Ajvazi explains why production in Kosovo is becoming increasingly expensive

Local producers in Kosovo are facing numerous difficulties that are directly harming their competitiveness. These include entering the free electricity market, rising production costs, a labor shortage, and legal changes that, according to them, often pass without consultation with businesses.

These views were expressed by the chairman of the Association of Kosovo Producers (OEK), Kushtrim Ajvazi, on “Përballje Podcast,” where he stressed that the manufacturing sector has been under constant pressure in recent years.

According to Ajvazi, one of the biggest problems has been the transition of businesses to the free electricity market, a process for which producers had requested a transitional period and consultation with the institutions.

“We warned that entering the free energy market would increase production costs. We asked for dialogue and solutions, but our concerns were not taken into account,” Ajvazi said, Telegrafi writes.

He underlined that the rise in the price of electricity, as well as fuel, gas and raw materials, has put Kosovar producers in a less favorable position compared with companies from countries in the region.

“When energy, transport and raw material costs rise, our product becomes less competitive. Meanwhile, other states use policies that support their industry,” he said.

Ajvazi also singled out the labor shortage as a serious challenge, linking it to emigration and the difficulty of securing qualified workers.

He said that manufacturing companies have increased wages, but according to him this has not been enough to ease the problem of the worker shortage.

“Today, one of the most serious problems is finding and retaining workers. Even though wages in the manufacturing sector have increased, the challenge remains great,” Ajvazi declared.

Regarding the minimum wage, he said the Association of Producers does not oppose raising it, but insisted that such decisions be made in consultation with the private sector and accompanied by policies that protect business competitiveness.

“We have not been against the minimum wage. We have asked for decisions to be made in consultation with businesses and for the effects they have on production to be analyzed,” Ajvazi said.

He added that producers are not seeking privileges or subsidies, but sustainable economic policies and greater cooperation with institutions.

“Our goal is to produce more, export more and create new jobs. For this, we need predictable policies and cooperation with the state,” Ajvazi concluded./Telegrafi/.