About sector

% of total manufacturing in Latvia

Mechanical engineering and metalworking is one of the leading industries in Latvia.
Sector provide 19% of total manufacturing turnover and 24% of total exports of goods.
 

 

When reffering to Mechanical engineering and metalworking sector the following branches according to NACE2 classification are taken into account:

C24 - Manufacture of basic metals
​C25 - Manufacture of fabricated metal products, except machinery and equipment
C27 - Manufacture of electrical equipment
C28 - Manufacture of machinery and equipment n.e.c.
C29 - Manufacture of motor vehicles, trailers and semi-trailers
C30 - Manufacture of other transport equipment

The analysis does not include data on such lines of action as repair of equipment, production of electronic and optical products, as well as recycling that are also closely related to the engineering and metalworking industry.

 

Mechanical engineering and metalworking industry is highly export-oriented, on average, around 75-80% of its production is exported. According to the Latvia’s foreign trade statistics, industry products are exported to more than 100 countries of the world, therefore the export market has very wide geography. Overall, around 73% of production is sold in countries of the European Union.

 

Employment figures in general have similar trends as the ones the overall economic development of the industry have. The employment rate is affects by global economic processes too; therefore the changes largely are correlating with other indicators such as the total turnover and export. However, along with rise in business efficiency and technological modernization, productivity rates gradually increases and thus employment growth lags behind the growth rates of turnover and value added. Nevertheless, the qualified professionals in the industry are in demand and their availability should be named as one of the main priorities.