The Board of the Association of Metal and Electrical Industry of the Federation of BiH held a session on 11.12.2023, at which the situation in the metal and electrical industry of the Federation of BiH and BiH was reviewed. Unlike previous years, when the metal and electrical industry achieved very good results, 2023 brought stagnation and a decline in business. Most companies are facing reduced orders and demands for lower product prices. That the situation is alarming is confirmed by official statistical data on the decrease in the volume of industrial production in the Federation of BiH and export data. Total industrial production in the Federation of Bosnia and Herzegovina in October 2023 compared to September 2023 was lower by 2.9%. In October 2023, compared to October 2022, industrial production in the Federation of Bosnia and Herzegovina was lower by 3.4%. Monthly comparisons according to the areas of the Classification of Economic Activities of BiH 2010 show that industrial production in October 2023 compared to September 2023 in manufacturing was lower by 2.8%. Annual comparisons in October 2023 compared to October 2022 show that industrial production in manufacturing was lower by 4.1%. The export of ores, metals and their products is also declining, which is a very serious indicator that this industrial branch is moving in an unfavorable direction.
The importance of the metal and electrical industry in the Federation of BiH should be emphasized. Exports for the first nine months of 2023 were more than four billion KM, which is almost 50% of the total exports of the Federation of BiH. MES companies employ around 34,000 workers, and some companies were forced to reduce the number of employees due to lack of work.
According to announcements from the EU market, this is only the beginning of the crisis. A difficult period is expected at the beginning of 2024, and many companies have already sounded the alarm for action under extraordinary business conditions.
The Board of the Association of Metal and Electrical Industry will request an urgent meeting with the Prime Minister of the Federation of BiH and the Government of the Federation of BiH in order to present the situation in the metal and electrical sector and offer solutions that need to be adopted to mitigate the crisis. If there is a further deterioration of the situation on the EU market and no timely measures are taken, layoffs and shutdowns of plants will be inevitable.
