Industrial sector sees significant growth in first quarter; Insiders still concerned

The turnover of the Dutch industrial sector experienced its steepest rise since the beginning of 2023 in the first three months of this year. However, the sector is still cautious as many companies have reported declining profits, Statistics Netherlands (CBS) reported.

The total turnover of the industrial sector was 2.9 percent higher than in the same period last year. Industrial companies saw a notable increase in foreign sales. The sales figures within the country remained at a similar level.

CBS economist Peter Hein van Mulligan pointed out that the growth figures look so impressive because the first quarter of last year was very bad for the industry’s sales abroad.

In the short term, the figures are actually negative. A total of 84 companies were declared bankrupt in the first quarter, which is 20 more than in the last quarter of last year.

Interest organizations for the sector warned during the last few months that it has become increasingly difficult to do business in the Netherlands. One example of this is the fact that, compared to neighboring countries, the companies in the industrial sector are forced to spend more on energy costs and the national CO2 tax.

Industrial companies told CBS that they are struggling with staff shortages and low demand.