Manufacturers worry about export market sentiment
Manufacturing companies are worried about low demand from export markets, though future expectations of the sector are rather optimistic, according to the recent study by the Estonian Institute of Economic Research.
Some 25% of manufacturing sector leaders said that there was less demand in June than usual, while 29% of respondents said that getting orders from export markets is problematic. The companies, however, expect their volumes to grow in the coming months, while 16% companies noted that they are looking for new employees. Overall confidence in the manufacturing and construction sector has been worse in June as compared to May of this year and June of last year, according to the study.
The export orders of leading furniture producer Bellus Furniture OÜ are down by 10-12% this year, but the company is actively looking for new markets to compensate this fall. Door and window producer Viljandi Aken ja Uks AS said that it has received even more orders this year compared to the last season, but has felt market sensitivity and anxiety from some clients. The increasing cost of raw materials and pressure to increase wages is adding concerns, the company head told the business newspaper.
Source: Põlendik, K. (2013) Mure ekspordi pärast. Turud on tundlikud. Äripäev, 28. juuni.