”Despite the fact that the volume of industrial production has stagnated in the last few months, we believe that the demand in the European Union (EU) will be sufficient to continue the growth of Bosnia and Herzegovina’s (BiH) metal industry,” said the director of the Industry and Services Sector of the Federation of BiH (FBiH) Chamber of Commerce, Almin Malisevic.
The export of the FBiH metal industry for the first six months of this year amounted to 2.6 billion BAM. Malisevic noted that the export of the electrical industry amounted to 477 million BAM, so the export of the metal and electrical industry amounts to more than three billion BAM. Compared to the same period last year, when the export of the FBiH metal industry amounted to 1.73 billion BAM, that is a growth of 50 percent.
”The main conclusion when we talk about the situation in the metal industry of the FBiH is great instability and uncertainty. Namely, after ten successful years, especially in 2018 and 2019, the COVID-19 pandemic occurred, which heralded a period of great challenges. New problems arise, primarily due to the difficulty in transporting goods and services, and the situation culminated when the war in Ukraine began. There was a shortage of certain raw materials used in the metal industry, long delivery times, which caused a huge increase in the prices of almost all raw materials,” Malisevic stated.
Bearing in mind the proximity to the EU, as well as the fact that BiH’s metal industry is recognized as stable, reliable, and equipped with the necessary equipment and personnel, as he added, there was an increased demand for parts and products from companies from BiH.
”Next winter will certainly bring new challenges to BiH companies. This industry is known as a large consumer of electricity and gas. As parts are exported in dozens of trucks every day, the consumption and price of diesel fuel is also not negligible. Due to inflation and price increases, it is very difficult to plan business, and every new contract is a double-edged sword,” Malisevic emphasized.
It is known that the products of BiH’s metal industry mostly end up in the EU market, so any disruption in the EU has a significant impact on BiH as well. Currently, as Malisevic said, due to the increasing prices of energy sources, the European metal industry is losing its competitiveness in the world market. Steel production in Europe is in decline and this may lead to new problems for BiH companies as well.
”Indeed, there are many problems that limit and slow down the development of the metal and electrical industry. We can classify them into two categories, internal problems that we can solve ourselves and external global problems that we have almost no influence on. Legislation needs to be improved. I am primarily referring to the Law on Contributions and the Law on Income Tax. Passing quality laws modeled on the environment and the EU will provide a better standard for workers and less outflow to EU countries. The lack of labor is increasingly evident,” said Malisevic, adding that there are still many laws that can be improved and promote economic growth.
“Iron, steel, and non-ferrous metals have risen in price drastically. All raw materials and raw materials have gone up in price. Delivery deadlines have been extended, making it difficult for companies to fulfill contracted jobs. Energy prices have risen and we are really facing an uncertain winter and next year,” Malisevic concluded.
E.Dz.
