The Dutch machinery industry has grown rapidly in recent decades. In terms of added value, the sector is now one of the largest within Dutch manufacturing. Whereas many other industrial branches have remained stable or shrunk between 1995 and 2021, the machinery industry's share has actually increased from 6.4% in 1995 to 17.2% last year.
CBS figures show this. The added value of the total industry amounted to €93.4 billion in 2021, compared to €50.6 billion in 1995. The machinery industry is one of the segments that grew rapidly during this period. Whereas the segment provided €3.2 billion in added value in 1995, it has now grown to €16.1 billion.
The rapid growth of the machinery industry contrasts with other segments of industry. CBS cites both the electrical and electronics industry and the wood, paper and printing industry as examples. These industries did not see a similar increase, reducing their share in total industry. The electric and electronic industry's share fell from 11.8 per cent to 8.4 per cent. Of the wood and printing industry, the share decreased from 8.8 per cent to 5.1 per cent.
More employment
Employment in the machinery industry has also risen. In 2010, the industry still had 73,000 jobs, which by December 2020 had risen to 91,400 jobs. Here, large companies employing 100 people or more account for an increasing share of employment. In 2010, 38,900 of all workers in the machinery industry worked at a large company, representing 52.9 per cent. This number will increase to 58,600 persons or 64.1 per cent by 2020.
This growth is mainly among companies in the machinery industry with more than 500 employees. The share of these companies rose from 16.6 per cent in 2010 to 24.2 per cent in 2020. In the rest of the industry, the share of this group of companies decreased from 32.9 per cent in 2010 to 29.3 per cent in 2020.
Other sectors also benefit
CBS points out that besides the machinery industry itself, other sectors are also benefiting from the growth. Interestingly, the statistic cites the supply of employment agencies and job placement services to the machinery industry, which represented a production value of €816 million in 2020. This too contributes to the positive impact of the growing machinery industry on employment in the Netherlands.
Other important suppliers to the machinery industry include other industry sectors. However, think also of holding companies and management consultancies.
R&D
The Dutch machinery industry is also performing strongly in terms of research and development (R&D). The industry has seen relatively stronger growth in R&D than other industrial sectors. In 2013, for instance, the machinery industry accounted for 28.6 per cent of total industry R&D spending. In 2019, at €2.2 billion, this was 37 per cent. This makes the machinery industry account for almost a fifth (18.4 per cent) of R&D spending by all companies.
Author: Wouter Hoeffnagel
Photo: Pixabay / Michal Jarmoluk
