– It is true that there is currently no recession, but it is not easy to remain healthy for long in such an environment, and we hope that a recession will not occur. As for Kraš, the total labor cost has not increased, and we are currently more productive with fewer people. It is not easy to find workers at this time, which is also a topic that significantly affects the operations of domestic companies. We are currently in the phase of seeking labor in some other markets – commented Mario Müller, a member of the Management Board of Kraš, at the 10th Lider Export Conference.
Explaining how the company’s operations currently look, Müller added that the state definitely needs to intervene in such situations with appropriate and carefully chosen measures, as they can have both positive and negative effects on the economy.
– We currently have more orders than we can deliver. We have a very attractive product, and in 2022 we went through a very difficult period, so we had to adapt to financial possibilities and reduce the quantity of products. We are receiving seven thousand tons of raw materials with which we will fill our capacities to one hundred percent volume. We will utilize that capacity until the end of the year, so the recession effects will probably not show up with us – explained Darko Pappo, a member of the Management Board of DIV Group.
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Salaries are rising faster than their profits
Their products are universal, Pappo adds, and do not depend on marketing moves such as advertisements or design. They always have their end users, but without significant added value – so the focus must be on quantity. Other markets are limited because the final price is affected by transportation costs, which complicates exports, and it is easy to conclude that the companies that are closest to the end user are competitive. The state, Pappo believes, must certainly contribute during times of strong inflationary (and potentially recessionary) pressures on the economy.
– There is no recession, growth is still above ten percent, but not over 20. We have passed on costs to prices as much as we could, but especially external costs have risen. However, salaries have risen the most, significantly more than in previous years. The total salary cost has increased by more than 30 percent in our company, where salaries are rising faster than their profits. We must react to such changes. The state sets the rules, and if they are well adapted to the economic situation, we will all benefit from it. We must not forget that a company is made up of its employees, who need to be protected and invested in – stated Boris Popović, owner of Alarm automatika.
