Impact of COVID 19 on Wood Processing Industry in BiH

Impact of COVID 19 on Wood Processing Industry in BiH

The wood sector of Bosnia and Herzegovina has been significantly affected by the negative consequences of the COVID-19 pandemic. During the pandemic period, the companies had a drop in exports of almost all products compared to last year, except for construction carpentry. The biggest drop in exports was in April, while a slight recovery was felt in May, due to the opening of the EU market. Also, imports decreased, as a result of reduced production and exports, but significantly less than exports. The companies mostly held onto employees managed to secure the salaries, and the production continued at a slightly slower pace. Although the companies had a drop in revenue, they were still obliged to pay taxes and contributions in the same amount as before. It is estimated that due to reduced demand in international markets, especially the EU, there is great uncertainty and fear that this year will be very difficult for the wood industry.

Number of companies over the past three years 

In 2017, 1,095 companies were registered BiH wood industry, while in 2018 that number increased by 88 companies. Although, in 2019 this number decreased to 1,065.

Types of companies

Of these companies, 57.8% of companies generate revenue of up to half a million BAM, 37.6% of companies up to 5 million BAM, and 4.6% more than 5 million BAM.

Number of employees and average salary

The number of employees in this sector increased in 2018 by 479 compared to the previous one. Even the next year the number of employees continues to increase up to 15,625 employees

The average monthly gross salary of workers in these companies amounted to BAM 974, or EUR 498. This means that workers in the wood industry are paid an average of BAM 6  per hour, or EUR 3 per hour.

Staff costsAmount in BAMAmount in EUR
Total salaries cost182,580,06893,351,706
Number of employees15,625
Yearly salary per employee11,6855,975
Monthly salary per employee974498
Daily salary per employee4624
Hourly fee per employee63

On the other hand, the monthly revenue per employee amounted to BAM 6,846 or EUR 3,500 The average hourly income per worker is BAM 41 or EUR 21.

Type of revenueAmount in BAMAmount in EUR
Revenue per employee in a year82,15042,003
Monthly revenue per employee6,8463,500
Daily revenue per employee326167
Hourly revenue per employee4121

Sales and export revenue

Total sales revenue experienced exponential growth over the past three years. The sales revenue increased in 2018 by BAM 87,503,678. In 2019, sales revenue amounted to BAM 1,283,588,128, which is a decrease of BAM 6,433,776 or 0.5% compared to the previous year. Export revenue in 2018 increased by 3.65%, and in 2019 dropped again by 5.1%.

Top 20 companies by revenue

Top 10 companies share in industry by revenue

Total profit

Wood industry companies in 2019 together achieved a total profit of BAM 72,800,219, which is an increase of 62.3% compared to BAM 44,853,629 two years earlier, in 2017.

Top 20 companies by total profit in industry

The top 20 companies share in industry by profit