Branch Development

11.12.2007

 

Metal industry integrates three industrial branches which are according to the Standard Classification of Activities (SCA) the following: DJ/28 - manufacture of metal products, DK/29 - manufacture of machinery and equipment (excluded are electrical machinery and equipment) and DM 34/35 - manufacture of transport equipment or, in other words, means of transport. In Slovenia, which has all the characteristics of an industrial country since the share of employees in industry stands at 38 percent, more than 80 percent of total Slovenian exports of goods and services fall on industrial products; companies pertaining to metal industry branches employ over 51,000) of all people employed and generate over 4 billion EUR) of the industry exports.

 

Although its beginnings go back to the pre-World War I period, the metal industry experienced its greatest development in the 20th century, namely in the 1960's and 1970's.

 

Metal industry branches achieved their largest production volume in 1986; the following years saw a gradual decrease of production and after the breakup of the Yugoslav federation metal industry branches suffered a great loss of traditional markets.

    

The number of workplaces was reduced by 45 percent due to the transitional process, aimed at the adjustment of industrial production to western European markets which lasted until 1995 when the metal industry experienced a new growth. The great efforts for the improvement of both product range and industrial services, the increase of quality and reliability of production and operations, were particularly after 1997 followed by an increased economic efficiency of the metal industry companies.

        

Intensive export marketing and the process of Slovenian accession to the European Union single market were in the metal industry closely associated with the intensive adjustment to technical regulations of the European Union. The process of technical regulations harmonization, lately especially to the environmental standards, intensively continues in the metal industry. 2006 was exceptionally good year for these branches. Growth increases were on highest levels since 2000.

    

Operating and development processes in economic companies pertaining to the metal industry branch are happening in the circumstances and conditions of the globalization of both foreign and domestic industrial environment and the concentration of industrial systems. This means that particularly in the field of manufacture of transport equipment, energy equipment and other leading programmes of machine building and metal-working industry an increasingly lower number of multinational companies control the market and technology.

 

Within Slovenian metal industry some large and medium-sized companies are by means of products and facilities strengthening their independent market and development situation on international regional level and also in a broader perspective. A number of companies operate in market niches of special machinery and metal products, with their flexible production enabling them to meet changeable customer requirements and demands. A large number of companies develop and strengthen their position of reliable and development-intensive suppliers to the leading European automobile industry companies, machine building, construction and other mainly industrial final production companies. For quite some time now the supply industry has been making use of the possibility and services of electronic operating for the purpose of exports promotion.

 

Author: Janja Petkovsek, Director of the Metal Processing Industry Association