Promoting latvian engineering MASOC

Joint exhibition stand organised by mASoC at Tampere international subcontracting trade fair Alihankinta

PRoMoTIng LATvIAn EngInEERIng

MASOC, the Association of Mechanical Engineering and Metalworking Industries of Latvia, brings together some 160 leading companies in the sector with a mission to foster partnership and promote development to increase competitiveness in export markets. Romana Moares spoke to Mr Toms Grinfelds, Chairman of the Board, about the Association’s key roles, tasks and future challenges in light of new market trends.

Tech Industry – the biggest trade fair for mechanical engineering in the Baltic region. Held every year in Riga, from late November to early December and supported by mASoC Stainless steel city wastewater treatment plant designed and produced by the company ReSeTIloVS, installed in Caucasus TehnoBuss – mobile demo laboratory, equipped with modern production technologies that is offering lectures for primary school children to raise interest in engineering sciences

IN its nearly 25 years of existence, MASOC, Latvia’s Association of Mechanical Engineering and Metalworking Industries, has achieved an impressive amount. Established in 1994 just four years after the country gained independence, the industry was in a shambles with an out-dated production base and limited experience in trading with advanced (and lucrative) western markets.

“Those were tough times for the industry,” recalls Mr Grinfelds. “New companies were being set up and the whole country needed to re-orientate itself to new markets. The Association was put together by some 20 companies that could see the need for an organisation to represent the needs of the sector on national and international levels and help companies become more competitive.”

Business promoter

Since then, the Association has grown considerably and now has about 160 members, mostly leading metal processing companies. Mr Grinfelds explains that as most of the companies in Latvia are small- or medium-sized businesses, this number represents only about 10–15 per cent of all companies in the country, generating about 70 per cent of the sector’s turnover.

“All the key players in the sectors are members. Some are subcontractors for larger producers and some make and market their own products,” says the director, adding that the Association covers not just industrial companies but also a variety of service providers such as testing and certification companies, suppliers of materials and equipment and educational and research institutions. “The Association has brought together companies from all regions of Latvia, with both Latvian and foreign capital.”

MASOC’s main task has always been to promote the development of its members’ international competitiveness. This objective is supported by a variety of activities and initiatives. “We are basically doing two things,” says Mr Grinfelds. “We represent the interests of our members and the sector as a whole. This is done in cooperation with the Employers’ Confederation of Latvia and the Chamber of Commerce Latvia, of which MASOC is a member. We are also active internationally and cooperate with ORGALIME and CEEMET, of which we are also a member.

“But the majority of our activities are focused on projects and initiatives to help our members prosper and to provide various services to them. Mutual cooperation is promoted by joint projects and activities as well as by ensuring the exchange of information,” he stresses, explaining that MASOC constantly maintains and updates its database of corporate technological capabilities and competencies, thereby facilitating the search for cooperation partners. Joint events are regularly held to foster informal contacts between companies in the sector. Regular off-site meetings at companies throughout Latvia give additional opportunities for information sharing and networking.

Factory visit during monthly knowledge sharing meeting

Fish processing line designed and produced by company PeRuZA installed in Philippines

education in focus

As in other advanced economies with an ageing population, Latvia’s challenge is the shortage of skilled labour. Therefore, one of the main tasks of the Association is to promote the supply of adequate and qualified specialists to the industry. It cooperates closely with all major professional and higher education institutions and the Ministry of Education, and initiates activities to attract young people to learning and studying the engineering and industry-relevant professions.

“A good example of our efforts in this respect is the Technobus project – this is basically an 18m-long bus equipped with samples of modern production technologies including CNC machines, 3D printers, robots and automation technology. The bus visits primary schools and offers children the opportunity to see (and try) how interesting these technologies are.”

The Association also promotes the development of continuous training and lifelong learning in the sector. Since 2011, the EU cofinanced project, ‘The training of metalworking professionals’, has been in operation, encouraging companies to develop the skills of existing staff. “Our position enables us to exercise influence on the policymakers. Most of the big issues have impact across different industries so we try to collaborate with other sectors. A joint industry voice is always stronger,” Mr Grinfelds points out.

New trends, new future

As Latvia is a small market, its industrial companies are exportoriented. The metal processing sector exports about 80 per cent of its output with the biggest market being the EU (mostly Scandinavia and Germany), followed by other territories such as Russia and

many companies are involved in subcontracting activities. Welded steel structure from eko el

Toms Grinfelds – Chairman of the Board at mASoC

Ukraine. In this respect, the Association supports its members in participating in various trade shows, particularly in those countries where most of the exports are directed.

“Of course the EU market is stable and flourishing but the growth rate is small. Faster, although more risky, are the emerging markets in Africa, Asia and South America and we also help our members to identify business opportunities in these new markets.”

Latvian companies are generally very well-equipped with worldclass technology following two decades of major investment. The current hot topic – as is the case everywhere in Europe – is the Industry 4.0 concept and digitalisation. “It is clear that digitalisation is the future: it is just a matter of time. As most of our companies are medium- or small-sized, digitalisation is not a pressing issue for them, although of course in the metal processing sector this process is already happening to a certain extent with nearly every machine interconnected. To prepare the companies for the deployment of digitalisation on a larger scale is also an area in which the Association is very active at the moment,” says Mr Grinfelds.

He explains that Latvian businesses are awaiting a major tax reform in 2018, which should facilitate re-investments and also promote investment from abroad. “Our top priority will remain the same, though – to help our members become more competitive in international markets. This is the objective towards which all our activities are directed,” he concludes. n