International automotive component manufacturers, which have invested hundreds of millions of euros in Romania over the last few years, say it is getting increasingly difficult to find skilled personnel. As a result, wages paid to employees will be growing fast.
"The labour market in Romania is overheated already, which could lead to personnel shortage and most likely to significant wage increases. It is a good place for established companies, but newcomers will find a very difficult job market situation," the representatives of Continental AG, which has five factories in Romania and is one of the main investors in this field, told ZIARUL FINANCIAR.
The same goes for Bos Automotive Products Romania, the subsidiary of German BOS GmbH & Co.KG.
"Skilled workforce is not any more that flexible to get as before in our area (the company's manufacturing facilities are located in Arad i.e.) because a lot of new foreign investments were made and unemployment is low. Low labour cost still exists but the costs (wages i.e.) are rising. We watch this carefully," said Ger Joris, general manager of Bos Automotive Products Romania.
The company is preparing to expand the activity of its factory in Arad, which required additional staff, yet recruitment was very difficult, because of the lack of skilled personnel.
The business of German Draxlmaier group, which has five factories in Romania, was also affected by human resources costs. The administrative manager of the company, Ferdinand Zilcher, has recently said he had seen wages rise beyond forecasts for the 17,200 employees.
Lack of workforce in Hunedoara and Alba counties due to emigration is also a big problem for the Japanese at SEWS (Sumitomo Electric Wiring System), who came in Romania in 2000. Officials of the company that operates four factories said the growth pace of turnover in the first half was negatively influenced by the lack of a skilled workforce in the area. In addition, SEWS anticipates a possible labour exodus, regardless of the skill level, once Romania joins the EU. The automotive industry and its related fields have attracted 5.8 billion euros in investment thus far, according to the data of the Association of Carmakers in Romania (ACAROM).
This value includes both foreign direct investments and those made by the hundreds of domestic producers.
Investments could go up to 7 or 8 billion euros on medium term, and the business of the automotive industry could reach 9 or 10 billion euros by 2010, according to market estimates.
The Western area of the country has drawn the biggest foreign investments in the automotive component industry over the last five years, with over 4,000 jobs created in Arad county in the past year alone, as a result of a new wiring plant being built by the Delphi Packard group.
The main reason behind this was the proximity to Hungary, so that a truck loaded with products could travel between the Romanian plant and the central warehouse in Germany, for instance, in less than a day.
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