The problem of generational change is that people avoid working in manufacturing companies

The clothing and textile industry in Lithuania has deep traditions and occupies an important place in the structure of the country’s economy. Our country has more than one historical textile company that proves the vitality of this industry by its example. One of them is Liteksas AB, which will soon celebrate the company’s centenary. The head of the company reveals that during this period, she wants to share more than just joys. Alarm signals affecting the industry are reaching all the country’s manufacturing companies.

Strength is stability

The company “Liteksas”, which creates high-quality, uniquely designed home textile products, was founded in 1927. The historical company, famous for its woolen products, has survived a war and several crises over the course of a century. Although the nature of the company’s activities has never changed, the range of manufactured products has been constantly expanding.

In June 2000, the company was bought by the most important group of Italian textile and clothing manufacturers – “Marzotto Group“. The Italian-Lithuanian integration had an impact on styling, production and quality assurance.

Using modern technologies and equipment, Liteksas AB produces from the best natural fibers: lamb’s wool, cashmere, merino and alpaca.

Company manager Rūta Matulaitytė says that the company’s greatest strength is stability. “During almost a century, the company changed a lot, but it continued to operate continuously. During the 24 years that we have been an Italian capital company, there have certainly been many crises, but we have always tried to save employees as much as possible. We did not lay off employees during any crisis.”

Currently, the company has about 100 employees. The company with Italian capital produces blankets, blankets, covers, cushions and their covers, scarves and other wool products in Lithuania, which are ordered according to customer needs and requirements.

The geopolitical situation is worrying

Speaking about today’s challenges in the textile industry, the head of the “Liteksas” company emphasized the exceptionally poor geopolitical situation in the world. Uncertainty in the market encourages lower consumption. For this reason, all manufacturing companies are experiencing difficulties.

“It is said that consumption has increased in Lithuania, but manufacturing companies do not notice it. On the contrary, orders have significantly decreased. Our customers, other companies for whose brands we produce various home textile products, are reluctant to invest and fill warehouses. Banks are finding it harder to finance companies and all of this is having an impact. What we are capturing are smaller, faster orders, buying only what is needed at the moment. The customers demand that the products be produced in a very short time”, reveals R. Matulaitytė.

The head of the company admits that people avoid buying essential goods in difficult times, and home textile products fall into this category.

Gytė Bėkštienė, general director of the Lithuanian Clothing and Textile Industry Association, admits that there has been no shortage of challenges in recent years. Both manufacturing and trading companies are experiencing difficulties.

“The biggest difficulties: decreased orders, increased interest rates on bank loans, geopolitical situation, influence of the war, increased energy costs. It is also worth mentioning the shortage of workers in the textile sector. For example, it is clear that the specialty of a tailor is losing its former popularity. In the end, the consumers themselves and their needs are also changing, turning to sustainability and lower consumption”, G. Bėkštienė names the challenges.

Vocational schools do not train specialists

One of the most pressing problems that plagues many companies in the textile industry is the lack of workers. This is also confirmed by the manager of Liteksas AB. According to the interlocutor, it is becoming more and more difficult to find motivated, responsible and reliable employees.

“Vocational schools do not train the employees we need. We have to teach them ourselves. However, the training of new employees is only a conditional problem. It is a much bigger challenge to attract people to the manufacturing sector, because it is shift work in noise and dust. Today, people do not want to work in a factory, priorities are given to other specialties. This is a generational change problem. We still have our long-term employees, but if they are not replaced by new ones in the long run, it means that our future will be difficult”, says R. Matulaitytė.

One of the ways to attract new employees and motivate existing ones is to improve working conditions, the head of the company is convinced. Even in an unfavorable economic situation, the company annually raises employees’ salaries, provides other privileges – additional benefits, health insurance.

The company uses a special recommendation program, which has probably been the most successful in the search for new employees.

“When an existing employee brings in a new person, and he works in the company for half a year, the person who brought him receives a certain payment. Then new people come in with realistic expectations, knowing a little about the specifics of the job itself. I must emphasize that in such cases, the attitude of the existing employees to the new person is different, they are more benevolent and patient. After all, it’s not easy to join an old team”, R. Matulaitytė shares her thoughts.

Summarizing the current situation in the textile sector, the interviewee is happy that Liteksas AB belongs to a large group of companies. It helps us survive when crises strike: “Sometimes we are the ones who are dragged by the group, sometimes we are the ones who help. We belong to a corporation that has been around for 200 years. It gives us stability, security and confidence.”