We have been present in Estonia since 1992. We have a subsidiary in Rapla: As Katimex. We also have partners in Eastern Estonia. We have gained experience from Estonians and also from Russians in Estonia, and they have gained experience from us.
We are brother nations with Estonians and it shows. We have a lot in common. We lived in “slightly different worlds” for 50 years at times and of course this still affects both peoples. Since Estonia gained independence in 1991, we have been getting to know each other again. We are already starting to learn from each other and from each other. In a recession, will we perhaps find each other even better? Will the importance of cooperation increase? Do we need each other more?
In Eastern Estonia we have very good partners today. We have good relations with the people there. They are mainly Russians in Estonia. It has been more straightforward to work with them than with Russians in Russia.
In Estonia, wages and costs rose very sharply throughout the 2000s. At the same time, however, productivity did not grow at the same pace. The peak was the parliamentary elections in Estonia in autumn 2007. One of the topics of discussion was: how quickly Estonia would overtake Finland in terms of wages. People were talking about a few years. The Estonians had forgotten Kekkonen’s remark: you need patience to become prosperous. On the other hand, we have also forgotten that from time to time, actually quite often. Of course, it is true that Estonians can overtake us in standard of living. It rarely happens in just a few years. Not this time either.
In the summer of 2007 I was first asked in Estonia: What does this recession actually mean? There was already a bit of a feeling in the air that things might get worse for a while. I replied that income and expenses have to be adjusted and sales work has to be done even more. Back then we really had no idea what we would have to adapt to and how much more sales work would be needed.
At our subsidiary we have had to change our ways of working significantly. We have substantially reduced the number of white-collar employees. The way people operate at Katimex has become much more straightforward. Productivity has increased significantly. I believe that as operations become more efficient, that company has a future. I feel much more confident than I did in the autumn of 2006 when we started to streamline operations there. Back then our subsidiary was in bad shape. Now it’s breathing with clean lungs.
The Estonian national economy and Estonians had a long winning streak. The stop and adjustment to a declining economy has been steep and difficult – more difficult than for us. The market economy has shown its bad side. The social safety net is weaker than ours, but Estonians are survivors. The people of Katimex in Rapla are leading by example. That inspires me.
Estonians think we’re slow at making decisions. Swedes think we’re fast. I’ve always wondered how decision‑making works between Estonians and Swedes. At least Swedish banks granted loans to Estonians quickly, so the negotiations went well.
I firmly believe in Estonia and Estonians. And likewise in Finland and Finns. Estonia can also remain one of the operating environments for the clothing industry for a long time to come. It is important to build trust between Estonians and Finns. That is something I want to continue doing.
In a few weeks, we will take our thinking to a new level.
Jukka Krogerus
P.S. Thank you for the feedback. I’d be happy to receive more: jukka.krogerus@dimex.fi