Otto Pukk, President of Incap Corporation and Chairman of the Estonian Electronics Industries Association (Eesti Elektroonikatööstuse Liit), participated in the Industry News (Tööstusuudised.ee) survey of industry leaders regarding the outlook for 2022 – including Incap’s own plans to build a third factory in India, invest in new machinery for the factories, and continue the group’s growth strategy.
According to Otto Pukk, the concerns will not go unnoticed during this year: “Problems with the availability of high-quality labour will certainly continue all over the world and especially in Western countries.”
WHAT DO YOU EXPECT AS A LEADER FROM THE BEGINNING OF THE YEAR AND WHAT DEVELOPMENTS DO YOU SEE FOR THE (ELECTRONICS) INDUSTRY AND ECONOMY IN GENERAL?
I am expecting an exciting year! There are certainly darker clouds on the horizon, but there is also sunshine behind them. As a company, operating in such an environment definitely means that we need to be dynamic and accept some challenges to do well with your team.
WHAT DEVELOPMENTS DO YOU SEE IN THE RAW MATERIAL AND SUPPLY CRISIS, RISING PRICES, AND LABOUR SUPPLY? HOW BIG OF A PROBLEM CAN WAGE PRESSURE BECOME?
Both raw material and supply problems will certainly continue to some extent this year. At the same time, investments have already been made in this area and new variables, which must be taken into account, are being added – whether it is the Chinese energy crisis, changes in the course of the pandemic, or something else.
There are certainly problems with the availability of high-quality labour throughout the world, especially in the Western countries. We need to find solutions and address automation. We should also place more emphasis on ensuring future offspring in our sector, and given that we work in global value chains, the global workforce should be available to businesses.
It is not worth worrying so much about the pressure of wage growth in the industry at the moment, because the share of wages in our industry is not so decisive. However, any increase in costs is always important, and as entrepreneurs, we always keep this in mind when planning our work.
WHAT ARE THE BIGGEST PLANS AND INVESTMENTS OF YOUR COMPANY AT THE BEGINNING OF THE YEAR?
We will continue to work on our major investment projects, in particular the construction of a third factory in India. We will definitely continue to invest in new equipment to be at the forefront of offering new technological solutions to our customers. We will also continue the growth strategy of the entire group, both through organic growth and possible acquisitions.
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