On 28–30 November, Kipsala International Exhibition Centre will host Tech Industry, one of the most important engineering events in the Baltic region over the past five years. Tech Industry 2024 will bring together 253 companies from 18 countries and welcome at least 18 000 professionals from all over the world to discover the latest innovations in mechanical and metal engineering. The Tech Industry Business and Innovation Forum will take place at the same time and will focus on Latvian manufacturers’ offer to new export markets and their ability to create high added value products.
The mechanical engineering and metalworking industry in Latvia has experienced remarkable growth in recent decades. The industry’s turnover has grown from EUR 385 million in 2000 to EUR 2.7 billion in 2023. Exports have increased from EUR 272 million to EUR 2.1 billion over the same period, confirming the industry’s important role in the Latvian economy. Growth has been particularly rapid between 2016 and 2023, when average annual growth rates were in two digits. More than 80% of Latvia’s production is exported to 100 countries worldwide, but the main export markets are Europe, especially the Nordic countries – Sweden, Norway, Finland and Denmark – as well as the European mechanical engineering hub – Germany.
Toms Grinfelds, Chairman of the Board of the Association of Mechanical Engineering and Metalworking Industries (MASOC), points out that about one third of the companies in the industry are integrated in international supply chains, supplying components and intermediate products to various industrial sectors. The Chairman of the Association cites the ability to adapt to the specific needs of customers and create unique, tailor-made solutions as a key advantage of Latvian companies.
Preparing for a manufacturing breakthrough
Although the industry has grown dynamically over the past decade, it has been affected by geopolitical and economic challenges over the past two years. Russia’s aggression against Ukraine and its consequences have contributed to a slowdown in growth across Europe. However, as Toms Grinfelds points out, the mechanical engineering and metalworking industry is characterised by its ability to recover from economic shocks: "The development of the mechanical engineering and metalworking industry is closely linked to the situation in other manufacturing industries, and the slowdown in growth due to the geopolitical situation in our industry is being seen across Europe. But the good news is that mechanical engineering and metalworking are indispensable industries – lower growth periods are always followed by a sharp breakthrough to compensate for the drop in production in the previous period, so the industry is now preparing for more intensive production in the future."
High added value products
In Latvia, mechanical engineering and metalworking companies are characterised by a high level of innovation, which is often directly linked to the development of higher added value products. Statistics compiled by the Association show that about a third of companies in the industry focus on the development of unique products, which creates a competitive advantage in international markets. This strategy allows them to strengthen their position not only as suppliers of intermediate products but also as key players in the development of innovative technologies.
Toms Grinfelds emphasises that it is investment in new technologies, automation and artificial intelligence solutions that help to improve the efficiency and competitiveness of companies in the industry. On the one hand, companies continue to invest in automation and digital solutions to increase their productivity. At the same time, many companies are investing in research and new product development, bringing to market new products and technologies that help automate processes, reduce energy consumption and reduce the environmental impact for customers in many other industries, such as modernised woodworking machinery, unique solutions for the energy sector and even the development of military equipment.
Leaders in machine vision equipment manufacturing in the Baltics
One of the most prominent innovation leaders is the Latvian company Zippy Vision, which makes scanners and other machine vision equipment. These machines can measure and optimise wood processing according to various parameters, detect even the smallest defect in the wood that may go unnoticed by the human eye, and offer the best sawing solution to minimise the loss of raw material and, if necessary, effectively replace humans at various stages of woodworking and production. The company has been in business since 2017 and has no competitors in the Baltics for top-level machine vision production. “Thanks to such innovative solutions developed by the company’s team of engineers and mathematicians, Zippy Vision can successfully compete on the international market with the industry giants that have been operating in the wood industry for many decades,” says Gundars Kulikovskis, Co-owner of the company, about the company’s export advantages.
Military industry and international projects
In recent years, the military sector has played a significant role in the development of the industry. Latvian companies offer drone technology, modern solutions for the defence sector and energy-efficient equipment, which is also highly valued in foreign markets. For example, the metalworking company SFM Latvia has become a supplier of the Patria 6 x 6 armoured vehicle chassis to the Finland-based international defence and technology company Patria. The company also supplies parts for other projects, such as 8 x 8 armoured vehicles, and the military industry currently accounts for around 30% of the company’s turnover.
Process engineering achievements
Although 80% of the mechanical engineering and metalworking production goes abroad, the industry is no less focused on the domestic market and the Baltic region. For example, PERUZA, a process engineering and production equipment design and manufacturing company, can be proud of its extensive experience in the food processing industry, and its equipment can be found in well-known Latvian companies such as Balticovo, Latvijas Balzams and Food Union, successfully competing with the offer of foreign equipment manufacturers.
The exhibition and forum will bring together industry professionals from 25 countries!
For three days, Europe’s and the world’s leading equipment manufacturers will showcase the latest metalworking and industrial equipment in action, mechanical engineering and welding equipment, power tools, airflow technology and hydraulic engineering at Tech Industry 2024 in Kipsala.
The exhibition will be accompanied by a major Tech Industry Business and Innovation Forum organised by the Investment and Development Agency of Latvia, the Association of Mechanical Engineering and Metalworking Industries of Latvia and the International Exhibition Company BT 1.
On 28 November, the International Engineering Conference will bring together professionals from the mechanical engineering industries from different countries to discuss the future directions and challenges of the industry. Latvian Competence Centres from various industries will present their innovations – from automated solutions for maintaining wind parks to adapting 3D printing technology for aviation manufacturing. Registration for the conference is open until 27 November: www.techindustry.lv/lv/forum-registration
On 29 November, Latvian manufacturers and foreign buyers will hold a B2B matchmaking event for new international collaborations, bringing together developers, manufacturers, suppliers, potential customers and partners. So far, 70 Latvian manufacturers and 51 foreign companies from the USA, Austria, Denmark, Italy, Finland, Spain, Ukraine, Germany, North Macedonia and Sweden have confirmed their participation in the matchmaking event. Registration for the matchmaking event: https://ej.uz/TechIndustry_B2B
For a detailed programme of Tech Industry 2024 events, please visit: www.techindustry.lv/lv/events