JK Timber is a young company based in the Latgale region of Latvia, specialising in the design, manufacture, delivery and installation of roof trusses – a highly specialised construction product. Now in its third year of operation, the company is currently the only manufacturer of its kind in Latgale. In a relatively short period, it has already served more than 120 customers and continues to experience a growing order pipeline, while gradually expanding into additional manufacturing activities. A significant contribution to the company's growth has come from the business incubation programme of the Rezekne branch of the Investment and Development Agency of Latvia (LIAA), which has provided support through training, assistance in securing financing, production development and day-to-day business consultations.
The company's founder and sole owner, Kārlis Vanags, explains that JK Timber was born out of a practical need. Several years ago, while building his own family home, he discovered that roof trusses were extremely difficult to obtain on the local market.
"When I was building my own house, I also needed roof trusses. After contacting local manufacturers, I was told that the waiting time could be as long as six months. After discussing the situation with a friend, we realised that if demand was so high and supply so limited, why not start manufacturing them ourselves?" he recalls.
Today, JK Timber has established a strong position in this niche market and continues to gain recognition among customers and contractors alike. The company operates a production facility of approximately 1,000 square metres in Balvi. Although its team remains relatively small, it is capable of ensuring efficient and timely order fulfilment while maintaining a personalised approach to every client.
The company serves both private individuals and corporate customers, although the majority of demand comes from the residential housing sector. According to the company's owner, working with private clients often requires more intensive communication and emotional involvement, but this personalised service has become one of the company's greatest competitive advantages in attracting new customers.
"Building a home is a deeply personal and important milestone for people. It is often their dream home, which means decisions are made carefully, every detail is thoroughly considered, and project changes are quite common. Sometimes it takes months of communication before an order is confirmed. However, we see this as one of our greatest strengths – our ability to understand each client's needs and find the most suitable solution. Perhaps that is why recommendations are our strongest marketing tool. One family builds their house with us, and soon afterwards their neighbours want the same. We can proudly say that we rarely have to look for customers – they find us. They call because a neighbour or acquaintance recommended us. The majority of our new orders come through word-of-mouth," he explains.
Roof trusses are a modern construction solution that is increasingly replacing traditional solid timber beams. Although timber beams have been used in roof structures for centuries, their strength and performance largely depend on the quality of the wood, which is not always consistent throughout the material. Roof trusses, by contrast, are industrially manufactured from carefully selected timber, precisely engineered and produced in accordance with established standards. They are relatively lightweight while offering exceptional structural strength, thanks to engineering calculations that ensure optimal load distribution.
JK Timber works together with professional structural designers when developing roof trusses and uses advanced engineering software to calculate the required load-bearing capacity, taking into account a range of factors, including the building's location and local climatic conditions. For example, in regions where heavier snowfall is common during winter, trusses are designed with higher load-bearing capacity to ensure both safety and long-term durability.
The company's financial performance also demonstrates the product's market potential. During its very first year of operation, JK Timber achieved a turnover of approximately EUR 100,000. Although revenue declined by around 30% last year, the company expects significant growth this year and forecasts turnover well above EUR 100,000. While the company already serves export customers, its primary focus remains the Latvian market.
"This is largely due to the nature of our product. Fully assembled roof trusses occupy a considerable amount of space during transportation. Today, international freight is generally shipped with trucks filled to maximum capacity, whereas in our case a significant portion of the cargo consists of empty space, making transportation considerably more expensive. Nevertheless, we already have our first customers in the Baltic States, and expanding in this direction is certainly part of our future plans," says Kārlis Vanags.
The Investment and Development Agency of Latvia (LIAA) has played an important role not only during the company's start-up phase but also throughout its continued development. JK Timber currently participates in the business incubation programme operated by LIAA's Rezekne branch, receiving training, business consultations and practical financial support, including co-financing for raw materials, production equipment and other development needs.
Looking ahead, JK Timber is actively seeking solutions to reduce the impact of seasonality on its business. Construction activity is typically strongest during spring, summer and autumn, while demand declines significantly during the winter months. To maintain a more balanced workload throughout the year and utilise its production capacity more efficiently, the company encourages customers to place orders earlier by offering more favourable off-season manufacturing conditions together with free storage of completed roof trusses until the start of the construction season. At the same time, JK Timber is expanding into new product lines, including wall frame systems and simpler timber structures, thereby broadening its product portfolio and reducing its dependence on seasonal fluctuations.
This article has been prepared within the framework of the project "Innovative Entrepreneurship Development for SMEs", co-financed by the European Regional Development Fund and the European Union.
