The construction industry exhibition THE BIG 5, one of the EXPO 2020 satellite events, took place from 12 to 15 September in Dubai, United Arab Emirates (UAE). This year, Latvia was represented by eight companies, offering a wide range of construction materials from basic structures to interior elements: “Controlit Factory”, “AM Energy”, “WWL HOUSES”, “Tetralia”, “Groglass”, “TENAX PANEL”, “Wood ART. LV “and” Silk Plaster Group “. When Latvian builders return, the number of contacts of potential cooperation partners obtained for various companies varies in the range from 20 to 50, while some have already concluded cooperation agreements.
THE BIG 5 is the largest and most influential exhibition in the construction industry in the Middle East, which has been taking place since 1982, bringing together around 3,000 participants and around 60,000 industry professionals each year. Dubai is the door not only to the solvent Gulf region, but also to India, Africa and Australia. In addition, this market is very open to innovation, which is also widely used in the construction industry. Latvian entrepreneurs, who have gained both extensive contacts and valuable insights in this exhibition, also point to innovations as the most important aspect, which is appreciated by potential cooperation partners from all over the world.
Small on the map, visible in international exhibitions
According to the data of the Central Statistical Bureau (CSB), in 2020 the share of the construction sector in Latvia (meaning not only building construction, but also engineering construction and specialized construction works) was 7% of the gross domestic product. There were 11,658 companies operating in the sector, employing around 70,000 people. The largest share – 39% – of the construction industry’s export market last year was formed by timber, 22% – metals, followed by a number of other materials in the range of 5-10%: furniture and lamps, construction materials, various parts and components. Foreign trade in construction services brought in 356 million euros in 2020, and in total this income has increased sixfold in 10 years. However, Latvia is small if you look at the global map, and entrepreneurs also admit that it is easier to position yourself as a European than a Latvian producer. So what can we surprise the rest of the world with, and why do Latvian construction companies still manage to be noticed?
“Of course, against the background of the rest of the world, Latvia is small, but it must be admitted that the exhibition looked very good. We know how to attract attention: the visitors of the exhibition liked the design of the stand, which differed significantly from the offer of other countries. While other countries used relatively simple constructions, both unusual materials and 3D holograms could be admired on the Latvian stand. The number of contacts of potential partners obtained for different companies varies from 20 to 50, and some have already concluded agreements. All entrepreneurs say that the exhibition has been interesting and valuable because it has helped to better understand the specific market, which products in the specific market are “more walkable” and what could potentially be offered in addition. On the other hand, those who have visited THE BIG 5 before point out that this year, despite the restrictions of Covid-19, the exhibition was particularly well attended, which is probably related to the approach of the EXPO. And another conclusion we came to is that it is very important for the visitors of the exhibition that the product is made in Europe and not in China, which gives us its advantages, ”shares Toms Sudrabs, Project Manager of the Export Promotion Division of the Latvian Investment and Development Agency (LIAA).
Go to the other side of the world to meet the neighbors
Eco Terrace is a manufacturer of WPC or wood polymer composite material, which has a wide range of terraces, fences and facade boards for harsh weather conditions. They are water and frost resistant and are not eaten by insects, so they can be used to create terraces, balcony decks, various garden or even ordinary furniture and other industries.
Modris Miķelsons, the company’s sales manager, says that participation in THE BIG 5 has been a good experience, although it has been different than expected. “So far, I have not participated in the exhibitions of the construction industry, but it must be admitted that in one sense this exhibition is not different from other industries – everywhere, including Dubai, highly values innovations, all new ones, solutions related to IT technologies. We were preparing that people would be more interested in taking different samples of materials, but life proves that this is a milestone. About 10% of the prepared materials were distributed, but the rest of the materials and the stand itself, which we had built from different materials, demonstrating the diversity of our profiles, colors and materials, were distributed among particularly interested potential partners, ”says Modris Miķelsons.
He admits that after the first day in Dubai, he is a little worried if his products have been delivered to the right place. “Both the weather and the responsiveness of the customers, as well as the finishing materials used by the locals – mostly glass, tiles, marble – when I saw it all, I was a little worried. However, on the second day of the exhibition, the interest in us grew rapidly – even so much that at the end of the stand the exhibition had to be cut in half and divided between two potential partners, with whom we are also continuing negotiations. However, it must be admitted that we are probably more interested in the Scandinavian market precisely because of the specifics of the product. We use recycled materials in our production, which is a field close to the Scandinavian heart, and the boards themselves are designed for harsh weather conditions, where the sun alternates with snow, rain and frost, ”admits Modris Miķelsons. “However, we managed to establish hopeful contacts with a company that produces components – supports, screws, feet for terraces. Currently, our production season is coming to an end, so in winter there will be enough time to visit our partners. We have high hopes for such cooperation in the future, ”says Modris Miķelsons and emphasizes that this is the biggest advantage of this exhibition: really everyone gathers there and can get acquainted with cooperation partners from other continents and the nearest neighboring countries.
Surprise – the scale of construction in the Middle East
LIAA project manager Toms Sudrabs points out that the potential for co-operation between Latvia and the Middle East region is definitely different, although slightly different from that with European countries, as both cultural and mental differences and significant climate differences must be taken into account. However, the need for quality goods and services produced in Europe is in view of the rapid pace of construction in the Middle East. Some companies have come to the realization that the product needs to be slightly modified or adapted in order to be more successful in the region.
Tetralia, a manufacturer of metal structures of various levels of complexity, is currently looking for opportunities to prove the effectiveness of its product in the “field” in the Middle East. “One of the directions of our work is the production of screw pile foundations for modular and wooden frame houses and solar panels,” says Jānis Šelegovskis, a representative of Tetralia. He points out that THE BIG 5 is a global exhibition where the countries of the Gulf region are only a small part of the niche.
“We did not expect so many contacts, but it must be concluded that many of them are, so to speak, empty. There are four with whom we are currently cooperating, who have worked with our competitors’ products so far. A completely unexpected cooperation was established for us with the Poles, we also found potential partners in Australia, who currently use a local product, which is relatively expensive. There were interested people from Africa, from Uganda and Nigeria. Our product is not unique in the world, but in Europe we manage to compete quite successfully because our prices are competitive. We are not as greedy as our competitors in Canada and the USA and we do not try to become millionaires within a year, ”says Jānis Šelegovskis.
He admits that one of the success factors is to be visible. In preparation for the exhibition, the feeling was like preparing for a trip to a futuristic, impressive event. That’s why Tetralia bought a 3D hologram device for its stand. In reality, it turned out that the exhibition does not differ much from what is seen elsewhere, but ours stand out well against the general background.
“In terms of innovation, Europe is well ahead, this is more of a trade show, but you can see the trends that interest people. European exhibitions are more interesting in terms of innovation, but in the Middle East – in terms of volume, there are significantly larger scales than in Europe. If the cages with foundations are sent in Europe, the customer will have two or three months, but in the Middle East, each object needs 10 containers, because everything they build is very large, ”sums up Jānis Šelegovskis.
Contacts must be made before exhibitions
SIA “Controlit Factory” is proud of the innovative technology for roof inspection developed in Latvia and internationally patented – a material that can be installed during roof construction or renovation to fix even the slightest damage to the roof covering. This was the company’s first experience at the exhibition in the eastern region, although the Middle East market is no stranger – the company began to learn about it immediately after the start of the Covid-19 pandemic.
“Our experience is not great yet, but we already have contacts in this market. We see that there is no lack of interest in our technology in the region, so we also saw this exhibition as a valuable platform to meet potential customers and partners and gain a good start in continuing the trade mission within the EXPO. This is also my main recommendation to others – do not wait for you to go to the exhibition and everyone will come to you. It should be used as a platform to introduce already addressed contacts to a specific product. However, we are pleasantly surprised by the contacts gained at the exhibition and plan the first projects and future trips to Dubai both within and outside the EXPO trade mission to meet potential customers and partners, ”says Eriks Stankevičs, Member of the Board of SIA Controlit Factory.
Like other colleagues, he emphasizes that innovation is highly valued in this market. I am also pleasantly surprised by the purposefulness of the exhibition – the contacts show that THE BIG 5 audience is not homeowners who spend time looking at interesting solutions, but industry professionals from different countries of the world, so Ēriks Stankevičs recommends establishing contacts before the exhibitions.
On October 1, the world exhibition EXPO 2020 opened in Dubai, United Arab Emirates (UAE), where until 19 March 2022, 192 countries will share the latest business and investment opportunities in three thematic quarters – Sustainability, Mobility and Opportunities. Latvia will implement 13 trade missions and a number of other events in its national pavilion, which will be located in the EXPO Opportunity Quarter.
Nadina Erdmane
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