The nation of Latvia has been looking to develop its manufacturing sector for a number of years with mixed results. However, a consistent period of investment from private companies and those subsidized by European Union funds are seeing the manufacturing sector move forward with a high level of confidence. In the past, the manufacturing sector was left to struggle because of the inability to keep up with demand, but this uncertainty could be coming to an end with new facilities being created over the coming years.
In the last few years, many customers have been looking to Latvia as a friendly nation for continuing their manufacturing processes long into the future. However, Latvian manufacturing plants have been hit by various issues, including the problem of a lack of investment in new facilities and machinery alongside a serious labor shortage. The inability of the Latvian manufacturing sector to upgrade its facilities and train new workers has led to a plateau in the sector across the nation. The arrival of a series of new facilities and training programs should lead to a rise in the productivity of the manufacturing sector funded by private equity and European Union funds.
Many experts believe the manufacturing sector in Latvia is currently performing below the level reported as the wood processing group has been at the heart of the sustained period of success of the last few years. Unfortunately, the falling price of wood in recent months could have a negative impact on the price of these products in the future.
Despite some pessimistic predictions for the manufacturing sector in Latvia, this business area could be in for a sharp rise in production as various new programs are being established. The reason for the optimism in terms of the growth of Latvia’s manufacturing sector is the latest programs and investments were agreed in 2017 and begun in 2018. This means the majority of major investment programs will begin production and post results over the course of 2019.