Author: Volen Chilov
Lack of personnel and decline in Germany weigh on the Bulgarian electrical industry
The Bulgarian electrical industry has deep traditions. Currently, it is a key sector for the Bulgarian economy with the largest contribution to Bulgaria's exports. It has made a huge contribution to the technological progress of our country and is most closely connected to all spheres of public and economic life. Today, we produce a wide range of products - electrical appliances for the energy sector, cable forms for cars, integrated circuits, refrigerators and batteries. This was said by Eng. Orlin Dimitrov, CEO of BASEL, in the program "Clean Energy" with host Veronika Denizova.
The strongest market is the EU - 70-71%, with 23% of exports directed to Germany. The slowdown of the manufacturing sector in Germany is already affecting the sector in the country, with a 3.2% decline in exports in 2024.
Lack of personnel and decline in Germany weigh on the Bulgarian electrical industry
The Bulgarian electrical industry has deep traditions. Currently, it is a key sector for the Bulgarian economy with the largest contribution to Bulgaria's exports. It has made a huge contribution to the technological progress of our country and is most closely connected to all spheres of public and economic life. Today, we produce a wide range of products - electrical appliances for the energy sector, cable forms for cars, integrated circuits, refrigerators and batteries. This was said by Eng. Orlin Dimitrov, CEO of BASEL, in the program "Clean Energy" with host Veronika Denizova.
The strongest market is the EU - 70-71%, with 23% of exports directed to Germany. The slowdown of the manufacturing sector in Germany is already affecting the sector in the country, with a 3.2% decline in exports in 2024.
German industry is a large consumer and buyer of modules, products and components. However, after the Covid crisis and the sanctions against Russia, German industry experienced difficulties that also affected our companies.
However, Eng. Dimitrov said that there is no risk of stagnation in the industry.
I hope that the measures adopted at the EU level will restore these positions. In our opinion, this is a temporary situation due to the current situation.
In this situation, Bulgarian companies are looking for new markets outside the EU - South and North America, as well as Africa. But the problem with competitiveness remains. According to BASEL, 60% of public tenders are won by countries outside the European Union, such as China and Turkey. Dimitrov commented that, according to the organization, companies from countries that have not signed the Central European free trade agreements, in which there is a proven non-market economy, should be excluded.
Import duties from the United States may have an adverse effect on the electrical industry. Since it is closely linked to the EU, any delay in the supply of components for cars or other equipment would negatively affect Bulgarian companies.
Another serious problem is the lack of labor in the sector. According to the guest, there are two reasons - some of the technical specialists are concentrated in the state sector, which prevents them from working in the private sector. However, there are people on the market, but they do not want to work or do not want to work in this sector.
For certain positions, salaries in the electrical industry are chasing salaries in the IT sector due to the lack of people.
While the import of personnel is still a slow process. Companies are already attracting employees from countries such as Uzbekistan, the Philippines and India. This is done on the basis of specific needs. In addition, the sector is attractive to these specialists, and the management remains satisfied with the results of these employees.
The other aspect of this problem is the broken connection between industry and vocational education.
The problem begins with vocational education, but continues later with academic institutions.
Orlin Dimitrov stated that vocational training should be strengthened and active work should be done on dual education programs, which combine learning and practice, similar to models from Switzerland and Austria.
Watch the entire conversation in the video.
Source of photo design: BASEL
Source of article: Bloomberg TV Bulgaria