.

Development in Hungary and Romania has been minimal in recent years,” said Ferdinand Hlobil, head of CE industrial at C&W. Average vacancy for Central Europe has been falling since 2009, and had dropped as low as 6.8% as of the turn of the year as take up has outperformed development.

“The overall vacancy rate in Hungary is at a historically low 10.6%, while looking at purely warehouse space we are talking about sub-10% levels. Automotive logistics, electronics and distribution are still on top of the activity list, but e-commerce, as elsewhere in Europe, is

BILK industrial facility.

Prologis Park Hegyeshalom on the Hungarian-Austrian border. gaining momentum. The emergence of large e-commerce companies such as Amazon on the Hungarian market is still awaited, however,” commented Gábor Halász-Csatári, head of industrial at C&W Hungary.

Availability in Hungary is seen as very fragmented and any company looking for 10,000 sqm of space would need to split this across two or three units due to a limited supply of large contiguous units. There is currently one industrial construction project ongoing in the Budapest area, a 22,000 sqm built-to-

suit scheme in Alsónémed that is due to be delivered this year.

Eyeing the market A number of regional industrial developers and logistics park operators are considering entering the Hungarian market. Prologis currently has the biggest market share of developers with 588,000 sqm; the company has begun the development of an 8,000 sqm buildto-suit facility (DC2) at Prologis Park Hegyeshalom on the Austrian border

for the logistics provider, Fiege. Prologis is followed by: BILK at 198,000 sqm; Logicor, 119,000 sqm; Wing, 108,000 sqm; Goodman, 67,000 sqm; and CA Immo with 62,000 sqm, according to the Budapest Research Forum (BRF).

The entry of CTP into Hungary is a further indication of the improvement in the industrial sector. CTP has extended its presence to Hungary and Romania, having already developed parks across Slovakia; the Hungarian portfolio comprises two purchased assets consisting of the newly renamed 34,000 sqm CTPark Üllő on the M0 Budapest ring road, and the 6,000 sqm CTPark Tatabánya warehouse and production facility.

In terms of development, the Central European market is regarded as undergoing diversification as developers look to differentiate their respective strategies. Thus companies such as Goodman and Panattoni are focused on developing new projects, while CTP, P3 (PointPark Properties), and Prologis are constructing parks and retaining ownership or expanding their portfolios by acquiring other facilities. A third group are investors – such as Logicor – with a preference for acquiring completed parks.

Poland continues to be the leading CEE industrial market; total quality industrial stock in the Warsaw area alone stands at circa three million sqm, with around ten million sqm across the country. Czech Republic has an industrial and logistics stock of more than five million sqm, while Hungary has 1.85 million sqm.

One concern regularly expressed with Hungary is the lack of development in regional cities, unlike Poland, Czech Republic and Slovakia. In general, manufacturers have a preference for secondary cities and from a positive perspective Central Europe has lower labor costs than Western Europe according to Eurostat and C&W. The majority of development outside of Budapest is owner-occupied, however, with companies such as Audi developing its own facilities. Hungary is very Budapest-centric and the quality of the motorway network allows companies to establish themselves around the capital.

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Hungarian the November, In plans to expand tills to government announced use of electronic the mandatory taxis, laundries ANIKO FENYVESI include auto mechanics,offices. had and currency exchange end of 2014, NAV with their taxes on earnings Already by the of cases As companies file most should find that encountered thousands companies in the made last year, fined several huge differences shortfalls and following a series there are not the new regulations, for failing to complyNAV also noted a by amount owed under experts interviewed of targeted audits. in VAT revenue of according to tax tabs on trucks.

Journal. of the subsequent increase authorities keep the Budapest Business billion by the end regulations help enforcement measures come nearly HUF 200 according more EKAER Still, stricter in the years to tills’ operation, some firms pay most to have higher burdenslose their tax losses first year of the may mean that that the measure previous tax before. And they will to reports. It appears of tax losses in Minister Mihály this because than they did explains Antretter. probably already great deal to benefit from what Economy from previous years,” that are able reduce amount periods would be able “shadow economy” companies have was changed increase in the calls Hungary’s Conversely, companies experienced an involved in reporting measure, but the legislation Antretter of of the new gross Varga success.

Erzsébet to take advantage lower income tax is a resounding of administration the right amount on last year,” explains will have Hungary. difficult tax consultants Accacesystems, Hungary tax credits year, Antretter adds. The income and paying with the more tax electronic monitoring burdens this tax credit idea, time. Complying Like many other to carry forward downside is that the grosswith before- Increased burden is a good pay administrative allows businesses to businesses declarations of elsewhere as those who missed VAT several losses by postponing expectation that only applies exceeding that of previous While experts say that the experts say, punctually for the majority on the tax profit far will not have to still represent accurately and benefits. those losses, further profitable in coming years. “Such companies on the portion payments can enjoy some this could be hardwould be more from years in a row income tax of unpaid taxes, proposed interviewed are about they The firm could deduct a loss the The experts through filing pay corporate times higher than reduced years. invoicing generalizations on its current profit that is five pressed to make should expect to pay several years ago year, to reduce their of the Antretter explains, introduction of online corporate measure in previous years,” in fast growing linked directly to NAV. This to follow whether companies for a very profitable that companies to income. the authority more or less. to five adding are the most likely would allow business. For example taxable as it does with limitations – down will sectors, such as IT, “It depends on the benefit from tax loss in real time, just “Now there are growth.

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2016. 02. 24. 20:27

Report: Hungarians must be more watchful of economic crime’s risk PwC queried thousands of executives worldwide, including those at 95 leading Hungarian companies, for its Global Economic Crime Survey 2016. The report found unwarranted complacency among firms in this country.

Has your organization experienced any economic crime within the last 24 months?

35% 30% 25%

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Even though one-in-four Hungarian companies say they have experienced some type of economic crime in the last two years, firms here seem insufficiently aware of the risks – especially when it comes to cybercrime, according to PwC’s analysis of their newly released survey.

Compared to the last issue of the survey the occurrence of cybercrime remained at the same level (17%) in Hungary, whereas globally this figure is sharply higher (32%), according to a report on Hungary produced from PwC’s Global Economic Crime Survey 2016, which was published on February 25. This is surprising and raises red flags that companies in Hungary might have been compromised without even knowing it, according the report.

Increased awareness is needed in a changing business ecosystem in which the vast majority of documents, commu-

38%

40%

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CEE

nication and transactions has gone digital.

As they have done in past years, PwC put together its Global Economic Crime Survey 2016 by surveying business leaders to discover awareness, perceptions and impacts of economic crime. The largest survey of its kind, this year’s study is based on responses from 6,337 organizations in 115 countries, including 95 leading companies within Hungary.

After analyzing the survey results for Hungary, PwC’s experts seemed to feel that Hungarians were not as aware as they should be of economic crime.

“The Hungarian results paint a more optimistic picture than global and regional figures about the incidence of fraud. This could be because some companies have been compromised without even knowing it, while others may be overconfident about the

Global

robustness of their existing control environment,” said Csaba Polacsek, Executive Director, PwC Hungary, Financial and transactions advisory services.

A worrying trend

While the survey found that the reporting of economic crime in Hungary did not change since the previous year, the analysts did not see this as a reason for complacency. This actually masks a worrying trend - in the context of an evolving risk landscape, organizations might face sophisticated fraud schemes that run undetected for several years, the analysis said. These latent and long-running fraud cases represent the most dangerous and costly threats, it added.

The lack of awareness would seem to be especially acute in the area of cyber-

Cybercrime development

Do you have a formal business ethics and compliance program?

35%

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crime, as 55% of the respondents in Hungary said that the risk of cybercrime had not changed in the last year.

This underlines the risk of underestimating cybercrime threats in Hungary, the analysis said. If there is one take away from this survey it is the change in perception of cybercrime – cybercrime is no longer just an IT problem, it should rather be considered a fundamental business problem, the report said.

The most common types of ecomic crimes reported in Hungary were misappropriation (46%), bribery and corruption (38%), tax fraud (21%), cybercrime (17%) and procurement fraud (17%).

In general, those committing fraud worked within the company: “The share of fraud is heavily weighted toward of internal perpetrators (46%) compared to external perpetrators (33%),” the report said.

The survey identified the most likely characteristics of an internal fraudster: male, 31-41 years old, has 3-5 years of service with the company and is a university or college graduate.

A good remedy for these problems is the creation of a business ethics and compliance program, as well as a code of conduct. The analysts were glad to report that this is becoming more common in Hungary.

One positive message is that more than 81% of survey participants have a formal business ethics and compliance programme which is in line with the CEE and global average (identically 82%), the analysis said.

43%

CEE

4%

44%

Global 0%

BBJ_2404_biz.indd 12

HU

CEE

Global

53% 0%

10%

20%

30%

40%

50%

60%

2016. 02. 24. 20:27

Csaba Polacsek, Executive Director, PwC Hungary, Financial and transactions advisory services: On Economic crime: “In a rapidly evolving economic and technological environment, with the adoption of new business models, increasingly complex and sophisticated forms of fraud are emerging.”

On Compliance: “In terms of compliance, there is still room for improvement for Hungarian companies.

It is worth recalling that while compliance does not readily generate revenue, it ultimately affects the bottom line: by assessing and managing risks, it is an important safeguard against losses.

Successful compliance also requires involving the broadest possible range of staff already in the implementation phase.”

How does your organization ensure that your compliance and business ethics program is effective?

84% 79% 76%

Internal audit Management reporting

54% 54% 42% 41% 42%

Whistleblowing hotline reports 31%

External audit

Other 0%

HU

37% 40%

CEE

9% 6% 8%

Other internal monitoring Other external monitoring

65%

Global

1% 2% 2% 4% 4% 4%

10%

20%

30%

40%

50%

60%

80%

90%

If there is one take away from this survey it is the change in perception of cybercrime – cybercrime is no longer just an IT problem, it should rather be considered a fundamental business problem.

Tibor Hurton, Forensic Manager at PwC Hungary: On Detection methods: “Rapid detection of fraud is critical for companies to minimize potential losses.

Technological advances offer new techniques to detect fraud and mitigate risks.

These techniques include riskbased due diligence, focused fraud and corruption risk management, intelligent fraud monitoring, anonymous ways to report economic crime, and comprehensive fraud prevention measures.”

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In the last 24 months, how often has your organization performed a fraud risk assessment?

20% 21% 22%

Not at all 6%

Once

8%

10%

Annually

29 31%

34%

HU CEE Global

5% 6% 6%

Every six months

6% 10% 10%

Quarterly 4%

More often

5%

4%

17%

Don’t know

18%

0%

5%

10%

15%

20%

20%

25%

30%

35%

40%

All data on these pages from: PwC Global Economic Crime Survey 2016 (www.pwcresearch.com).

2016. 02. 24. 20:27

3Special Report BBJ

Engineers

Engineering a labor supply As growing domestic demand and the attraction of work abroad make engineers a precious commodity here, the auto industry is becoming more creative in its efforts to attract and keep talented technicians.

ANIKO FENYVESI

Hungary has long been an attractive location for multinational companies seeking to tap a sizable pool of low-cost technical experts, but that pool is no longer as deep as it once was.

With the country’s automotive production booming, there is a growing demand for capable engineers at Hungary’s four automakers and the hundreds of local suppliers that serve them. Meanwhile, the supply of engineers has been shrinking, as many professionals leave the country in search of greener pastures elsewhere in the European Union.

To remain competitive in the quest for talent, firms in the automotive industry are providing on-the-job training and keeping engineers interested with attractions like a robotic park where creative minds can experiment.

According to people in the industry, part of the problem is that Hungarian schools are not producing enough engineers. In Germany, the percentage of graduates with engineering qualifications is in the double digits; in Hungary it is still only about 6%, according to András Somogyi, country HR manager at the Bosch Hungary Group, a firm that employs close to 1,000 engineers here.

And those who complete engineering training in Hungary may not have done enough to prepare for the working world. “Not many final-year students or new graduates have clear goals, possess very professional qualities, speak foreign languages or spent their university years doing any more than the ‘minimum’,” according to Somogyi.

Rather than wait for Hungary’s schools to do more, the automotive industry has begun to provide its own schooling. “We recognized this concern early on and are doing what we can to provide a wide array of internal and external, customizable training programs to support the development of our staff,” says Audi Hungaria’s communications department.

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Dual training at the Audi plant in Hungary.

Dual training keeps students close

When it comes to schooling candidates, many automotive companies find that dual training is an effective way to get young talent on board before it hits the job market. Dual training students work in a firm as part of their practical studies while they are still in school. They gain experience with on-the-job training programs, which also usually involve a theoretical component. These students have the chance to develop soft skills that are important for the working world but are usually not taught in a traditional classroom. What’s more, dual education programs provide connections between companies and students before graduation, which is an excellent environment for recruiting.

The Dual Training and Methodological Center at Kecskemét College funded

by Mercedes-Benz was set up four years ago, just as Mercedes was entering the Hungarian auto-manufacturing sector. “Dual training programs and internships ensure a continuous, well qualified supply of young people to our plant, and they are based on the successful German model,” explains László Ács, HR Director at Mercedes-Benz Manufacturing Hungary. “Through this program, students can supplement their abstract knowledge with compulsory practice periods, and gain knowledge and experience.”

Audi Hungaria also has a dual training program at the Széchenyi István University in Győr, and as of 2015 that program was augmented with its own faculty.

“We recognized this concern early on and are doing what we can to provide a wide array of internal and external, customizable training programs to support the development of our staff.”

According to the company, this program provides higher education in a hands-on industrial environment, where students can acquaint themselves with the company’s processes, products and career opportunities. Those familiar with the program say it really helps graduates get off to a running start when the company eventually hires them. And the firm is hiring: Audi’s headcount now stands at 11,500, up from the roughly 100 when Audi first opened in Hungary in 1993.

Opel Szentgotthárd offers dual training too, but the carmaker gets a jump on introducing itself to candidates by establishing relationships with prospective employees well before ideas of careers are on the horizon. The company has a model for engaging with primary school students and their parents and remains in contact as students move towards graduation from university, explains Delinke Kovács, internal communications specialist at Opel.

Finding the needle in the haystack

Among the many avenues for attracting new talents, traditional approaches include maintaining a presence at job fairs, electronic ads, posters and PR campaigns at the country’s many universities.

These methods can be effective, and automakers still use them as a way to connect with candidates.

But the more creative and proactive methods can get better results. Siemens Hungary, which is present in the industrial, infrastructure, energy and healthcare sectors, as well as assisting in the digitalization of the automotive industry, among others, is always looking for new and innovative channels to reach out to prospective employees.

“We have an employee recommendation program in which our colleagues can make recommendations for open or soon to open positions,” explains Gábor Tóth, Head of HR at Siemens.

Bosch maintains a presence at colleges and universities in Hungary through engineering lecturers that employ the company’s own teaching materials, allowing students to acquaint themselves with the latest developments at the company before they even leave school, says Somogyi of the Bosch Group.

He adds that competitions also entice talented students to test their skills.

These methods serve a similar purpose to dual education whereby the student feels a connection to the company well before he or she has chosen a specific career path.

2016. 02. 24. 20:28

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3

Budapest Business Journal | Feb 26 – March 10, 2016

15

EXPERT OPINION

Nokia takes good care of its local staff Head of Global Technology Center Budapest Nokia Solutions and Networks Kft

Above: Getting hands-on experience at the Bosch R&D center in Budapest. Below is dual training at Mercedes in Hungary.

“Dual training programs and internships ensure a continuous, well qualified supply of young people to our plant, and they are based on the successful German model.”

Reeling them in and keeping them happy gary’s most attractive employer based on In manufacturing sectors that require a national survey by Randstad involving technical expertise, it’s important to 7,000 respondents,” says Ács. give employees the chance to learn and Like many other automotive industry grow, for example by challenging them suppliers, Bosch recognizes the imporand granting access to state-of-the art tance of keeping staff motivated and proequipment. viding them with ample opportunities to Present in Hungary since 1991, the gain international experience – as well as Hungarian unit of Japanese car manufac- access to a wide spectrum of professional turer Suzuki works with Japanese tech- career building opportunities within the nology and boasts one of the country’s company, explains Somogyi. This is comlargest robot parks, which may be of par- plemented by language training, study contracts, more than 100 ticular interest to students specializing in mechatroncourses, PhDs, scholarships ics, explains Viktória Ruska, “Our plant and foreign experience PR Manager at Magyar placements. was ranked Suzuki. “We were the first Jabil Circuit Magcar manufacturer in Hun- as Hungary’s yarország is a U.S.-based company that provides gary to employ full-scale engineering, manufacturproduction, and this offers most attractive an exciting challenge for ing and supply chain seremployer based on vices for a number of indusanyone that comes to work for us,” she adds. a national survey.” tries and is a key supplier of Ensuring continuously the auto industry in Hunvaried and challenging gary. The company is keen tasks and adjusting to the career paths on acknowledging the achievements of and needs of employees are also key in its staff and provides opportunities as retaining staff, says Tóth at Siemens. part of a program entitled “Delivery Best “Quality and innovation are very impor- Practices” which allows staff to travel to tant to us and it’s impossible to achieve the United States to present their ideas this without talented and dedicated engi- to company leaders and reap the rewards neers for whom we can provide profes- of their own accomplishments while also sional challenges and engaging projects building relationships, explains Andrea with long-term career opportunities.”

Cservenné Boros, HR manager at Jabil.

Mercedes-Benz employs an extensive The end result of such foreignbonus system and motivational programs exchange programs may be to help engito help create a long-term stable team in neers get work abroad. But for a short Hungary. “Our plant was ranked as Hun- time, at least, they will be working here.

BBJ_2404_spec_report.indd 15

The local subsidiary of Finnish communications and information technology company speaks to Gergely Mihálka, Head of Global Technology Center Budapest about the company’s efforts to support the development and accomplishments of their local team.

Can you give an overview of the main types of work your office handles here in Hungary?

With over 1,900 employees, Nokia has an extensive team in Hungary serving local and regional customers and contributing to the development of global products and future mobile broadband solutions. In recent years, the company has strengthened its presence through a service center, which provides financial, procurement and human resources support to over 107 countries.

How much of your workforce consists of programmers, IT workers or engineers?

The R&D organization in Budapest is one of the Nokia Global Technology Centers. Our 1,400 engineers develop future-ready technologies. Our main technologies developed in Hungary are IMS (Multimedia Subsystem), Voice Over LTE, MSS (Mobile Switching Server), Cloud Virtualization and Big Data Analytics.

What kind of specialists do you look for most frequently?

We have a complete R&D chain in Budapest: from requirements to software deliveries, including software development, software testing, quality assurance, product management, architecture, technical service & customer documentation.

At the Technology Center we look for engineers, IT-experts, mathematicians and programmers with knowledge of C++, Java, Pearl, among others. A high level of English knowledge is also important.

What does your firm do to find and recruit the kinds of employees you need?

Nokia is one of the main supporters of the higher education of engineers in Hungary through its professional internship program. Our collaboration with universities has strengthened over time and transformed into a comprehensive partnership with three pillars. The first pillar is the aforementioned professional internship program which provides practical experience for university students. The second pillar provides opportunities for students to participate in academic research and development projects and the third pillar is a lecture series on telecommunication topics given by our experts and organized within the university’s timeframe.

What can your firm do to train your employees in specialized skills?

Sharing our knowledge and skills allows us to inspire innovation across our businesses so we can achieve great things together. Our engineers acquire the most up-to-date knowledge of the telecoms industry.

There is also a significant accumulation of 5G research, virtualization, and Data Science knowledge here, and these directions are open to those interested.

We start to train our colleagues from the first day they enter our premises.

Every year we collect the internal needs from both line managers and the competence development community.

We organize internal and external trainings as well based on the listed needs.

Why should young professionals consider working for your firm?

Our company pays special attention to its workers; it is part of our company culture based on our values: respect, achievement, renewal and challenge.

Flexible working hours are provided to all employees. General medical service is available every working day including local doctor services not only occupational health doctors.

Additional free-of-charge services, preventive programs include our stopsmoking program, weight loss program, vaccinations, medical tests required for licenses and psychology consultations.

All employees have access to the Recreation Center for free or can become a member of the 38 Nokia Sport and Hobby Clubs. The company has group insurance contracts which provide insurance coverage to employees, their family members and temporarily employed students. All employees are provided an ergonomic working environment including a friendlier, more casual work environment and team spaces that promote more interaction with co-workers, team members and visiting guests.

NOTE: ALL ARTICLES MARKED EXPERT OPINION ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Gergely Mihálka

2016. 02. 24. 20:28

16

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3

Budapest Business Journal | Feb 26 – March 10, 2016

Recruiting firms: Shortage of t Local recruiters share their secrets for dealing with the shortage of engineers and IT professionals on the job market.

BBJ STAFF

As they seek to maintain a good supply of talented engineers and IT specialists, many Hungarian businesses turn to recruiting firms, but even the human resources experts at these companies acknowledge that attracting top candidates in Hungary has become more challenging.

With demand for the best workers growing, and opportunities from abroad beckoning, local firms have to work hard at finding, and satisfying, the technicians they need, recruiting experts told the Budapest Business Journal.

Apparently the problem is not localized to Hungary.

“There is a major shortage of engineers across Europe,” says Klemens Wersonig, CEO of TARGET Executive Search, a firm with offices in Hungary and around Central and Eastern Europe.

Viktória Kaposvári, head of the search and selection division of ISG Personalmanagement Kft. Hungary also noted the trend, saying: “Nowadays there’s huge demand for experienced professionals in the IT and engineering sector, which means talented candidates can choose from several offers.”

David Young, managing partner of Amrop Kohlmann & Young, said that his client base often discusses this problem.

“After talking to many top managers in manufacturing here in Hungary, I think a number of factors are in play,” he said.

“The educational system is not producing the quality and numbers of candidates modern manufacturers need; labor mobility within the country is not what it should be; and many strong engineers and IT professionals have left the country over the past few years, making the talent shortage even more acute.”

Máté Seres, a senior consultant with the Hungarian office of the Arthur Hunt Group, noted the pressure put on the candidate pool from local automotive companies. “Even if the main automotive companies have good relations with the local universities and they are able to attract the best talents, the Hungarian education system still cannot produce enough professional in such a short period of time,” he said.

For András Lipcsei, managing director of Dr. Pendl & Dr. Piswanger International Ltd., a major factor in the shortage of engineers in Hungary is the success of industry in this country. “In this current period the technology-driven companies are developing at high speed. The automotive and IT industry is rocketing,” Lipcsei said.

“This explains the extensive demand.”

And, of course, as Dr. Patrik Molontay, deputy managing director and head of

BBJ_2404_spec_report.indd 16

András Lipcsei Managing director,

Dr. Pendl & Dr. Piswanger International Ltd.

David Young Managing partner,

Amrop Kohlmann & Young

Dr. PatrikMolontay Deputy managing director and head of executive search, HumanField Consulting

“There are many things a company can do to attract and retain senior managers.

“Only those can stand the competition “A lot of professionals are moving These can include, in addition to a who put a great emphasis on from Hungary to Western Europe, so competitive package, a challenging development, and development the demand for workforce is growing requires highly talented professionals. … and motivating position, career rapidly. In Hungary, even the best planning, international placements, People choose well-known names, big companies must compete against each attractive learning and development brands, and attractive companies more other to have good candidates.” opportunities – and, when moving to frequently. The company should be another part of the country is necessary, visible on the market.” assistance with removal and local choose as a career, rather than industrial accommodation expenses.” executive search at HumanField notes, there are fewer good candidates to meet local needs. “A lot of professionals are moving According to Seres of the Arthur from Hungary to Western Europe, so the Hunt Group, Hungary currently has demand for workforce is growing rapidly. a shortage of about 2,000 engineers.

In Hungary, even the best companies must “Automation, process, development, compete against each other to have good quality, maintenance and project candidates,” Molontay said. engineers are the most wanted,” he said.

Of course, it is not just recent graduates The market tensions started long ago, according to Márton Zalai, senior who are challenging to find. Top consultant for CEE region | IT, telecom management in the engineering and and advisory at HR-COM Organizational programming level is becoming a difficult slot to fill, according to Lipcsei. & Management Consultant Ltd. “Multinationals and global companies “Through executive search, we find, realized that they can source not only select and suggest C and C-1 level a high quantity of coding here but also professionals for our international and great quality development,” he said. local clientele,” he said. “What we see, day“Parallel to that, there is also a growing by-day, is that there is a massive demand number of Hungarian companies and for managers in production, logistics/ start-ups who were able to develop supply chain, quality assurance and EHS their own organization and transform (environment, health, security) positions. their ‘garage’ companies into major IT programmers, SAP professionals and corporations – including Graphisoft, their supervisors are also strongly needed.”

Dorsum, Virgo, W.UP, Balabit, Prezi, The top-level professionals are all the more challenging to find because UStream, LogMeIn, NNG etc.” executives in technical fields have to keep current with trends while also handling Who’s in demand? their regular work, Young noted.

According to Molontay, “All engineers are “So much is expected of top managers in demand, but it is mostly mechanical today. The pace of change is incredibly engineers, electrical engineers and fast and modern companies have become IT engineers. The most wanted IT so complex,” he said. “Engineering and professionals are developers,” coding in IT managers are expected to keep pace with these changes, and be able to adapt JAVA, C++, C# and similar languages.

Kaposvári added: “Quality Engineering to make the best of change, while at the and Java, C++, UI & UX development same time motivating, coaching and have become particularly in demand in developing their teams, managing clients the last two years.” and maintaining and introducing new Klemens had a similar assessment, standards and processes.” saying: “Mechanical and electrical Zalai said the “hype” around IT means engineers are in high demand. All kinds that “engineers find IT more attractive, more profitable and more innovative to of IT developers are needed.”

engineering.” As a result, he said, there is a big shortage of mechanical engineers.

Zalai also noted that the hardest jobs to fill are the typical expert positions. “Our experience is that the junior- and seniorlevel roles can be filled easier,” he said.

“What’s in between is what’s hard to find and hire, both in IT and engineering, no matter what kind of roles we are targeting.”

Firms need to compete for candidates Given the tight labor market, Hungarian companies need to adjust, according to Wersonig of TARGET Executive Search.

“Engineers and doctors are in a similar situation. They can find a well paid job anywhere in Europe and even beyond,” Wersonig said. “Why should they stay and work in Hungary? Companies in Hungary need to find good answers to this question.”

Lipcsei said that a company’s reputation as a good working environment is essential to recruiting. “Only those who put a great emphasis on development can stand the competition, and development requires highly talented professionals,” he explained. “People choose wellknown names, big brands, and attractive companies more frequently. The company should be visible on the market.”

According to Young, of Amrop Kohlmann & Young, “there are many things a company can do to attract and retain senior managers. These can include, in addition to a competitive package, a challenging and motivating position, career planning, international placements, attractive learning and development opportunities – and, when moving to another part of the country is necessary, assistance with removal and local accommodation expenses.

2016. 02. 24. 20:29

www.bbj.hu

17

3

Budapest Business Journal | Feb 26 – March 10, 2016

f tech talent can be solved

Klemens Wersonig CEO,

TARGET Executive Search

Márton Zalai Senior consultant for CEE region | IT, telecom and advisory ,

Máté Seres Senior consultant with the Hungarian office , Arthur Hunt Group

“We speed up the process of improving HR-COM Organizational & the work environment, because we “Another important factor is to create a typically bring talent from less attractive Management Consultant Ltd. pleasant company culture, caring about places to more attractive ones. … Also, work-life balance and the integration we can help to hold talent in Hungary by “Multinationals and global companies of young mothers, for example. People realized that they can source not only explaining the advantages of working don’t want to feel that they are just a high quantity of coding here but also for our clients.” a subcontractor of the American or great quality development. … Parallel German mother company, they want to to that, there is also a growing number be an equal member of the common Moreover, in such a competitive labor of Hungarian companies and start-ups family, where people and roles can also market, employer branding is becoming who were able to develop their own cross borders.” increasingly important.” organization and transform their ‘garage’ The need for branding was also mentioned companies into major corporations.”

by Kaposvári, of ISG Personalmanagement Kft., who said this could include advertisements and a presence at the appropriate career days and job fairs. and of course the opportunity of an “Managing all applications individually and international career,” Seres said. “Another reassuring candidates of our support also important factor is to create a pleasant has key importance,” she said. “Finding company culture, caring about workthe right time to address candidates when life balance and the integration of young they are open for a career change has an mothers, for example. People don’t want important role in further success.” to feel that they are just a subcontractor of Zalai of HR-COM said that employer the American or German mother company, branding has become crucial, but they want to be an equal member of the storyboards (or position branding) is even common family, where people and roles more important to convince someone to can also cross borders.” make a change. “Candidates are so public, These factors seem to make a real and easy to get in touch with that unique difference, said Seres, who noted that “in content and design/branding is the some extremely fast developing regions like Győr or Szombathely” some firms winning combination.”

Money is one obvious issue, according have 20-30% employee turnover, while to Klemens, of TARGET. “Salaries need others have only 1-2%. to rise significantly,” he said. “A starting HumanField’s Molontay stressed the engineer in Austria straight out of college importance of getting professional help will earn HUF 11 million gross per year. with recruitment. “It is almost impossible And Austria is lower paid than Germany to find engineers and IT professionals in or the UK. In Hungary the young engineer a short time without a good headhunting will probably get HUF 3 mln. This factor of company, because a good headhunter almost 1-to-4 is too high. The cost of life knows not only how to search for candidates, but he can also motivate differs, but nowhere near that much.”

Klemens added, however, that money is them, which is essential in keeping the not everything. “A cool work environment, candidates to the end of the recruiting an inspiring team and leadership can process,” he said. “A good and very close make the difference,” he said. “Candidates relationship between the client and the all over the world join companies for their headhunter is essential.” image, but they leave them because of their boss ... or stay because of a good A recruiting consultant helps boss. So the boss makes a difference!”

Arthur Hunt Group’s Seres similarly Of course, Molontay, and the other noted that “money is only one factor” in experts, noted that their firms could help attracting candidates. “These young in the recruiting process. “Continuous talents need professional challenges and as communication and motivation are the key wide a scope of responsibility as possible, words of recruiting, these are the biggest

BBJ_2404_spec_report.indd 17

strengths of HumanField, this is why we are so effective in both specialist and executive searches,” Molontay said.

Kaposvári of ISG Personalmanagement Kft. also noted the importance of a recruiting firm’s understanding of a job candidate’s needs.

“Thanks to personalized interaction with each candidate, the consulting company forms a personal relationship, reassuring applicants they are valued and supported,” she said. “Owing to their evolving trust, they provide referrals more easily and we have a greater chance to address talents at the right time.”

Wersonig of TARGET Executive Search described the matches that his company makes as win-win propositions.

“We speed up the process of improving the work environment, because we typically bring talent from less attractive places to more attractive ones,” he said. “Also, we can help to hold talent in Hungary by explaining the advantages of working for our clients.”

Seres also said he saw the benefits of recruitment and executive search firms, noting that they can often quickly fill jobs that have been vacant for years. “These companies know what type of qualification is needed to successfully fill a position and they are able to find appropriate candidates in an efficient way,” he said. “Most of the talented professionals are appreciated and have good development opportunities within their companies. They will certainly not respond to a job advert. For important specialist, middle- and top management positions, candidates have to be contacted directly by phone or e-mail.”

Viktória Kaposvári Head of the search and selection division ,

ISG Personalmanagement Kft., Hungary

“Thanks to personalized interaction with each candidate, the consulting company forms a personal relationship, reassuring applicants they are valued and supported,” she said. “Owing to their evolving trust, they provide referrals more easily and we have a greater chance to address talents at the right time.”

It is not just the candidates who need handholding, according to Lipcsei, who noted the importance of close contacts with both parties in an employment deal.

“We go deep inside to the professional desires of both sides and advise the parties in salary and compensation issues, as well as in the ideal form of cooperation,” he said. “Social media is not enough! It is a great help in cutting the time short and sometimes in identification of certain competencies, however, an employer is always in a better negotiating position if he is not the one who directly contacted the targeted person.”

According to Young, his company “can bring considerable value added to identifying, recruiting and retaining top engineering and IT managerial talent. We are an advocate and trusted advisor for our clients. We have deep insights into the context of the local and international talent markets and can leverage this knowledge to bring on board managers who can make a significant positive difference to our clients.”

Zalai said the changes affecting the recruiting industry mean his company has to operate differently. “We have to support our client with more professional and more relevant storyboards, more convincing power than ever before,” he said. “We have to be able to collect, filter, structure and analyze enormous market data, and we have to build new channels to articulate our messages in order to observe tendencies earlier and provide tailored solutions on time.”

2016. 02. 24. 20:29

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3

Budapest Business Journal | Feb 26 – March 10, 2016

EXPERT OPINION

THE RECRUITMENT OF ENGINEERS IS DOOMED WITHOUT EMPLOYER BRANDING AND MARKETING

ABB gets involved in higher ed

There is a huge demand for good professionals, but these people are less and less forced or motivated to spend their time browsing job advertisements – as the job offers find them automatically. As a direct consequence, job sites are becoming less effective in terms of recruitment. Based on the internal survey of TESK, a common engineer position needs to be advertised online 5 to 10 times to get a reasonable number of applicants. However, the price of advertisements was raised two to three-fold in the past 3 years. And what if you need not only one, but 50-100 engineers?

These numbers clearly indicate that if we want to be successful at recruitment, we need to take a step from the conventional methods, and have to look in other directions to find the suitable candidates.

NOTE: ALL ARTICLES MARKED EXPERT OPINION ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Figure: Internal statistics of TESK. Positions filled in Q4 of 2015 in terms of the source of candidates.

To conduct successful recruitment campaigns, showing employer branding became vital, as it is essential for our company to be well-known among the potential employees of the company. Therefore we need to deal with our own employer branding, or as it is fashionably called, HR branding.

Without this, we pass unnoticed on the market, and the possible candidates are obtained by companies suitably presented.

To build an HR branding, we need to use the latest methods of effective recruitment: • Job advertisements with a special design and a video intro • Facebook marketing campaigns set for the target audience • LinkedIn Job slots and LinkedIn One of these methods – and it is the most researches effective method so far – is to approach • Google Adwords campaigns YouTube video campaigns the passive candidates (meaning the ones • Video job advertisements who are not actively looking for a job). To • Employer branding videos do so, we need to know these people, • Etc. the number of them, and where and • how to find them before we use the right The good news is that these solutions are all available as the services of a communication to get their attention. professional recruitment agency.

Based on the survey of TESK, there are several factors influencing the decision of The main priority of TESK is to provide the best candidates for our Clients. To make the candidate regarding a job offer: 1. the image of the company with the job sure of it, TESK is now presenting its Premium Recruitment Service: including all opening, 2. career development in the position, the marketing tools needed for a successful 3. possible income in the position. recruitment process.

TESK is a Hungarian human resource company that provides result-oriented solutions.

Being responsible for our partners, our objective is to provide our Clients with the human resources needed for the realization of their business aims. Making our candidates more competitive on the labor market, we offer them opportunities to reach their professional as well as individual ambitions.

TESK’S SPECIALTIES in recruitment and selection

• Engineering, Manufacturing • IT & Telecom • SSC, BSC • Logistics

in temporary workers:

• Production (skilled and semi-skilled labor) • Administration • IT outsourcing

Ask our colleagues for more information: TESK Group (TESK Tanácsadó Kft., ESTO-TESK Munkaerő-közvetítő Kft.) 1132 Budapest, Váci út 18. (West Point) T (1) 279 0707 • F (1) 466 0549 • C (30) 580 9332 www.tesk.hu • mail: info@tesk.hu

BBJ_2404_spec_report.indd 18

Young women who participated in the ABB mentorship program.

Mentorships for young engineering women are among the cooperative programs the company undertakes in an effort to increase its pool of technical workers.

year: A five-month mentorship program and a six-month scholarship, both aimed at female students. “The aim of the mentorship program is to strengthen the participation of women in the sector, and to help female students learn about the products, services and operations of an international firm,” says Vainio. Five students are mentored by professionals at ABB for five months and will be able to visit ABBʼs factories in Hungary and abroad and apply for internship positions at the company that could lead to fullANIKO FENYVES time employment.

In addition to this, ABB has partnerships with more than 70 With factories in Kecskemét and Vác, universities around the world, to help with global power and automation technology the short- and long-term developments company ABB says it is making room of their existing and future products to grow in Hungary by fostering the and services in an environment that development of the technical workforce provides the most advanced equipment and computer programs. This helps of the future.

Tanja Vainio, country manager of ABB student acquire practical and up-to-date in Hungary, spoke with the Budapest knowledge on cutting edge systems that Business Journal about the many help them enter the job market with a initiatives her company is involved in, competitive edge, says Vainio. and how shortages in the technical and engineering fields can be overcome by Outshining the competition adapting educational programs to meet the needs of industry.

After investing in the advancement of its Vainio recognizes the growing trainees and interns, it makes sense that competition within the various sectors ABB should want to keep them on board to attract the most qualified technical for as long as possible, and Vainio is quick experts and engineers, and says there to point out the most effective way to do is a particular need for personnel in this. “Only those companies that offer such fields as robotics, electrical and long-term attractive career advancement mechanical engineering and IT, but opportunities, professional challenges shifts in focus and changes to educational and adequate motivational tools are able programs are not likely to be felt until the to retain their workforce in the long run,” shortage is in full swing. says Vainio, who believes that employees Choosing a career path, however, should perform at their best when their interests begin before university, says Vainio; she and skills match their jobs. believes it is never too early to get students ABB says it offers its employees stability, the chance to develop, to consider a life in engineering.

Young women are also a much- international careers, and good salaries neglected source for the technical as well as cutting edge technologies, workforce but often need a little extra all characteristics that help make push to join a sector largely dominated the company an attractive workplace, by men. In this regard, ABB initiated particularly for engineers who are two university programs in Hungary last currently in such high demand.

About ABB ABB has an extensive product portfolio that ranges from simple switches to complex robots, to large transformers that control entire power networks and factories and provide secure and energy-efficient generation, transmission and distribution of electricity on an industrial scale. In Hungary, ABB employs an engineering team to develop solutions for the Hungarian market using existing ABB products and services.

2016. 02. 24. 20:29

www.bbj.hu

19

3

Budapest Business Journal | Feb 26 – March 10, 2016

Finance firm prizes math and science brains over MBAs While they may be a finance firm, Morgan Stanley prefers to find supple minds and then teach them what they need to know about economics.

many cases we do not investigate the field experience of applicants, but if their general knowledge, competencies and skills can fit successfully into the operations of our firm or not,” Norbert Fogarasi, general manager of Morgan Stanley’s Budapest office told the briefing. He explained that a lot of the financial and economic knowledge that his employees use can be taught to young workers, as long as they have the analytical ability to appreciate those subjects.

When Morgan Stanley first opened an office in Hungary in April 2006, it established the mathematical modeling center in Budapest, “to support the firm’s global fixed income trading business”, according to a statement from the company.

“In July 2006, based on Hungary’s excellent higher education and the good quality professional local talent, the firm furthered its presence in the region by opening the business services and technology center in Budapest, to support business activities in North America, Europe and Asia.

In Morgan Stanley’s view, Fogarasi said, the most important knowledge is in the so-called “STEM” areas:

CHRISTIAN KESZTHELYI

While many companies fret about the difficulty of recruiting technicians, engineers and mathematicians, Morgan Stanley said at a February 16 press briefing in Budapest that these might be the only kind of specialists they need to hire.

The financial services company employs a lot of people involved in financial and economics work, but that does not mean they are only in the market for MBAs. “Collective knowledge is becoming more and more important, which means in

Science, Technology, Engineering and Mathematics; in the coming years, these may become the most-sought-after set of competencies in recruitment, the firm says. Appreciation of STEM specialists is increasing internationally, but Hungary lags behind in acknowledging their value and taking advantage of their skills, the professionals of Morgan Stanley said.

“STEM is in fact the merger of different scientific fields, and is becoming especially relevant in the banking sector,” Fogarasi said. “It is not enough anymore if an IT programmer knows everything about writing programs. Sometimes they need to understand financial processes, while an economist sometimes needs to know about deeper process-modeling knowledge as well.”

Fogarasi told the press briefing that Morgan Stanley’s requirements are complex and require deep thinkers. Based on the experiences of Morgan Stanley’s Budapest operations, he said the work involves heavy analysis. Morgan Stanley has learned that, in many cases, it is not a disadvantage if a job applicant possesses

Norbert Fogarasi, general manager of Morgan Stanley’s Budapest office. no experience in the field of banking or finance, as the unique and special knowledge needed in this field can be acquired through internal training once the professional is enrolled by the firm.

“We have many positions requiring many different university qualifications.

IT specialists, engineers, economists, financial experts, law professionals, teachers and more,” he said. “That’s why mathematicians and physicists often work in our Budapest offices.”

Executive search firms

1

www.kornferry.com

–

–

80

15

5

219 219

4 6

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

plaCement fRom database

adveRtising

diReCt seaRCH

RetaineR

100

seaRCH (%)

suCCess-based

Ÿ Ÿ

otHeR HR seRviCes

350 483

Ÿ

outplaCement

–

management audit / assessment

–

seleCtion

100

12 months

seRviCe poRtfolio (%)

exeCutive/diReCt seaRCH

Ÿ

peRiod of guaRantee to Clients seaRCH peRiod

Ÿ

otHeR

Ÿ

middle management

Ÿ Ÿ

top exeCutives

392(1) 579(1)

seaRCH metHods (%)

no. of full-time employees on feb. 1, 2016 no. of offiCes WoRldWide

koRn/feRRy inteRnational budapest kft.

no. of Consultants on feb. 1, 2016 no. of ReseaRCHeRs on feb. 1, 2016

Company Website

bReakdoWn of Candidates plaCed in 2015 (%)

net Revenue fRom peRmanent plaCements in 2015 (Huf mln) total net Revenue in 2015 (Huf mln)

Rank

Ranked by net revenue from permanent placements in 2015 (HUF mln)

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive Cfo maRketing diReCtoR

addRess pHone fax email

Ÿ 80

– Korn Ferry International (100)

vilmos szabó – –

1022 Budapest, Bimbó út 77.

(1) 346-0609 (1) 346-0619 zsuzsanna.heidinger@ kornferry.com

67

33

–

–

–

Ÿ

Ÿ

85

–

10

5

–

–

100

25 8

Éva Gombás (34) A2H SARL (66)

Éva gombás – –

1075 Budapest, Madách Imre út 13–14.

(1) 361-3612 – arthurhunt@arthurhunt.hu

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

13 1 (ISPA - 20)

Irén Csőkör (97), individual (3) –

Irén Csőkör – –

1073 Budapest, Erzsébet körút 13.

(1) 413-7145 (1) 413-7146 humanfield@humanfield.hu

100

8 20

Ernő Dús (3) PSP Holding GmbH (87), Patrick Siklóssy (8), István Siklóssy-Záhonyi (2)

Ilona Gyorsok – Ernő Dús

1051 Budapest, József nádor tér 8.

(1) 266-5235 (1) 266-4072 psp@psp-siklossy.hu

100

14 40

Individuals (100) –

zsolt fazekas Péter Dömsödi –

1027 Budapest Szász Károly utca 2.

(1) 201-2252 (1) 201-2252 hill@hill.hu

aRtHuR Hunt kft. www.arthur-hunt.com 2

12 months

Ÿ

Humanfield tanáCsadó iRoda kft. www.humanfield.hu 3

4

psp siklóssy & paRtneR VezetőI tanáCsadó Kft.

5

Hill inteRnational kft.

www.psp-siklossy.hu

www.hill.hu

BBJ_2404_spec_report.indd 19

180 180

4 2

172 203

7 5

90

80

10

10

–

10

30

30

40

50

3-12 months 4-8 hét

30

6-12 months 6-12 weeks

20

6-12 months 4-8 weeks

90

80

10

5

–

10

–

–

–

5

–

–

2016. 02. 24. 20:29

www.bbj.hu

no. of full-time employees on feb. 1, 2016 no. of offiCes WoRldWide

RetaineR

seaRCH (%)

suCCess-based

otHeR HR seRviCes

outplaCement

management audit / assessment

seleCtion

seRviCe poRtfolio (%)

exeCutive/diReCt seaRCH

peRiod of guaRantee to Clients seaRCH peRiod

otHeR

middle management

bReakdoWn of Candidates plaCed in 2015 (%)

top exeCutives

plaCement fRom database

adveRtising

seaRCH metHods (%)

diReCt seaRCH

Company Website

no. of Consultants on feb. 1, 2016 no. of ReseaRCHeRs on feb. 1, 2016

Budapest Business Journal | Feb 26 – March 10, 2016

net Revenue fRom peRmanent plaCements in 2015 (Huf mln) total net Revenue in 2015 (Huf mln)

Rank

20 3

isg peRsonalmanagement kft.

6

www.isg.com, www.isg.hu, www.executive-search.hu

171 186

9 5

163 170

4

amRop koHlmann & young kft.

7

www.amrop.hu

stanton CHase HungaRy kft.

Ÿ

160 170

Ÿ Ÿ

9

155 159

4 3

peaRl Hunt kft.

10

115 115

4 5

next-Consulting kft.

11

93 106

3 3

8

www.stantonchase.com

90

100

Ÿ

2

–

Ÿ

8

–

Ÿ

35

80

90

50

20

10

15

5-12 months 3-6 weeks

–

12 months 6-10 weeks

–

12 months

Ÿ

82

100

95

–

–

–

8

–

5

5

–

–

5

–

–

10

–

–

90

14 50

100

8 83

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive Cfo maRketing diReCtoR

addRess pHone fax email

ISG Personalmanagement krisztina pulay Kft.(60) – ISG – Personalmanagement GmbH (40)

1023 Budapest, Bécsi út 3–5.

(1) 326-1699 – info-bp@isg.com

Richárd kohlmann, david g. young – –

1022 Budapest, Eszter utca 6/B (1) 391-0950 – office@amrop.hu

Richárd Kohlmann (50) David G. Young (50)

100

Ÿ

– Individuals (100)

norbert nagy – –

1051 Budapest, Dorottya utca 6.

Palazzo Dorottya (1) 796-3510 (1) 796-3511 budapest@ stantonchase.com

100

8 35

Árpád Németh, Zoltán Pethő (100) –

árpád németh – –

1126 Budapest, Derkovits utca 9.

(1) 801-8888 (1) 801-8889 info@hrcom.hu

–

9 1

Anett Jusztin (100) –

anett Jusztin – –

1023 Budapest, Ürömi utca 42-44.

(30) 532-6320 – hr@pearlhunt.hu

100

6 1

(100) –

Bernadett Iker – –

1024 Budapest, Lövőház utca 7–9.

(1) 202-1008 (1) 202-1008 contact@nextconsulting.hu

katalin Bereczky Zsófia Csáklány –

1025 Budapest, Ali utca 8.

(1) 489-4489 (1) 489-4488 neumann@ neumann-partners.hu

andrás sághy – –

1062 Budapest, Andrássy út 100.

(1) 267-0944 (1) 267-0943 budapest@kienbaum.com

72

HR-Com sZeRveZetfeJlesZtÉsi És VezetőI tanáCsadó Kft. www.hrcom.hu

www.pearlhunt.hu

www.nextconsulting.hu

neumann & paRtneRs kft.

90

65

100

5

5

–

5

30

–

30

–

85

www.dhrneumann.com

92 92

3 2

kienbaum exeCutive 13 Consultants kft.

81 83

1 3

100

–

–

84

77 77

2 2

100

–

–

75 120

3 2

90

10

–

12

www.kienbaum.com

dR. pendl & dR. pisWangeR

14 kft. www.pendl.hu

15

simonyi És tótH kft. www.sandt.hu

100

–

–

50

5

10

20

3-12 months 4-10 weeks

95

3-6 months 2-6 weeks

5

9-12 months 6-8 weeks

95

70

90

–

30

–

5

–

10

–

–

–

–

–

–

–

6-12 months 100 6-8 weeks

12

4

6-12 months 4-8 weeks

97

–

3

–

–

70

25

5

6-12 months 5-6 weeks

90

5

5

–

75

20

5

3-12 months 4-8 weeks

90

10

–

–

65

35

–

–

–

–

100

–

Katalin Bereczky (Ÿ), Krisztina Kövesdi (Ÿ) Neumann Leadership Holding GmbH (Ÿ) – Kienbaum Consultants International GmbH (50), Kienbaum und Partner GmbH (50)

100

4 120

–

100

4 33

–

–

100

5 85

András Lipcsei (100) –

andrás lipcsei – –

1011 Budapest, Corvin tér 10.

(1) 487-0241 (1) 487-0248 pandp@pendlpiswanger.hu

–

–

100

6 2

Judit Tóth Simonyi (100) –

Judit tóth simonyiné – –

1015 Budapest, Szabó Ilonka utca 71/A (1) 214-1286 (1) 214-1286 info@sandt.hu

100

4 7

– Klemens Wersonig (100)

dominika kelemen-Raths – –

1024 Budapest, Lövőház utca 30.

(1) 429-1020 (1) 429-1029 office@ targetexecutivesearch.com

–

–

Finding just the right „Ő” for You! www.targetexecutivesearch.com taRget HungáRia kft.

www.targetexecutivesearch.com 16

BBJ_2404_spec_report.indd 20

73 73

4 2

100

–

–

70

30

–

6-12 months 100 5-6 weeks

–

–

–

–

–

2016. 02. 24. 20:29

www.bbj.hu

15

5

25

50

58 58

5 3

80

10

10

20

40 42

3 2

70

10

20

36 36

3 1

70

10

20

30 30

4 2

22

28 36

3 2

egon ZeHndeR NR inteRnational kft.

Ÿ

Ÿ Ÿ

www.cnaint.eu

seaRCH (%)

40

40

3-12 months 4-8 weeks

60

20

10

–

10

70

30

8 1

Balázs Majer (50), Dávid Pelle (50) –

balázs majer, dávid pelle – –

1053 Budapest, Magyar utca 24.

(1) 429-0029 (1) 429-0030 info@mphil.hu

75

20

5

6-9 months 4-6 weeks

80

10

5

–

5

50

50

3 1

Miklós Fodor (100) –

Miklós fodor – –

1025 Budapest, Kapy út 14.

(70) 597-6722 (1) 200-0607 cv@fodorhr.hu

30

60

10

9-12 months 4-6 weeks

70

30

–

–

–

50

50

4 1

Zsolt Lukács (100) –

zsolt Lukács – –

1132 Budapest, Váci út 28.

(1) 781-1224 (1) 781-1228 office@telkes.hu

20

6-9 months 3-4 weeks

80

2 4

Annamária Horváth (50), András Horváth (50) –

andrás Horváth, annamária Horváth – –

1055 Budapest, Honvéd tér 10/B (1) 373-0250 (1) 373-0250 info@horvath-hr.hu

15

12 months 5 weeks

100

5 1

Péter Lendvay (100) –

péter lendvay Péter Lendvay –

1037 Budapest, Montevideo utca 2/C (1) 920-2877 (1) 487-9099 research@deltasource.hu

Ÿ

Ÿ Ÿ

Ÿ

Ÿ Ÿ

– Egon Zehnder Finanz AG (96.70), Egon Zehnder International AG (3.30)

stephen Benkő – –

1054 Budapest, Szabadság tér 14.

(1) 354-2115 (1) 354-2114 budapest@ egonzehnder.com

Ÿ

– Pedersen & Partners B.V. (100)

Mónika Kecskés – –

1052 Budapest, Sütő utca 2.

(1) 328-0277 – budapest@ pedersenandpartners.com

– (100)

Jens friedrich – –

1053 Budapest, Károlyi utca 12.

(1) 577-5200 (1) 577-5202 budapest@ spenglerfox.com

RetaineR 10

suCCess-based 90

otHeR HR seRviCes 5

outplaCement –

management audit / assessment 5

seleCtion 10

– CNA International CEE & CIS (100)

exeCutive/diReCt seaRCH 80

6 30

otHeR 25

3-12 months 4-6 weeks

middle management

oWneRsHip (%) HungaRian non-HungaRian

top exeCutives

plaCement fRom database

adveRtising

diReCt seaRCH

seRviCe poRtfolio (%)

no. of full-time employees on feb. 1, 2016 no. of offiCes WoRldWide

80

Cna exeCutive seaRCH 17 HungaRy kft.

seaRCH metHods (%)

peRiod of guaRantee to Clients seaRCH peRiod

no. of Consultants on feb. 1, 2016 no. of ReseaRCHeRs on feb. 1, 2016 6 3

Rank

net Revenue fRom peRmanent plaCements in 2015 (Huf mln) total net Revenue in 2015 (Huf mln)

bReakdoWn of Candidates plaCed in 2015 (%)

72 72

Company Website

21

3

Budapest Business Journal | Feb 26 – March 10, 2016

top loCal exeCutive Cfo maRketing diReCtoR

addRess pHone fax email

Zoltán korpás – –

1051 Budapest, Bajcsy-Zsilinszky út 12.

(1) 794-2479 – zkorpas@cnaint.eu

mp solutions kft. www.mphil.hu 18

fodoR Human ResouRCes

19 kft. www.fodorhr.hu

dR. telkes kft. www.telkes.hu 20

HoRvátH ReCRuitment sZemÉlyZeti tanáCsadó kft. www.horvath-hr.hu 21

60

25

15

50

30

60

25

15

–

–

20

delta souRCe kft. www.deltasource.hu

www.egonzehnder.com

NR

pedeRsen & paRtneRs kft. www.pedersenandpartners.com

spengleRfox limited NR magyaRoRsZági fióktelepe www.spenglerfox.com

457(2)

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

3 3

75

Ÿ

100

100

25

Ÿ

–

–

–

Ÿ

–

–

30

Ÿ

80

80

55

Ÿ

20

20

–

–

12 months 4-8 weeks

6-12 months 5-8 weeks

65

Ÿ

90

80

15

Ÿ

–

–

–

Ÿ

–

–

–

Ÿ

–

5

20

Ÿ

10

15

–

Ÿ

–

–

100

100

56

8 33

NOTES: (1) Data of business year May 1, 2014-April 30, 2015. (2) Data of business year November 1, 2013-October 31, 2014.

Ÿ= would not disclose, NR = not ranked, NA = not applicable

BBJ_2404_spec_report.indd 21

This list was compiled from responses to questionnaires received by Feb. 17, 2016 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

2016. 02. 24. 20:29

4 Socialite BBJ

WHAT’S

ON CONTEMPORARY DANISH ARCHITECTURE 2.0 from February 23, Skandináv Ház The exhibition features 21 projects by 15 Danish architectural studios from the renewal of public spaces to the construction of residential complexes, presenting sustainable contemporary solutions from Danish architectural culture and design.

The exhibition will be accompanied by a variety of programs including workshops, film screenings and concerts. skandinavhaz.hu BUDAPEST FESTIVAL ORCHESTRA February 26, 28, Palace of Arts Russian pianist Nikolai Lugansky with the accompaniment of the Budapest Festival Orchestra will honor the works of his fellow countrymen, beginning with composer Dmitri Shostakovich in a performance of “Hamlet - suite, op. 32”, which was first written for a play in 1932.

Also on the bill is Sergei Prokofievʼs “Piano Concerto in G minor”, which had audiences and critics greatly divided when Prokofiev first performed it in 1923.

The evening will close with the work of Russian folk music aficionado Pyotr Tchaikovsky in his “Symphony No. 2” also known as the “Little Russian”. mupa.hu

Fun things to d o in Budapest for the nex t t wo weeks.

BUIKA February 29, Palace of Arts Spanish born composer-drummer-poet Buika has often been compared to Nina Simone, Cesaria Evora, Billie Holiday and Amy Winehouse, but when she first set out on her musical path, all she wanted to be was a drummer. Her debut “Mestizuo” was released in 2000 and she has since evolved into one of the most sought-after singers of her day, moving freely from flamenco, to African polyrhythm, to jazz, soul and pop. She received a Grammy nomination for her 2013 disc “La Noche Mas Larga” and released her eighth album “Vivir Sin Miedo” in the fall of last year. Meanwhile she’s also been busy publishing volumes of poetry and writing a novel and an opera. mupa.hu SCORPIONS February 29 Papp László Budapest Sportaréna Classic German rockers best known for their ʼ80s stadium-friendly anthem “Rock You Like a Hurricane” and power ballads such as “Still Loving You” will make a stop in Budapest in support of their most recent release “Return to Forever”. Active since the mid-’60s, the group, many of whom are edging towards 70, still have what it takes to put on an energetic show.

Buika.

Scorpions.

They certainly have a lot of material to draw from with more than 270 songs in their repertoire. livenation.hu

KITCHEN EXHIBITION March 4-6 Papp László Budapest Sportaréna

The largest bike exhibit in the country is being held just in time for the cycling season.

Check out all that’s new in biking and test out your cycling skills on the massive indoor track or watch the pros show their tricks or race against one another. There are plenty of programs for children, too. bringa.hu/expo

Find your dream kitchen at this year’s Kitchen Exhibition where all that’s new and exciting in the world of kitchen technology and furnishings will be on display interspersed with live cooking shows in which Hungarian chefs will reveal some of the most valuable secrets of their trade. The “Taste of Budapest” program presents samplers of what some of the top restaurants in the capital are up to. konyhakiallitas.hu

VINCE BUDAPEST March 3-6, Corinthia Hotel Budapest

COMPAGNIE PÁL FRENÁK: INTIME March 11, Trafó

With more than 160 exhibitors, vinophiles can get a good dose of local and international vintages while also taking part in the myriad workshops and master classes on offer. Winemakers from outside the region will also show their wares as well as local pálinka manufacturers and purveyors of cheese, olive oil and, of course, sausage. Although originally designed for those working in the industry, VInCE is also open to and widely attended by the general public. vincebudapest.hu

Five dancers on stage reveal the complexity of human relationships, observing one another from a distance and up close. Renowned Hungarianborn choreographer Pál Frenák, who spends much of his time in Paris, has a particular interest in the lively and explosive nature of relationships and how to express tension through movement. He heads one of the most prestigious contemporary dance companies in Hungary. trafo.hu

BIKE EXPO March 3-6, Hungexpo

hungarian national gallery until 1 May 2016

BBJ_2404_socialite.indd 22

Ilya Mashkov: Portrait of a Woman in an Armchair, 1913 ©Ekaterinburg Museum of Fine Arts

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2016. 02. 24. 20:31

5 Socialite

www.bbj.hu

Budapest Business Journal | Feb 26 – March 10, 2016

23

Wine: Onwards and upwards for Olaszrizling Olaszrizling Szerintünk tasting proves Hungaryʼs mostplanted white grape, now given a new panBalaton classification system, can produce some excellent wines.

ROB SMYTH

This year’s buzzing Olaszrizling Szerintünk event, held at the Szent Donát and Jásdi wineries in Csopak on the northern shores of Lake Balaton in the heart of “Rizling” country, provided yet further evidence that Hungary’s most planted white grape is capable of making some very good to excellent wines. It also saw the announcement of a new pan-Balaton classification system, Vinea Balaton, for wines made from the Olaszrizling grape. This new system seeks to distinguish between entry-level wines known as Balatonbor and the more upmarket Hegybor lit, or “Hill wine”, which hails from vineyards set on the hallowed higher ground around the lake.

Something like this had been planned for the 2014 vintage, but was postponed due to the washout of that vintage in which quantity – and often quality – was right down. The vintners looked to international benchmarks to base the system on, and found one close at hand in the prestigious Austrian region of Wachau. The Balatonbor category can therefore be compared to Wachau’s light and easy drinking Steinfeder category and should cost HUF 1,300-1,500, with participating producers expected to offer up to 3,000 bottles each from the inaugural 2015 vintage. Balatonbor should be reductively made (i.e. in stainless steel to preserve the freshness), fruity, light and easy. It will be sold in a Burgundy-shaped bottled, sealed by a screw cap.

Hegybor can likewise be compared to Wachau’s more serious Federspiel

Olaszrizling is an even better articulator of terroir than Furmint, according to István Jásdi category, with the wine needing to be more layered and concentrated, as well as being elegant and having a sense of its place of origin. The target price is HUF 1,500-3,000. Perhaps wisely, there in no attempt at this stage to add a third tier as the equivalent of Wachau’s highest Smaragd category: It’s better to learn to walk before running, and if a wine can tick all the Hegybor boxes it will be very fine Olaszrizling indeed.

Unlike Wachau, Vinea Balaton does not appear to distinguish quality by alcohol level; a good thing, as more alcohol does not necessarily make better wine, and indeed often makes it worse. Wines in both categories will go before judging committees of experts drawn from outside the region on March 21. Both categories are exclusively for dry wines.

Olaszrizling Szerintünk provided an opportunity to taste new samples from the 2015 vintage, which is quite the opposite of 2014. The resulting wines are lively and fresh, but also with plenty of ripe plumpness and generosity. From Szentantalfa, organic Dobosi’s two 2015 offerings – one from an earlier harvest, one from a later – were pristinely pure and vibrant with green apple, pear and lime/lime peel notes. Káli Kövek’s 2015 from the Káli Basin was zesty and vibrant but also complex and layered.

From Badacsony, Borbely showed some impressively concentrated wines such as Bács hegy 2015, which was oily and textured, but also with trademark freshness. Also, from Badacsony, Laposa’s 2015 was soft, round and deliciously fruity with some tropical notes.

Certain winemakers still made excellent wines in 2014 thanks to rigorous selection of grapes. Káli Kövek’s 2014 from the Köveskál vineyard was

Olaszrizling Szerintünk celebrates the country’s most popular grape in its many sophisticated forms. voted the top wine by participants and the only note I have written for this wine, which really shone through out of the sea of Olaszrizling, was “like a good Wachau” – high praise indeed! Incidentally, another Káli Kövek Olaszrizling from 2014 – Rezeda – was one of my wines of last year and wowed me when I tasted it alongside a Riesling (Rajnai rizling in Hungarian) from the same winery. While both wines were very good, the supposedly more humble Olaszizling was for once even more impressive than the noble (and unrelated) Riesling – which suggests to me that Olaszrizling is more than capable of making top wines.

Olaszrizling is often considered a pauper when mentioned alongside the regal Furmint grape. Nevertheless, Olaszrizling is an even better articulator of terroir than Furmint, according to István Jásdi, whose Siralomvágó 2013 claimed joint fourth place with Ottó Légli’s Banyászó 2012 from the

southern side of Balaton (Csopak’s Guden claimed the second and third places). This may sound like something of a lofty claim from Jásdi, but he is in a position to compare the grapes, being one of the pioneers in re-establishing Furmint around Balaton. Furthermore, Szent Donát has released several Olaszrizlings from different vineyards comprising different soils from the 2013 vintage, and the differences are indeed pronounced.

Olaszizling typically has less acidity than Furmint, making it the ideal tipple for those who don’t like sharpness in their wines, but sometimes Olaszizling can be a bit flabby if picked too late, as the natural acidity drops off quickly as the sugar soars. This makes it hard to capture the right balance between acidity and concentration, but the better winemakers seem to have cracked it, especially when working with grapes from those cherished hillside vineyards.

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Take a look how the new Audi A4 feels like. *Option available at an extra charge. Fuel consumption Audi A4 in l/100 km combined: 3,7–6,3 l; CO2 emissions in g/km combined: 95–144. The fuel consumption and CO2 emissions data are determined by standard EU Test figures (715/2007/EK act.) and are only for comparative purposes and may not reflect real driving results.

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2016. 02. 24. 20:31 15/02/2016 13:22