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Manufacture of machinery and equipment n.e.c.

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NACE 2002 - 29 Manufacture of machinery and equipment n.e.c.

Mechanical engineering is a traditional Czech industry with pay levels slightly above the average and robutst exports to Western Europe as well as to Eastern Europe where Czech manufacturers make use of the growing potential of the local markets. Employment in mechanical engineering is expected to drop as a result of growing competition in global markets and a decrease in demand on the part of key customer segments that are stricken by the economic crisis. This poses a threat both for low-skilled workers and those who only received short training in the industry and therefore have a weak foundation for career progression and  skills enhancement.

Then there are workers in construction, technology and design whose long-term prospects in terms of employability are very good, particularly if their specialisation is combined with knowledge in mechanical engineering/light-current electrical engineering/ICT.  This applies to both students and recent graduates, and to employees who intend to expand their qualification in this respect. The implications are therefore similar to those related to occupations in the car industry.

Mechanical engineering as a whole will continue to account for a large portion of employment in the Czech industry. One of the long-term weaknesses of Czech mechanical engineering is that it has been excessively focused on supplies of components or pieces of machinery to general suppliers (particularly Germany), whereas its the capacity to implement large investment projects (i.e. manufacturing lines in industry or in energy) is weak. As the demand from Western Europe gradually cools down it will be important for the industry to focus more on supplies to rapidly growing markets in Eastern Europe, Asia and Latin America. However, success in these markets is conditional on growing occupational and qualification requirements – both at the level of management and technology, trade and logistics. Language skills and skills in overcoming cultural differences are not the only issues that matter. Entering new markets requires better management of projects and the supply chain, and the capacity to attract customers. To succeed it is necessary to ensure a better combination of technical, analytical, management and communication skills.

As with the manufacture of metal products and electrical machinery and equipment, part of the production is designed to satisfy a rapidly growing demand in energy. However, as regards large investment projects in energy, there is a shortage of designers in the Czech labour market (to design them) and of mechanics and technologists (to do the manufacturing part).   This segment should be significantly strengthened in terms of human resources.

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