That how much the state is cutting down on its budget is widely known, but how many enterprises have been forced to correct their budgets and limit their wallets? Has the cooling economy really been as tragic as the media presents it to be, wonders postimees.ee.

The chairman of AS E-Betoonelement, Vaido Leosk, said that the complicated time naturally demands’ going over expenses, but that isn’t anything out of the ordinary. “E-Betoonelement tries to make rational decisions. Last year we predicted a fall and made a smaller budget than in 2007,” he said. “True, the fall has been deeper than we expected so we have had to cut down on expenses even more.”

That is why the company hasn’t had to take drastic steps just yet and no one has been laid off. Further decisions depend on the situation and further developments.

E-Betoonelement has mainly focused on increasing profit and is attempting to find orders from neighbouring markets. These aren’t easy times for building material manufacturers, though for those hoping to build cheaply, now is the last time to do so.

The swift rise of the price of steel will soon influence other areas of building as well, because iron is used nearly everywhere. According to Leosk, this knowledge might also start moving along those projects that are waiting for better days.

Member of the board of the enterprise Observer Eesti OÜ Ahti Kaskpeit said that this year’s budget hasn’t been cut down. “We try to control the expenses, but anything radical hasn’t been done. We moved to a new office, but that was prompted by the restructuring of the enterprise rather than its economic situation.”

According to Kaskpeit the enterprise isn’t planning to cancel its summer days, as taking the employees out of the office and into nature helps to refresh everyone. “In a longer perspective it brings profit instead of expenses,” he reasoned. “Due to the slowing of economic growth we have to keep an eye on our expenses, but on the other hand we are expecting a rise in overturn during the coming 12 months. That is why we try to be successful despite the calming economy.”

The chairman of the board of AS SEB Bank, Ahti Asmann, said that during hard times, when expenses have to be limited, joint events are especially important to keep the team spirit high. “Saving is a good idea during both good and bad times, that is why the control of expenses in SEB has been a constant process,” he assured. “This year we have paid special attention to saving, but joint events are still being planned.”

According to Asmann something good has came out of it as well, as the cooled off real estate market offers good opportunities to relocate bank offices to more frequented and more attractive locations. “In this complicated economic situation the clients and employees require more attention and that is what we aim to offer,” he noted.

State departments and enterprises are currently in a tighter spot, as from one side the obligation to save is being reinforced by the cutting down on state budget, on the other hand they have legal obligations that have to be fulfilled no matter what.

“That is why we save from for example summer days, we turn a critical eye on daily operation expenses and, if possible, prolong buying some bigger pieces of equipment,” said the First Deputy Director General of Estonian Land Board (ELB), Raivo Vallner. “At the same time it’s not possible to fulfil our legal obligations if we don’t have competent and motivated employees or if we don’t have the equipment we need to operate.”

According to Vallner saving is complicated because ELB never has too many spare funds, meaning that they don’t have a lot of employees they could lay off, no high wages to “freeze”, or a huge store of equipment they could start using.

“On the other hand such constant limitation of expenses has allowed our employees to get used to modest wishes and there isn’t loud complaining over cutting down on expenses,” he added. “Generally people understand that in the current economic state everyone has to save and it is hoped we can still reach our goals despite of saving.”

This year ELB won’t organise summer days in order to save. Cancelling such an event means giving up on an old tradition, which still somewhat, but hopefully only temporarily, influences the cooperation and mood inside the department.

The marketing director of AS Silikaat, Kaido Kallikorm, says that the direct outlet of every business enterprise is operating and succeeding on the market. “In that sense the situation on the market influences the enterprise at all times and as the economy is a cycled process the length of different cycles must be evaluated for the progress of the enterprise.”