Should value creation be the Baltic business mantra?
EY25 contribution to the centenaries of the restoration of the Baltic States' independence in 2018
EY, celebrating its 25th anniversary in the Baltic States, contributes a unique study of value added in the Baltic economies. We take the welfare of Estonia, Latvia and Lithuania seriously. Therefore, we have endeavored to explore what long-term issues need to be addressed in order to achieve it.
Value added (VA) creation is the additional value that is generated by the business with the acquired materials and services. Our tailored methodology calculates a VA index that incorporates VA creation, its sharing with company employees and also takes into consideration the structural differences among industries.
The EY study covers the Estonia, Latvia and Lithuania, and is combined with the M&A agenda. The EY experts analysed close to 2000 companies in the Baltics aiming to determine differences and similarities between the Baltic companies in nine industries (finance, services, technologies, energy, manufacturing, construction and RE, trade, agribusiness and transport) and their peers in the EU28.
To create more VA in the future, companies will need to focus on growth ambition, investments into modern technology, people competencies, R&D, become more client-centric, use analytics, and review business models in order to respond to the current trend of digital disruption.