Summary of 2013 and the economic outlooks for 2014

Patrycja Bierska, Director of the Novotel Szczecin Centrum Hotel

The hotel industry reported considerably good performance last year, thanks to the economic rebound in the region, Szczecin in particular. Last year the authorities of Szczecin were very active, organizing numerous cultural, sport and business events (such as the First Maritime Congress). Promoting the region and the city is also fairly important. People do not visit Szczecin with the intention to stay in a given hotel, but because they need to be in the city.

The industry seems very optimistic about 2014. The local authorities will keep promoting the city, which will positively affect the hotel industry. No new hotel construction is planned in the city, which implies that a significant growth should not be expected. In 2014 we will follow the strategy implemented in the previous years, as it has proved profitable.
Novotel intends to add 40 new rooms to its offer. We have also started redecoration works, renovating the Wellness in Balance by Novotel and the conference centre. My wish for 2014 is that the city keep developing. All initiatives aimed at promoting the city are highly appreciated by the hotel industry. We all expect more sport events attracting a great number of tourists. Most our guests come from Germany and Scandinavia. Our city, however, is worth promoting Europe-wide.

Paweł Fornalski, Chairman of the Management Board, IAI S.A.

The Internet industry, which has dominated the IT market, has been growing fast. Comparing to other IT-related industries, the Internet market increased by several percent versus last year, with e-commerce reporting ca. 40 percent growth. Last year some IAI S.A.'s clients growth reached 100 percent, boosting market growth. Our company saw a 70 percent increase in sales comparing to 2012.

Professionalization and internationalization were the trends which continued in 2013. Poland has become an equal partner in the global market. A growing number of Polish services have been sold in the international market. More companies have gained sufficient competencies to offer their services in several markets at the same time. Moreover, subcontracting has lost its importance. Companies tend to develop software internally to offer it to a wider group of buyers, which indicates market maturity. It is not the client who dictates the specification of services to be provided by the IT firm. It is the IT firm which develops a product meeting client’s needs having analysed the market.

What can we expect in 2014? Most of all, an increased focus on internationalization. Companies, especially those from Western Pomerania, are becoming more interested in entering the German market. IAI S.A. intends to open its branch in Berlin.

IT firms will look for clients abroad, as the domestic market may slump. Alarming signals have also been coming from the authorities which intend to change taxation rates for IT entities. The market has been booming for some time and the state let the industry grow freely. Now, when amendments to the law applicable to our industry are being discussed, companies will consider moving abroad to ensure security and stability. If a company intends to grow instead of striving to shrink more slowly, it will have to consider foreign markets. Another reason for the Polish IT industry to move abroad is compensation. Polish salaries have been growing, still the market prices remain very attractive comparing to the European market.

My wish for 2014 is that the authorities start competing for Polish companies with other countries rather than discourage entrepreneurs by way of enacting complicated laws and administrative procedures.

Laura Hołowacz, Director, CSL Internationale Spedition

In my opinion, 2013 was a good year for the logistic industry, as we observed a 10 to 30 percent revenue growth p.a. CSL reported a 12 percent increase in revenue.

Outlooks for 2014 are also optimistic and the market is expected to boom in the next two years.

Konrad Kijak, Sales Manager, Zachodniopomorska Grupa Motoryzacyjna KIA POLMOTOR

29,859 new passenger cars and light commercial vehicles with the weight of not more than 3.5 tonnes were sold in Poland in January 2013. It is a surprisingly impressive number, by 2.7 thousand higher (12 percent) than in January 2012. Still, this volume includes VAT-free export of vehicles. A large group of Poles working abroad still prefer to buy cars in their motherland, hence the satisfying number of registrations. Still, the industry should focus on those living locally if it wants to improve the figures. And this applies not only to dealers, but to the Ministry of Finance as well.

The sale of new cars has been plummeting in the recent years. The slump results from the absence of incentives for customers, who focus not only on prices but also on VAT deductions. The lack of the cargo partition qualifying cars as trucks or business cars clearly translates into sales figures, as it used to boost demand among individuals and businesses searching for advantageous offers. We believe that cargo partitions introduced as temporary tax incentives in 2014 will attract consumers and generate a sales growth versus 2013.

Tomasz Wasikowski, Manager of Szczecin Contact Center, arvato Polska

Dynamic growth of our Szczecin branch established nearly ten years ago was one of the elements which made 2013 a profitable year for arvato Polska. First of all, we managed to acquire new business projects and to grow our headcount. Therefore, we have initiated the process of changing location in order to satisfy more stringent security requirements of our clients and to create a better workplace for our team.

From the perspective of the BPO/SSC sector in Szczecin, last year was the time of strengthening relationships among sector companies and initiating a dialog with the city, regional authorities and local universities.
It was also a difficult year considering the talent gap in the local labour market, in particular the problem with recruiting staff with foreign language competencies.

This year will give us the foretaste of what is to come in terms of business growth and workforce available.
It will also bring further consolidation of the sector and tightened collaboration with Szczecin authorities and universities to promote the region, the city and employers with the intention to attract potential job candidates to Szczecin. Foreign language speaking talents are of key importance for development of BPO/SSC businesses. If human resources are not available, in the long run the entities may even be relocated to other Polish cities or abroad, causing further outflow of talents from Szczecin. As BPO/SSC entities are established organizations (with 3500 employees) offering attractive remuneration and work conditions, the trend would adversely affect the local market and impede economic growth of the city.

Zbigniew Wielgosz, Chairman of the Management Board, GBS Bank

2013 was a period when cooperative banks, including GBS Bank, had to compete vigorously with largest players in the banking sector. Despite last year’s turbulence in the financial markets, cooperative banks have done considerably well, which has translated into good performance. For the last 150 years cooperative banks have followed the social economy policy; and social activities are more resistant to crisis and promote sustainable development in local and global scale.
In 2013 we focused on Polish equity, the related security and financial stability and a wide branch network. Cooperative banking in Poland is comprised of 573 banks and 4,500 outlets, which are growing steadily and gradually, including outlets of GBS Bank with two branches in Szczecin - at ul. Partyzantów and Al. Boh. Warszawy.

In 2014 we intend to cultivate strong relationships with our customers which we value more than benefits from one-off transactions, constantly following the corporate social responsibility principles. We focus on an individual approach to a customer who will further recommend our bank.

Last October the government decided to extend the de minimis guarantees for investment loans from the beginning of 2014, which we find a particularly important driver of economic growth. Like in the previous year, GBS Bank offers advantageous facilities for micro, small and medium-sized enterprises, covered with a guarantee of Bank Gospodarstwa Krajowego (60 percent of the facility to be used for financing business operations).

The outlooks for 2014 are considerably good, based on the expected rebound, which we all hope for in 2014.

Note MM, mab