1. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv MASOC Association of Mechanical Engineering and Metalworking Industries of Latvia September 2014

2. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv MASOC – Association of Mechanical Engineering and Metalworking Industries of Latvia Established in 1994 as informative and consultative centre for the specified industrial sector Voluntary, membership based organisation Unites about 150 leading sector enterprises Member companies produce over 70% of the sector’s total output, over 50% of sector’s employment Implements activities typical for trade associations and cluster organisations The main goals: – To promote the competitiveness and growth of the sector; – To promote mutual cooperation – To promote professional growth of the specialists in the sector

3. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv MASOC – members’ profile The core group of companies cover various subsectors of metalworking and engineering (NACE 24, 25, 27, 28, 29 and 30) Besides manufacturing companies, related organisations and service providers are included as well, covering the whole value creation chain.

4. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv MASOC – member companies Number of Member CompaniesSize of Member Companies (persons employed)

5. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv MASOC - main activities Representation of interests Networking / Co- operation Education & HR development Marketing International co- operation Information Joint project development

6. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv MASOC – what we offer Information –About the sector –On available technologies and competences of the member companies –Online database of companies Partner search –Partners for subcontracting, joint production, cooperation projects Single contact point Development of joint projects –Clustering activities; marketing and export promotion; HR development; education & research

7. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Tech Industry – platform for international co- operation Riga, 4-6.December 2014 Exhibition Matchmaking event Seminars and conferences Participants, visitors and delegations form Baltic Countries, CIS, Nordic countries, Eastern, Central and Western Europe Organised by exhibition company BT1 in cooperation with MASOC Biggest industrial exhibition in the Baltic Region www. techindustry.lv

8. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Development of Mechanical engineering and metalworking sector in Latvia

9. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Mechanical engineering and metalworking sector in Latvia One of the biggest manufacturing sectors in Latvia: – Accounts for more than 20% of the total manufacturing output and value added (2013) – Second biggest exporting sector in 2013 (accounts for more than 25% of Latvian exports of goods) Exports over 70% of the output One of the fastest growing sectors in Latvia – both before and after crisis in 2009. Covers NACE 24, 25, 27, 28, 29, 30

10. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Structure of manufacturing industry in Latvia, (% of total manufacturing, 2013)

11. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Structure of the MM sector (value added, 2013,%)

12. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Development of mechanical engineering and metalworking sector (2000 – 2013)

13. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Development trends of the sector (production output, 2005=100%)

14. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Change in production and exports (2014. 6 months / 2013. 6 months)

15. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Employment in the sector

16. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Main export markets – mechanical engineering and metalworking

17. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Key issues

18. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Problems in Russian market About 12% of sectors’ exports goes to Russia (2013) In some segments the share exceeds 25% (electrical motors; machinery, etc) The exports decrease in 2014 Uncertainty regarding future of this market

19. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Energy prices Rising electricity costs create risks for the industry, especially those companies that are energy intensive Discussions to reduce the burden caused by “the green energy” component in the electricity costs

20. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv Education Education and HR development – constantly one of the key priorities Dealing with all levels of education system: – Schoolchildren, youngsters; – Vocational and higher education – Further education / lifelong learning Good progress achieved in modernisation of vocational education infrastructure As from 2016 – mandatory exam in chemistry or physics (renewed) in secondary schools

21. Association of Mechanical Engineering and Metalworking Industries of Latvia www.masoc.lv MASOC - Association of mechanical engineering and metalworking industries of Latvia Ezermalas 6K, Riga, LV-1006, LATVIA Phone: +371 67554825 Fax: +371 67089776 masoc@masoc.lv www.masoc.lv