Automation has long been identified as the key to sustaining Serbia’s industrial competitiveness. Yet across many manufacturing segments, automation and digitalisation investments are increasingly being delayed. The reason is not technological hesitation, but financing uncertainty amplified by rising costs and risk perception.
Higher interest rates have materially altered investment economics. Automation projects, while productivity-enhancing, require upfront capital with payback periods that stretch over several years. As borrowing costs rise, internal return thresholds increase, pushing marginal projects below viability.
Energy uncertainty compounds this effect. Automation improves efficiency, but it does not eliminate exposure to volatile electricity pricing. For energy-intensive manufacturers, the expected savings from automation are harder to quantify when energy costs fluctuate unpredictably.
Banks, meanwhile, have become more cautious. Industrial projects are scrutinised more closely, collateral requirements have tightened, and loan maturities have shortened. This environment favours defensive investments over transformative ones.
The result is a paradox. Manufacturers recognise that automation is essential to offset labour shortages and maintain quality standards, yet the very conditions that make automation necessary also make it harder to finance.
Some firms respond by adopting incremental upgrades rather than comprehensive system overhauls. Others postpone automation entirely, accepting lower productivity in exchange for liquidity preservation. Over time, this risks widening the competitiveness gap between Serbian producers and better-capitalised EU peers.
From a macro perspective, delayed automation carries long-term costs. Productivity growth slows, wage pressures intensify, and export competitiveness erodes. What appears as prudent caution today may translate into structural disadvantage tomorrow.
Addressing this challenge requires more than cheap credit. Stable energy policy, predictable regulation, and targeted financing instruments could lower perceived risk and unlock investment. Without such measures, automation will remain an acknowledged priority that remains frustratingly out of reach for many producers.
