Many Eastern European countries are poised to join the European Union in 2004, and this will have a significant impact on UK businesses. A team of 24 Master's graduates of the Department of Manufacturing Engineering have returned from a visit to the Baltic States of Estonia, Latvia and Lithuania to see these opportunities at first hand. They presented their findings last week in a symposium and are also publishing a report.

During their two-week visit to the Baltic States the students visited over 40 manufacturing companies to assess economic and operational conditions. Businesses visited were a representation of the full spectrum of industries across the countries. The research investigated topics of current interest to sponsors, namely manufacturing best practice, e-business, sustainability and macroeconomic issues.

The study identified the Baltic region as a vibrant and up-and-coming area, with each country having unique political, cultural and social characteristics. Estonia was found to have the strongest links with Scandinavia, whereas Latvia and Lithuania possessed stronger links with Russia. Estonia was the most technologically advanced, Latvia's geographical situation lent it to being an operational centre and distribution hub, and Lithuania had the highest density of manufacturing operations.

The group concluded the Baltic countries will be able to adapt to EU membership, and the economic outlook for the region is very positive. Government reforms have made the region very attractive for foreign investment. Overall there is an excellent IT infrastructure and high IT literacy amongst the Baltic population.

The region is most suitable for high-value added manufacturing operations (e.g. finishing and assembly of products for distribution around Europe and Russia) because of the high-skilled, moderately low cost workforce available. However, the rapid rate of growth experienced by firms means that some aspects of manufacturing practice have something to be desired, especially in areas of health and safety and visual management.

Caroline Westall, the project leader, said:

"The project was a great opportunity to consolidate the skills students gained during their degree. It not only generated new market information of interest to British businesses, but also allowed students to see topical manufacturing issues first hand just prior to starting their careers. It therefore provides value for future employers in terms of the experience students bring with them."

Image courtesy of PhotoDisc

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