site.btaBASEL Chair Dimitar Beleliev Talks About Challenges, Trends in Bulgaria's Electrical Engineering Industry

According to preliminary data, the Bulgarian Association of Electrical Engineering and Electronics (BASEL) is reporting a decline in exports for the first time in years, BASEL Chair Dimitar Beleliev told BTA in an interview.

According to him, the electrical industry continues to have the largest contribution to Bulgaria's exports, accounting for slightly over 11% (some EUR 4 billion) of the country's total exports, based on data from Eurostat as of the end of October 2024. However, compared to the same period in 2023 (January - October), there is a slight decline of 3.2%, which, in his words, causes concern.

Beleliev further explained that, in general, a decline in the export of goods from Bulgaria is being observed, and the reason is the ongoing situation in Europe, which is on the brink of a crisis. Bulgaria primarily exports goods to European Union countries, with Germany having the largest share. "For the first time in 25 years, since we as an industry organization have been monitoring this indicator, we have preliminary data on a decline in exports, excluding the COVID year. This year [2025], when the final data is released, we may see a slight decline or at the very least, no growth," he added.

Beleliev noted that the crisis is now being felt, and companies are experiencing concerns due to a decrease in orders. "We are proving to be the weakest link for international companies due to the high cost of labour and the lack of people willing to work," he pointed out.

The expert highlighted a major issue for the industry: in a large portion of public procurement contracts—over 60% according to the association’s data—supplies are made by third countries such as Turkiye and China, meaning such foreign companies win the contracts.

"It turns out that we are well accepted in Europe, but not in Bulgaria. Moreover, we end up using European and budgetary funds to support foreign economies that are not market-based," he said, emphasizing that the law allows for the exclusion of countries with proven non-market economies from public procurement funded by European funds.

"We appeal to the Bulgarian government to introduce the practice of excluding from tenders those countries that have not signed the Central European Free Trade Agreement (CEFTA), as is the practice in Germany, Romania, and France, for example. This will stimulate Bulgarian production and competitiveness," the BASEL Chair underscored.

As another issue, he pointed to the lack of state policies supporting the development of the industry and the complicated procedures related to European programmes.

Additionally, the electrical industry suffers from a shortage of skilled workers, even though it is a sector crucial to Bulgaria’s economy—not only in terms of export potential but also as a contributor to technological progress. According to him, the industry is already hiring employees from Uzbekistan, Nepal, and the Philippines, but the procedures take several months and need to be expedited.

Currently, around 1,250 companies are engaged in the manufacturing and repair of electronic devices and electrical equipment, employing approximately 57,000 people. BASEL is a nationally representative organization for the Electrical Engineering and Electronics industry, with 115 Bulgarian and foreign companies as members. These include manufacturers of electrical and electronic products, service companies for the repair and installation of electrical systems, and component suppliers, with a total annual turnover of approximately EUR 1 billion.