Juraj Sinay

A competitive automotive industry in the Slovak Republic requires an efficient supply chain 

For the Slovak Republic, an efficient supply chain is vital as in 2015 and in 2016 more than one million cars rolled off the assembly lines of Slovak final manufacturers (OEMs) and the share of Slovakia of global car production now exceeds one percent. In addition in 2016, the foundation stone of a new car manufacturing plant of Jaguar Land Rover in Nitra was officially laid. As long as there are no unpredictable changes on world markets, the Slovak Republic the number of produced cars will continue in the future. 

The continuation of these trends, however, will required conditions that not only assist the current development of the automotive industry but are also part of a long-term strategy. With the arrival of the new investor and following the changes to the political and economic grouping in the EU, it can be expected that new companies will make investments in Slovakia in the subcontracting chain.

Slovakia is a major automotive country in the CEE and has a well-developed supply chain. Suppliers make essential contributions to the total results of the automotive industry. There is every reason to anticipate continued development, not only in connection with the arrival of the new OEM investor in the Nitra region, but also in connection with the launch of new types of automobiles produced by the current final manufacturers, i.e. VW, PSA and Kia in 2018.  

The pressure on increasing the flexibility and efficiency of the operation of the whole value chain will result in the need for the localization of sub-deliveries, connections between suppliers and customers, streamlined material flows and a further shift of competencies to suppliers at individual levels. Applied R&D must be integrated as regards activities of all companies that want to make an impact in the automotive industry. Major investments can be expected in this area in the near future, in particular with regard to supplier companies.

The Automotive Industry Association of the Slovak Republic is ready for these changes. We know that as a professionally-oriented employer organization, we must help create the long-term sustainability and competitiveness of the automotive industry in Slovakia. Therefore, we are creating conditions to ensure a sufficient amount of qualified manpower in line with the future needs of the industry. In addition, we also help create conditions for the cooperation of scientific and research institutions with the industrial companies with the goal of establishing a basis for the future innovation of processes, technologies and products, especially regarding supplier companies.

One of the decisive factors for the sustainable development of the automotive industry in the Slovak Republic, perhaps the most important one, is a skilled labour force. This is why intensive professional development is strategically important (the need for dual education) at all levels. 

The efficiency of the automotive industry was one of the starting points of formulating the Strategy of Smart Industry in the Slovak Republic. The application of its principles and elements, such as automated systems based on comprehensive digitalization of all the information in the supply chain will require sophisticated management whose development and subsequent implementation will necessitate high-quality education. The aim is to satisfy the requirements of the end customer and this trend needs to be applied for final manufacturers, and throughout the supply chain, though not always at the same quality level. 

This year´s survey conducted by PwC covers all the above areas, and is also addressed by the strategy of the Automotive Industry Association for 2016 - 2020. In cooperation with its partners, the association seeks to meet the objectives of the strategy and thus help create conditions for the future of a competitive car industry, which will also mean a prosperous Slovak Republic.

Juraj Sinay
President
Automotive Industry Association of the Slovak Republic