Household appliance sector - an engine of Polish economy?

Author: Agnieszka Kozakiewicz, Member of the Management Board of Millennium Leasing

Value of the domestic household appliance sector is estimated at approximately 8 bn PLN. Washing machines (30 %) and dishwashers (21%) have the largest share in production. The majority of them are exported, mostly to Germany, France and Great Britain. The entire sector has more than 2% share in the Polish exports. 2017 forecasts are also positive, in particular, due to big investments expected in the industry. The most famous one is the re-location of a production plant from France to Łódz announced by Whirlpool. These will be investment projects related not only to assembly itself but also research and development. Competence, research and development centres as well as logistics centres will be set up and they will work for the Polish industry. It is a chance for development for small and medium-sized companies which are suppliers for large manufacturers.

One of the problems observed in the sector is the increase in raw material prices and additional costs related to the need to dispose of used appliances as well as growing difficulties to find qualified employees. Investments in state-of-the-art machines and equipment, to be financed with lease products, are to be a remedy for these problems. Already now, lease companies finance entire production lines and increasingly more often long-term and complex investment projects, also in cooperation with foreign counterparties.

Also such programmes as Leasing Eko Energia from Millennium Leasing are addressed to these companies. Thanks to this programme, representatives of micro, small and medium-sized companies investing in power-saving machines and equipment may get a bonus from 3 to 5%, depending on the financing period. The programme is also supported by the Surety Funds available almost all over the country. Among other things, thanks to these funds, the requirement of the entrepreneur’s downpayment to the investment can be eliminated. Our observations and talks with the entrepreneurs have confirmed that the investment projects financed by the programme not only allow to reduce the costs of energy but also very often help to substitute the employees who are difficult to recruit with machines that require fewer personnel.