Industry continues to shrink, especially the chemical industry

Dutch industry is still in decline. At 9.4%, the trading value in the last three months of last year was much lower than it was in the same period of the previous year. This is the third consecutive quarter in which the volume of industrial business has shrunk, according to figures from the Central Bureau of Statistics.

Due to the increase in the first quarter, the total decline in sales volume was ultimately 5.6 percent lower than in 2022. The chemical industry in particular is facing difficult times due to the sharp decline in selling prices.

“This energy-intensive industry is the most affected by high energy prices,” says Albert-Jean Swart, sector economist at ABN Amro Bank. “Because energy prices in Europe are now much higher than in other parts of the world, it is difficult for Dutch companies to compete on the global market.”

In all other sectors, such as electronic industry, machinery, wood, building materials, food and beverages and transportation, selling prices actually rose. However, entrepreneurs have now reported deteriorating profitability for eight consecutive quarters.

However, the number of companies that went bankrupt in the last three months of 2023 decreased compared to the previous year. 54 companies collapsed, compared to 61 companies in the same period in 2022. For the whole of 2023, the number of bankruptcies in the industry reached 270. This is the highest number in five years.