Last week at the Hannover Messe, Koninklijke Metaalunie handed over the Industry Vision 2019 to State Secretary Monica Keizer of Economics. In doing so, the industry association wanted to emphasise the need for government support for the manufacturing industry. We read this in a press release.
"The SME metal industry is crucial for an innovative and powerful economic climate in the Netherlands," the Metaalunie kicked off the Industrievisie. "This involves inventing new products combined with making them smart. Companies in the manufacturing industry face major challenges. These challenges, combined with the relatively high level of labour costs in the Netherlands, make it essential for a healthy Dutch manufacturing industry, that the government pursues a sound industrial policy based on a stimulating entrepreneurial climate."
The industry association argues that good policy can support and encourage the Dutch manufacturing industry to produce smarter. This will ensure that the Netherlands remains valuable and jobs are preserved. The Metaalunie calls for active and sector-specific support and measures to support and strengthen the strength of the SME metal industry. These could include measures aimed at increasing productivity through smarter production, policies aimed at ensuring that the sector can optimally create value for the Dutch economy and policies that stimulate national procurement by the government and the business community. "The Netherlands needs a government policy that focuses on actively stimulating production and value creation in the Netherlands. Metaalunie is eager to work with the government on measures that strengthen the productivity of SME metal companies. In our prosperous, but also ageing society, labour productivity growth is necessary to not only be able to maintain the level of prosperity, but also increase it," said Fried Kaanen, chairman Koninklijke Metaalunie.
Productive manufacturing
The focus in the coming years should be on stimulating process innovation. The implementation of new, often digital, technologies in the business processes of SME manufacturing companies is necessary to realise the expected increase in productivity. "This implementation lags structurally due to too high costs of investments, too heavy deployment of people during implementation and too high costs for external advice," Kaanen reveals. "Stimulating innovation is positive in itself, but in addition, more focus should be put on the realisation of process innovations by SME makers."
SME manufacturing companies consume relatively little energy. This does not alter the fact that saving energy and making generation more sustainable needs attention. The domestic manufacturing industry can make a huge contribution to the climate challenge by producing "locally" for e.g. offshore and onshore wind, PV installations and smart-grids. A circular manufacturing industry also ensures that raw materials are conserved, including the rare metals needed for renewable energy generation. A circular domestic manufacturing industry avoids huge CO2 emissions elsewhere in the world.
Government as client
Metaalunie calls for a broad programme in which the government acts as a launching customer in the various transitions. For example, if the Netherlands wants to build more sustainably, it is environmentally unacceptable to have new lock gates for the North Sea Canal made in Korea, ship them here and have those ships sail back empty. As another example, tendering Marine ships to a French company can be done. But make sure the Dutch supplying industry also benefits.
Ensure unambiguous rules that are easy for SMEs to use and enforce. A good SME test for new rules helps. Make sure the rules are in line with European rules to create a level playing field within Europe. Overly burdensome local rules on the environment and zoning make things unnecessarily difficult for manufacturing entrepreneurs.
Human capital
Sufficient skilled workers, properly trained, are indispensable in all transitions. Vocational education should pay more attention to vocational skills so that students can directly enter manufacturing companies. The Technology Action Agenda, drawn up jointly by the engineering industries and the education sector, describes a concrete roadmap for this and links all current initiatives. And, encourage lateral entry from less traditional fields.
Strengthen the position of Dutch SME manufacturing companies in European markets, paying particular attention to our neighbouring countries. Due to the moderate growth of consumption in the Netherlands, the growth potential for Dutch SME manufacturing companies should be sought in the expansion of exports. The innovative strength and flexibility of SME manufacturing companies should be utilised through targeted export support and the removal of barriers for SMEs.
The full Industry Vision 2019 can be read here.
Source+general photo: Metaalunie.
