Montenegro must capitalize on the vast potential of the metal processing industry to boost its economic development, according to business leaders at a recent session of the Metallurgy and Metal Processing Industry Committee of the Chamber of Commerce.
The session, led by the Committee President, discussed key challenges and opportunities for the sector. Participants included the Vice President of the Chamber, and the Director of the Directorate for Industrial and Regional Development in the Ministry of Economic Development.
The Committee President emphasized the vital role metal processing played in Montenegro’s post-war economic recovery, and noted that with the right support and addressing workforce shortages, the sector could play a similar role today. He pointed out that significant investments had been made in the sector, signaling that the metal industry would intensify activities in the coming period. However, data for the first nine months of 2024 shows a substantial decline in the exchange of basic metals and metal products, with a 14% decrease in total trade compared to the previous year.
Exports of metal products saw a sharp decline of 39%, while imports also decreased by 4%. On a positive note, exports of iron and steel increased by 13%, and exports of copper products surged by 89%, reaching a value of 7 million EUR.
Despite these positive movements in some segments, key challenges remain, including liquidity issues, a shortage of skilled labor and a decline in aluminum exports, which are hindering further growth and development of the sector.
Entrepreneurs emphasized that improving the competitiveness of metal processing requires significant investments in outdated equipment. They called for the ministry to adjust its support mechanisms to enhance industry competitiveness.
The sector also seeks a liberalization of complex regulations on hiring foreign workers to level the playing field for local employers, as many workers are leaving for Western Europe. The complicated and inefficient procedures for hiring foreign labor further complicate filling vacancies and destabilize the sector.
To overcome these challenges, entrepreneurs propose creating a detailed action plan for the sector’s revitalization in collaboration with experts and relevant institutions. They also called for easier access to European Union funds and subsidies for purchasing new equipment, which would accelerate modernization.
They further recommended stronger cooperation with educational institutions to create a skilled workforce. A dual education system and retraining programs were suggested to ensure a constant supply of experts in line with market demands.
The entrepreneurs also proposed fiscal incentives for companies, such as exemption from profit taxes for reinvested profits in production upgrades and reductions in property taxes.
Strengthening inspection oversight to reduce unfair competition and combat the grey economy is a vital measure that the government must implement continuously.
These measures would enable the metallurgy and metal processing industry to achieve significant stabilization and become more competitive both domestically and internationally.
A representative from the Ministry of Economic Development presented the results of programs aimed at improving competitiveness and promoting energy efficiency in industry, announcing extensive consultations with businesses to tailor support in line with manufacturers’ needs.
Both entrepreneurs and government representatives agreed on the need for further collaboration in this area, with an emphasis on strengthening the education system and developing other initiatives to support the growth of the metal processing sector. Entrepreneurs also proposed creating a working group to involve industry representatives in the development of strategic documents and programs impacting their activities.
The Vice President of the Chamber of Commerce highlighted the importance of the Chamber as a hub for metal processors and the wider economy, calling for joint efforts to use campaigns that promote business activities and contribute to elevating the sector’s role in society.
The Chamber of Commerce will continue to monitor the sector’s progress and support finding solutions to improve the business environment and enhance the competitiveness of Montenegro’s metal processing industry.
Finally, the Committee Secretary presented the Work Program for 2025, which was adopted by members. The program will focus on improving the business environment and legislation, cooperation with institutions, international promotion, member education, organizing professional meetings and maintaining regular communication and support for members.
