The metal industry is one of the leading industry sectors in BiH. This sector is characterized by a solid human and resource base, as well as a long tradition that allows for the development of diverse activities. This industry has shown vitality in the post-war renewal of production and a readiness for the introduction of modern technologies. However, the industry faces many challenges.
Despite the high-quality standard and low prices internationally, most companies are subject to strong competition. The reason for this is that most products are largely homogeneous and offer little scope for competitive advantage from a technical perspective. On the other hand, the COVID-19 crisis and the resulting strain on international supply chains have meant that many larger companies have had to structure their supplier relationships on a more regional basis in order to prevent possible supply bottlenecks. Tradition and experience in the metal industry, high product quality, regional proximity to Western European sales markets and corresponding free trade agreements with the EU therefore make BiH increasingly attractive for buyers from Western Europe. A particular deficit of the BiH metal industry is the innovation ability of the companies. Products and services must be adapted to the respective market requirements. Although quality standards are met, there is a lack of modern organizational structures and processes, the introduction of modern production processes, gradual entry into the digital economy and digital networking with customers. Labour cost advantages cannot be maintained in the medium term if the path to digitization is not consistently pursued. Also, a large number of companies are product-oriented rather than market-oriented. This often results from a lack of understanding of the need to research and adapt to market trends and to act as a solution provider on international markets. The demands on the manufacturing industry are constantly increasing. High product quality and minimum standards in quality management (for example, DIN ISO 9001, etc.) will soon no longer be sufficient to survive in international markets.
The purpose of this study is to identify and provide recommendations for the metal sector in BiH opportunities to enter new markets and/or increase penetration of existing markets.
THE METAL INDUSTRY IN BOSNIA AND HERZEGOVINA – Performance and Export Analysis study was prepared within the EU4Business project, whose main goal is to increase the competitiveness and innovation of the economy in Bosnia and Herzegovina (BiH). The project is funded by the European Union (EUR 15 million) and the Federal Republic of Germany (EUR 1.1 million), and is implemented by GIZ, UNDP and ILO.
