Benchmark Study 1

IPP 1st BENCHMARK REPORT
Key sector advantages:
o availability of vast domestic and imported wood resources
o skilled labour force in a historically traditional industry
o established timber-processing sector including proven R&D capability
In Latvia, the wood processing sector is the largest manufacturing sector in added value. It has been
experiencing very high growth in added value although it has declined in employment, with a large gain
in productivity. However, the crisis in 2008 has hit the sector strongly and it experienced a 26.3%
decline in value added, mainly in wood and wood products and in furniture.
Besides being the most specialized in the sector of all European Union countries, Latvia is in the top
countries in terms of investment rates and labour competitiveness in all subsectors which has enabled it
to grow consistently. In terms of subsectors, Latvia is heavily specialized in wood and wood products
and among them in the least processed products: sawn wood. The subsectors and product types with
the largest growth have been builders’ carpentry, wooden containers, other wood products and
printing.
In addition, Latvia is well developed in wood energy and has enough raw material from the sawmills to
grow strongly in this subsector. The wood energy subsector is very developed in Latvia. Despite being a
relative small country, it is the 7th country in European Union in terms of pellets production capacity,
even though there is little local demand for it. Unlike pellets, wood biomass is widely used for energy,
especially for heating purposes, and it is the main source of renewable energy in Latvia.
Textile
Today, the textile sector is an important part of Latvian industry and combines the best of traditional
knowhow with industrial and technological knowledge. This expertise has lead to the creation of high
value-added products such as silver and amber threads and other innovative technologies. The
industry is highly export-oriented, particularly the lingerie segment.
The main textile industry sub-sectors are lingerie manufacturing, sewing, weaving, technical textile
manufacturing and artisan textile production. The industry is dominated by sewing companies
acting as outsourced production for EU brands. This is convenient as production and delivery times are
short and technical capabilities are advanced – starting from embroidery, ending with laser cutting and
waterproof-garment production. These sewing companies provide customized services, including
pattern and other design services. However, there are also a number of local small and medium
companies who are working on their own jersey, knitwear and other material collections, bringing
forward the idea of natural and ecological clothing.
While home textiles from linen, such as tablecloths and curtains are very popular among the local
population, the most exclusive linen items such as accessories and shawls are being highly appreciated
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