Dutch manufacturing sector sees exports picking up
The Dutch manufacturing sector is growing at a slightly slower pace, according to the Nevi Dutch Manufacturing PMI for October, which declined from 53.7 to 51.8. Output and new orders continued to increase. The volume of new export orders rose again, after a slight decline in September.
The recovery in exports is striking, because the American import tariffs have been putting pressure on European exports to the US. The survey of approximately 350 purchasing managers in the Dutch industry shows that the European demand for Dutch products is increasing, especially from France, Germany and Belgium. Looking ahead, the impact of announcements of production restrictions at large car manufacturers following the takeover of Nexperia will likely hamper the German automotive sector in the coming months.
Industrial policy important for basic industry
A dichotomy is becoming increasingly clear in Dutch industry. On the one hand, production in the high-tech industry is starting to pick up, for example thanks to an improvement in the demand for machinery. On the other hand, energy-intensive industry is under pressure. For example, the production of the chemical industry continued to decline during the summer, according to figures from Statistics Netherlands (CBS). And in October, the chemical industry suffered a new setback. Earlier this year, several factories in the Rotterdam region announced closures, now three chemical factories in Chemelot near Geleen are also closing their doors.
The election manifestos show that the various political parties are by no means on the same page on topics that are important for basic industry, such as the national carbon tax and the level of budgets for sustainability subsidies, such as SDE++, EIA, MIA and VAMIL. The competitive position of the Dutch basic industry is under pressure, partly due to high energy prices and grid tariffs, which are significantly higher in the Netherlands than in neighbouring countries.
Many parties in the House of Representatives are in favour of lower grid tariffs, as was shown during an election debate between nine candidate MPs organized by industry organization FME, research institute TNO and the trade unions. However, lowering network tariffs for industry, as advised by the European Commission, is easier said than done, because it is likely to increase the national debt.
The next cabinet can have a major influence on Dutch climate policy and the competitive position of the Dutch basic industry. The basic industry is therefore eagerly awaiting the formation of a new coalition.