Photo by Herkaus Milaeviius.
looking only at the aggregated indicators of the Lithuanian industry published by statistics, showing growing production, it may seem that the sector is resistant to negative trends.
However, there are many examples when, after the war started by Russia, the consequences of the decision are just beginning to be felt. oh when business owners predict that a crisis may occur, they look for ways to reduce the cost of purchases when they fall.
The manager of a metal processing plant in Vienna says that after a successful last year and during the first half of the year, which was favorable for production, he was forced to work at a loss. The device is simple, while the owner was on vacation, the manager bought a large amount of metal, which then became cheaper.
This is a big problem, according to him, for more than one well-known Lithuanian company, which bought large quantities of metal and suffered losses of millions. His own warehouses are filled until September next year, and suppliers indicate that warehouses in Europe are full of metal at that time as well.
For example, the price of steel rebar at the London Metal Exchange currently stands at $643 per ton, which is a third (32.3%) cheaper than a year ago on April 19. reached a recent peak ($950/t).
Factories will have a big problem, because the cost of the product is expensive, and the product needs to be sold cheaply. Younger people are already becoming insolvent, predicts Panekov.
According to him, in the past, faced with a shortage of metal and a sudden increase in prices, the rush to stock up on larger oil reserves was painfully burned. But he has no one to blame but himself for not being able to predict the future and anticipate that sales may shrink.
Adding to the warehouses filled with expensive oil, high energy prices, and maybe in the future, the increase in the minimum wage, which moves the wage increase spiral, will eat up the previously earned profits.
Especially at the moment, when consumption is decreasing in some areas, sales are also going down.
However, I think that the geopolitical and energy crisis will last longer than 2008. crisis I think the fall will be much bigger and the recovery longer. We haven’t reached the bottom yet. I wanted my assumptions not to be confirmed. But today, what we have to do is adapt to the current situation and come up with a solution, last week V spoke Rolandas Zachareviius, manager and owner of UAB Polywood, wood and wood products manufacturing company.
At the beginning of the year, the company had 240 employees, currently 161 are employed. The businessman does not hide that his number is still growing.
Many money saving options have already been taken. But there is no increase in sales yet.
The businessmen themselves mention that they have to move to the export geography and find new areas where there is a need for their production. Intensify production so that the same amount can be produced with a smaller number of units.
By the way, 8 countries were added to the list of priority export markets this year: Vietnam, Australia, Indonesia, Malaysia, India, Nigeria, PAR and Turkey. The Ministry of Economy and Innovation plans to strengthen Lithuania’s economic representation in these regions, to more actively conduct economic diplomacy visits and events.
Lithuanian embassies and trade missions must be imperatively oriented to the constant need of the market for comparative analysis, taking into account the nomenclature of our manufacturer’s production. Such data will help entrepreneurs find new opportunities and concentrate their efforts on their use.
today, our business and state do not need economic representation, but very pragmatic help to sell Lithuanian products. Growing export statistics should become the most important indicator for evaluating the work of oil embassies and trade representatives, and ineffective representation should become a strong argument for early rotation.
Another possibility, which resembles V, could be the final product. And that the decision can be unconventional, is evidenced by the decision of one company i atrai produces household locks that it sells to craftsmen. In this way, not only oils are used more economically, but also the sales price of the product is different compared to products that are made to order from other companies.
Yes, for this you will have to use other methods than working in B2B business, learning how to advertise and sell such a product. But after all, the period of crisis, when production is low, is favorable for training.
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