The Swiss company ABB plans to cease production in its low-voltage electrical apparatus factory in Kłodzko by the end of 2024. About 600 employees are expected to lose their jobs. At the same time, the Polish household appliances’ manufacturing sector is losing to foreign competition. What could be the reasons for this, and how can they be addressed? Mikołaj Zając, a labour market expert and president of the advisory company Conperio, provides an insight.
“The past years were filled with regulatory changes that complicate development and investment planning. In recent months, there have been a few exceptions that may inspire optimism, such as the announced Intel plant, which will be a place for semiconductor integration and testing. However, it should be remembered that their production will take place in Ireland and Germany. The situation is difficult, being impacted by many elements that have occurred in recent years: the pandemic and its consequences, most notably felt in the logistics sector; the Russian invasion of Ukraine, which caused an energy crisis but primarily still high inflation in Poland with various effects. Recent reports about problems at country borders also do not inspire optimism among potential investors. Under such conditions, the Polish market is less attractive to large corporations, which prefer to turn their gaze towards Sweden, Turkey, or China,” says Mikołaj Zając, a labour market expert and president of the advisory company Conperio.
The End of Production and a Challenging Market
“There was information in the media that the Swiss company ABB will cease production in its low-voltage electrical apparatus factory in Kłodzko by the end of next year. As a result, a total of 600 employees will lose their jobs. Company representatives informed that this is due to changing customer needs and has nothing to do with an assessment of the local team’s performance. At the same time, a new plant will open in Sweden, employing 1,300 people. Data from the Union of Employers in the Household Appliances industry shows that their sector is losing to Chinese and Turkish companies. These examples confirm that the current global situation forces companies to change their supply chains and produce goods closer to the end consumer,” says the expert.
Higher Employee Qualifications and a Secure Situation in Workplaces
“In the current situation, employees and entrepreneurs should take care of improving skills and organizing workplaces. About half of low-skilled workers face unemployment problems. The scale of the problem is significant, and avoiding it requires mastering new skills by workers for whom jobs are currently being created. Excellent work organization, including dealing with sick leave in the workplace, helps companies win new contracts. Fulfilling agreements promptly is fundamental to building a strong market position, and the reliability of Polish factories should currently be our main bargaining card”, concludes Mikołaj Zając.
