Reporter: What is the situation of the workforce in Valea Jiului? Are we talking about an aging workforce or are there also young people looking for work?
Sorin Mihanţa: The workforce situation in Valea Jiului presents significant challenges. We are seeing increased difficulty in identifying the right staff, and employment opportunities are relatively rare. When such opportunities arise, applications are predominantly from women between the ages of 20 and 50 and young men. Although the latter do not have solid work experience, they often have difficulties in developing their motivation and ability to learn. This dynamic complicates the recruitment process and highlights the need for greater interest and commitment to support local workforce development. It is essential to cultivate an environment that encourages the growth and engagement of these potential employees.
Reporter: How can the workforce in the area be professionally retrained? What percentage of ex-miners are willing to take vocational training or change jobs?
Sorin Mihanţa: In our company, we focus on the qualification of employees directly at the workplace, giving them the opportunity to learn and adapt to new professional requirements. Virtually everyone who has joined our team has gone through this internal training process. Regarding the professional retraining of ex-miners, we note that most of them leave the mining industry through retirement at around the age of 45. As their pensions are generally more advantageous compared to average incomes in Romania, they do not show a high interest in re-employment or in vocational training for a career change.
Reporter: How does the Just Transition Fund contribute to professional retraining?
Sorin Mihanţa: The Fund for the Just Transition financed by the European Union plays an important role in professional reconversion, but it comes with certain conditions. One of these is the obligation to employ one person for every 175,000 euros received as non-refundable funding. This requirement requires employers not only to recruit new staff, but also to find solutions for their qualification and employee retention for five years, during the monitoring period, after the implementation of the project. Although financial support is valuable, employers see this obligation as a significant “cost” to cover in order to benefit from the funds.
Reporter: From the point of view of to the entrepreneur, are the amounts allocated through the Just Transition Fund sufficient or is financial support from the Romanian state dedicated to SMEs in Valea Jiului necessary?
Sorin Mihanţa: From the entrepreneur’s perspective, the funds allocated through the Just Transition Fund are sufficient. However, a major challenge is managing the financial effort related to maintaining existing staff and hiring new staff on projects. Additional support in the form of dedicated programs for the insertion and qualification of new employees would be extremely beneficial. It would ease the financial challenge of employers and would significantly contribute to the success of the professional retraining and SME development initiatives in the Jiului Valley.
• Entrepreneurs demand a special law for former mining areas
Reporter: We know that on the agricultural side, there is a mountain law that provides facilities for farmers, agriculturists and producers of agri-food products and traditional textiles in the mountain area. Would such a law be necessary for former mining areas as well? What should it include?
Sorin Mihanţa: A law similar to the Mountain Law, which would provide fiscal facilities and financial support for former mining areas, would certainly be beneficial. These communities face major economic challenges after the closure of the mines, and such a legislative initiative could support the development of new industries and economic revitalization. However, for such a law to be effective, extensive analysis and public debate would be necessary to identify the specific needs of these regions and to find a formula that does not distort market competition. This law could include, among other things, tax incentives for local entrepreneurship, subsidies for vocational retraining and support for the development of the infrastructure necessary for new economic activities. At the same time, it could facilitate access to non-reimbursable financing for projects that create jobs and contribute to the diversification of the local economy. Such an approach could support the transition from a mining-based economy to a sustainable one adapted to today’s requirements.
Reporter: How is your business going? What was the turnover recorded in 2023 compared to 2022? What are your predictions for the end of this year?
Sorin Mihanţa: The year 2024 proved to be a challenging one, especially in the context of the European financial crisis, which significantly affected demand. We are experiencing a decline in demand, a trend that has been playing out for several years and unfortunately does not seem to be ending in the near future. However, in 2023, we saw a 30% increase in turnover compared to 2022, which was an encouraging result. However, estimates for 2024 indicate a return to the level of 2022, which means a decrease of approximately 30% compared to 2023. To adapt to these challenges, we had to identify strategic solutions to maintain the stability of the business. In this sense, we have started steps to expand into new markets, such as Romania and Israel, and we have diversified our product range, in order to access these emerging markets. These steps give us hope that we will be able to mitigate the impact of the drop in demand and better position ourselves for the future.
• Successful partnership with UK companies
Reporter: I noticed that you have focused your business on export, especially to the UK. What are the conditions for your business with your British partners? Is it difficult to enter the British market or easier compared to Romania? Did you experience any difficulty entering that market? What are the main products that British customers want?
Sorin Mihanţa: The British market is a special one and stands out for its specific requirements and unique products compared to other European countries, especially in the sector in which we operate, namely the manufacture and export of wooden windows and doors for the exterior. Especially in London and the surrounding areas, these products have a distinctive design: sash windows and outward-opening windows, elements that make them unique in Europe. This specific design involves considerable technical challenges in terms of the manufacturing process, as it is difficult to acquire the necessary knowledge to produce these types of windows according to local requirements. As well as the technical difficulties, the strict rules governing the construction and replacement of old windows in the UK add another layer of complexity. There are well-established and extremely rigorous rules governing the construction market, and the process of authorizing and monitoring the works requires close collaboration with local commercial partners. They must thoroughly understand these regulations and be qualified toto function in such a specific environment. Thus, accessing the UK market is much more difficult compared to other markets in Europe or Romania. However, the experience gained in over 10 years of activity in this market has allowed us to adapt and develop successful partnerships. This experience has also been extremely useful in our recent collaboration with our partner in Israel, who operate in an environment with similar requirements to the UK.
Reporter: I understand that you want to expand your business in the Romanian market as well. How would you characterize the market in our country in the field in which you operate? Do you have products dedicated to customers in our country or are you thinking about something like this? Will the expansion of the activity also require an increase in the number of employees?
Sorin Mihanţa: One of our objectives within the Just Transition program is to expand the range of products on the Romanian market as well. We aim to provide customers in the country with a variety of products, such as laminated wood windows with double glazing, exterior aluminum clad windows, laminated wood entry doors and other wood-based composite materials, as well as interior wooden doors solid or composite. In general, customers who opt for wooden windows and doors are high-income earners who emphasize natural materials, high thermal efficiency and a premium finish, accompanied by the highest quality service. In order to meet the demands of the Romanian market and to maintain the high standards of the products, the expansion of the activity will certainly require an increase in the number of employees. We plan to open up more production streams, which will likely involve working in double shifts, to ensure we can cover both domestic and overseas demand.
• “The support that the state offers to the domestic business environment, especially SMEs, is not enough or well-directed”
Reporter: How does a Romanian entrepreneur from Valea Jiului manage, in the current fiscal conditions in our country? What was the impact of the generalization of Ro e-Invoice and Ro e-Transport systems? What tax changes would you like to make your business run in good conditions, both for the company you own and for the state budget and local budget?
Sorin Mihanţa: We are generally doing well in the current fiscal conditions, as long as we manage to sustain the turnover needed to cover payments to suppliers, employees, banks and the state. The implementation of the Ro e-Invoice and Ro e-Transport systems did not raise major difficulties for us, considering the experience we have in managing the business. We also have qualified financial staff, and the fact that we do not have a very large number of suppliers and customers has helped us to manage these new requirements more easily. Regarding tax changes, I think it would be preferable if they were as infrequent as possible and provide predictability. If changes are required, it is important that they are implemented with reasonable timescales to allow companies to adapt. At the same time, a wider digitization of state institutions would be desirable, in order to simplify and facilitate interaction with them. The current level of taxation is quite burdensome, especially in the manufacturing industry, where we face major challenges in finding customers and markets, managing staff, qualifying and retaining them, but also in ensuring decent wages. The investments required for development, technology and workforce qualification are considerable. Overall, I believe that the support that the state offers to the local business environment, especially SMEs, is not enough or well-directed enough. A clearer and more focused approach to supporting these enterprises would be essential to stimulate economic growth and development at the local level. It is vital that we create a framework that facilitates access to resources and opportunities so that SMEs can effectively contribute to the prosperity of our community.
Reporter: Thank you.
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Publish date : 2024-10-24 14:03:00
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