A. Valiuškis’ company: the end of this year may be even more difficult than the previous pandemic year
Algirdas Valiuškis, the head of A. Valiuškis’ company, states that the company’s orders decreased significantly during COVID-19, therefore it was possible to survive only with the help of state subsidies.
The company, which is engaged in the production of zippers and cords, wholesale of sewing accessories and haberdashery product accessories, has been working in the sector for more than a decade, but the pandemic and raw material supply disruptions, according to the manager, really disrupted operations.
“During the pandemic, we continued to improve and build new zippers. In recent years, we have faced disruptions in the supply of raw materials, both due to the pandemic and due to the changed situation in China and other reasons. Exports fell by 15-20 percent. Last year and this year were really similar financially. The year of 2020 was tough enough, but the end of this year, I think, will definitely be even tougher. The scarcity of raw materials and the insane rise in logistics costs are becoming an increasingly acute problem. This may stop the growth of the entire European economy” – predicts A. Valiuškis.
According to the head of the company, the Lithuanian clothing and textile market itself has shrunk, as smaller companies have not been able to survive the pandemic. Meanwhile, foreign customers are increasingly choosing countries where labor and manufactured products are much cheaper than in Lithuania.
During the pandemic, 80 percent of employees contracted COVID-19.