Technology sector faces challenges despite strong sales from Tasowheel in Finland

Technology sector companies account for around half of Finland’s exports, but the outlook for these firms is currently discouraging. According to the sector’s trade association, Teknologiateollisuus ry, the value of new orders in April to June was 15% lower compared to the same period last year, with no improvement in sight. However, some companies, such as the Tampere-based machinery company Tasowheel, continue to report strong sales. Tasowheel specializes in manufacturing gears and axles for various vehicles, including construction machines and supercars. CEO Roman Mertechev notes that long-term sales efforts are finally yielding results.

In addition to Finland, Tasowheel sells products to Sweden, Germany, the UK, the US, and India, with Europe as its primary market experiencing sluggish economic growth. “We are swimming against the tide and are on a growth path,” Mertechev states.

Most technology sector firms in Finland are small to medium-sized enterprises, heavily reliant on larger companies for orders. However, the ongoing economic difficulties experienced by primary contractors have led to delays in significant purchases, particularly affecting the construction sector.

Despite this, Tasowheel has a diverse customer base, serving industries including pharmaceuticals and paper manufacturing. Mertechev mentions that while construction and earth-moving sectors are currently challenged, the special vehicles sector is thriving. Approximately half of Tasowheel’s sales come from direct exports, with strategic emphasis placed on expanding this aspect in recent years.

The economic landscape in Eurozone countries remains weak, especially in Germany, while the US market shows better resilience. The incorporation of Finland into NATO has reportedly improved the country’s reputation in the US, benefitting Finnish companies aiming to expand there. Simo Lahtinen, CEO of Capteeni Oy, emphasizes the need for Finnish businesses to confidently approach potential customers in the American market, suggesting that direct communication and understanding local sales tactics are key to success.