Newsletter #48 | 2016-11
- Export potential in the Baltic States: attractive neighboring states west of Russia
- Low-risk production in Romania: scalable outsourcing platform for Swiss SMEs
- Sensitive topic ‘outsourcing in low-wage countries’: structural change as an opportunity
- Industrial use of the underground: new center of excellence with Fargate involvement
- Different countries, different ideas of morality: why Fargate agents must be absolutely reliable
- New Fargate website goes live: compatible with smartphones, simple, clear, and informative
Export potential in the Baltic States
Attractive neighboring states west of Russia
The three Baltic States of Estonia, Latvia, and Lithuania have been members of the European Union (EU) since 2004. During this time, they have developed open and flexible national economies. Russia’s economic crisis, as well as its counter-sanctions against the EU and NATO, have done little harm to the neighboring Baltic States. This sales market, with over six million inhabitants, has very high economic growth compared to the EU. In the following article, our Baltic agent will show which market segments have the largest business potential for Swiss exporters.
Low-risk production in Romania
Scalable outsourcing platform for Swiss SMEs
Fargate has been supporting industrial SMEs in procurement and production in Eastern Europe for more than ten years. Among other things, we are working together with an outsourcing partner in Romania, which enables low-risk and scalable relocation of production processes for Swiss companies. It is possible to begin without major investments; as a first step, the necessary hall space can be rented, and qualified, German-speaking specialists can be hired. At a later stage, the Swiss SME will be able to transfer the operating assets that have already been developed into its own branch, and further expand on its own.
Sensitive topic: Outsourcing in low-wage countries
Using industrial structure change as an opportunity
Although more and more Swiss SMEs are outsourcing parts of their production to Eastern Europe or Asia, many are still very cautious. They fear political ostracism, since shifting production to low-wage countries undermines the Swiss labor market. However, the internationalization of work processes also opens up opportunities to create even more jobs in Switzerland in the long term.
Industrial use of the underground
New center of excellence with Fargate involvement
As urbanization increases, there is an increased need for space above ground, as well as for underground industry solutions such as automatic freight and passenger transport systems, high-security data centers, low-vibration precision factories, low-radiation laboratories, or plant nurseries that are stable in any climate.The Swiss have been leaders in underground mining since long before the latest record-length tunnel in Gotthard. The Swiss Center of Applied Underground Technologies (SCAUT), which was initiated in May 2016, creates a network of skills and suppliers in this market segment in order to deploy them in innovative projects worldwide. Fargate led the first phase of the construction and will promote the internationalization of the new center.
Different countries, different ideas of morality
Why Fargate agents must be absolutely reliable
The principle of “trust is good, control is better” cannot be applied to business partners in distant countries as easily as to employees in your own, more easily manageable company. Real control over long distances is often almost impossible. A solid basis of trust is a prerequisite for successful international partnerships. Preceding commitment to new foreign agents, Fargate will ensure that they fully share typical Swiss values.
New Fargate website goes live
Compatible with smartphones, simple, clear and informative
In October 2016, Fargate launched a completely new website. It is based on the latest programming techniques, and is also compatible with smartphones. The user interface is deliberately traditional. Users of the Fargate website should not be challenged by hectic screens, original navigation techniques, and unusual effects.