ING: Higher productivity required due to staff shortage, robotization seen as solution

In recent years, the technology sector has become the growth engine of the entire Dutch industry. However, technological innovations are needed to increase productivity in order to exploit the tech industry's growth opportunities and thus the entire sector. This is because the sector's personnel shortage is threatening to worsen, warns ING Research in an industry report.

Unlike many other countries, the Netherlands plans to tighten the requirements for work, study, and knowledge migrants after cutting the expat program. As a result, the future growth of the technology sector will depend even more on higher productivity. Therefore, says Gert Jan Braam, Industry Sector Banker at ING, it is essential for manufacturing companies to focus even more on product and production process innovation.

According to ING, automation in the form of robotization and digitalization is a crucial way to increase productivity. In addition to labor shortages, network congestion is also a growing problem. The space required for company buildings and housing for employees is also often in short supply. In addition, the very high network tariffs and increasing regulatory pressure are often perceived as bottlenecks.

Within the machine industry, the sector of chip machine manufacturers such as ASML and ASMI has been the fastest growing sub-sector for years. Earlier this month, Dutch chip companies called on the Dutch Cabinet to invest 100 to 150 million euros in the further growth of the chip sector in the coming years.

Chip machine manufacturer ASML warned earlier this year that the Netherlands could become too small for the company's expansion plans. "The Netherlands has a unique position as a small country with a strong chip sector. It would be a shame if we did not allow it to grow further," ASML financial director Paul Verhagen told BNR Nieuwsradio.

Eventually, the appeal was heard in The Hague. Together with the Eindhoven region, 2.5 billion euros will be invested in improving the business climate for the chip sector.