Following the period of economic turnaround witnessed in Slovakia, the country is increasingly becoming an attractive destination for investment in production facilities, particularly for the automotive industry.Do you want to join the successful investors in Slovakia?Become a successful supplier, provider, …. Join us ! We will open a company for you and provide all the relevant services for you.
The automobile industry has effectively become the most noteworthy aspect of the Slovak economy, with growing research, development, and a more educated labour force. Slovakia has become the international front-runner for automobile production per capita.
Jaguar Land Rover expanding
Other locations were considered, but Slovakia’s proximity to the United Kingdom, where JLR is headquartered, as well as its central location within the company’s largest market, nearness to Germany, a major automobile-parts builder, and low labour costs made it the most attractive option.
JLR has experienced five consecutive years of growth, selling 462,678 cars in 2014, up 9% from the previous year. The company needs to ensure that it is building a solid and stable foundation, which will become essential in its ambitious goal of becoming a major competitor in the luxury vehicle market.
The Slovak automotive industry
Slovakia’s auto-industry makes up the largest single aspect of its economy.
43% of Slovakia’s industrial production lies in the automotive sector, building the most cars per capita in the world. Unemployment has improved recently, lowering from 13.2% in 2014 to 11.8% in the first half of 2015.
The inception of JLR in the Slovak economy will provide people with more jobs, as well as boosting the growing demand for Slovakian-trained experts, and a need for work in research and development.
Lack of diversification, but with increased transparency
Becoming more reliant on the automotive industry will develop the Slovak economy in the near future, but the reliance on the industry may cause long-term risks for companies involved.
If demand for vehicles decreases in the future or differences emerge in the industry, the effects on the hugely invested Slovak economy may be devastating. Diversification should be the number one priority of the government, in an attempt to maintain growth in the industry while creating jobs in others.
Having become the world leader in building cars has reinvigorated the Slovak economy, and JLR’s expansion shows that the industry is ready to continue growing. Regardless of this fact, investing in just one sector is never a good idea, even if it may seem very positive at the time.
For the good of the economy and all companies invested, it is imperative that the Slovak economy begins a gradual diversification, maintaining the auto industry, but also investing in new endeavors.
Besides the lack of diversification, many other positive changes to the Slovak government have been seen recently, including the introduction of new laws to tackle corruption.
Recent growth and a significant shift in anti-corruption is attracting companies, creating a specialized economy for the automakers of the world.
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