site.btaDeputy Economy Minister: Bulgaria's Engineering Sector Seeks Growth Through High-Tech, Innovation

The prospects for Bulgaria's engineering sector lie in developing high- and medium-tech engineering, said Deputy Minister of Economy and Industry Nikolay Pavlov here on Tuesday, during the opening of three industry exhibitions at the Inter Expo Centre: MachTech&InnoTech, Inter Drone Expo, and COPIS.

Pavlov spoke of Bulgaria's competitive advantages in the global engineering industry, pointing to its "well-developed infrastructure" and fast internet connection. "We also have highly qualified personnel in technical sciences and mathematics," Pavlov said, highlighting the country's strengths. He noted that future growth will come from high-tech exports and investments in value-added production, particularly in Industry 4.0 technologies.

Pavlov also underscored the importance of the machinery industry, describing it as a "traditionally developed and structurally significant sector" that contributes about 7% to the manufacturing industry's added value and employs over 30,000 people.

He emphasized Bulgaria's industrial growth, stating, "In 2021, industrial production in the machinery sector recovered to pre-crisis levels with a 16% increase. The following year, 2022, saw further growth of 13.5%, and the turnover index in the industry rose by 18.2% in 2023."

He further noted the strong performance in exports, explaining, "The export of machinery and equipment has shown steady growth, with a total increase of over 200% between 2010 and 2022. In 2022 alone, exports rose by 30%, reaching EUR 2.7 billion, accounting for nearly 7% of the country's total exports." Pavlov added that the trend continued in 2023.

Pavlov also highlighted the importance of the MachTech&InnoTech exhibition, calling it "a key event for the industry in the Balkans and Eastern Europe." He said that with over 180 exhibitors this year, the exhibition is transforming the capital into a hub for innovation in the sector.

At the opening of the MachTech&InnoTech, Inter Drone Expo, and COPIS exhibitions, several industry leaders shared insights on the challenges and opportunities in Bulgaria's industrial sector.

Industrial Capital Association Governing Board Chair Vassil Velev spoke of the impact of external and internal factors on the sector, noting, "We are in a perfect storm," exacerbated by "crude administrative intervention in the labour market, driven by populism of political actors against the background of perpetual snap elections" and high energy costs.

Bulgarian Industrial Association President Dobri Mitrev spoke of the resilience of businesses and their drive for innovation, saying, "Only this will put us on the final stretch on par with our partners." He added that the industry is "hungry" for new technologies and opportunities, urging the State to shift from sanctions to active support for business.

Bulgarian Machine Building Branch Chamber President Violin Nenov spoke of the significance of the sector, noting that mechanical engineering products now represent over 10% of Bulgaria's GDP.

Executive Director of the Bulgarian Association of Electrical Engineering and Electronics Orlin Dimitrov noted the steady growth in the mechanical and electrical industries, stating that both sectors recorded increased exports last year and predicting continued growth in 2023. However, he cautioned about the potential impact of changes in the European Union.

Aviation Industry Association Chair Todor Ivandzhikov called for greater State support in the drone sector, saying, "We are seeking investments for various types of drones and require assistance from the ministries" to market these products.