Industry policy cabinet: recognising importance of (manufacturing) industry

Industry policy cabinet: recognising importance of (manufacturing) industry
Frank van Hal
Frank van Hal
15 July 2022
4 min

From words now to deeds

More than ever, the importance of Dutch manufacturing is being recognised by the cabinet. With the presentation of its new industry policy, the cabinet finally gives the importance of innovation and digitalisation a place in its policy in the coming years.

Also starting - together with the industry - is the elaboration of an attack plan 'availability of sufficient (technical) staff' and sufficient (physical and environmental) space for business activity is a point of attention. Koninklijke Metaalunie is surprised by the lack of a clear vision on SMEs in this industry letter, but is moderately positive about a number of other points of attention. At the same time, much remains to be worked out in concrete terms.

The presented industrial policy contains a number of positive new accents. The cabinet wants to pursue an active industry policy aimed at greening and developing (manufacturing) industry. The cabinet also emphatically commits to its strategic independence. The importance of SMEs for our economy is hardly mentioned.

Labour market: joint approach necessary

The cabinet recognises that more qualified technical people are needed to achieve the many ambitions in the industry letter. Despite many efforts from government and industry, there is an increasing shortage of skilled workers in the Netherlands. Metaalunie hopes that the ministers of EZK, OCW and SZW will cooperate more emphatically to tackle the shortage of technically skilled personnel. The Lower House also recently passed a motion by a large majority calling on the minister of EZK to take more responsibility in this area.

Attention to manufacturing innovation SMEs too limited

What is new is that the cabinet mentions the opportunities of manufacturing innovation (process innovation) by SMEs, in relation to increasing labour productivity. Unfortunately, there is little news on how the cabinet plans to realise this. The ministry remains stuck in the image that digitalisation alone will solve everything. But fails to recognise that many SMEs still need to take big steps before digitalisation comes into the picture at all. Recently, for example, Metaalunie presented a concrete incentive scheme for production innovation for SME manufacturing companies (the SME booster) to the Ministry of Economic Affairs and the Lower House.

Metaalunie had expected the cabinet to have fleshed out incentives in the field of manufacturing innovation in more detail. In her letter, the minister only highlighted the commitment to Smart Industry. However, a recent independent evaluation by the Ministry of Economic Affairs, as well as a study by Berenschot in which the SME booster proposal was launched, showed that Smart Industry does not appear to be able to sufficiently reach manufacturing SMEs.

Circular economy: targeted approach desired

For now, many words but too few concrete actions to achieve a circular economy. The government has a role in boosting this form of economy. To this end, it will present a new National Circular Economy Programme before the end of the year. Metaalunie has been emphasising the opportunities for a circular manufacturing industry for years. With a National Circular Economy Programme, Metaalunie hopes that real successes will finally be achieved. With solid ownership within the cabinet and coupled to this, sufficient financial resources (for example from the Climate and/or Growth Fund).  

Balance of housing, nature and industry underlined

Never before has a cabinet so pronounced the importance of guaranteeing (regional) space for industry. Currently, in many municipalities, housing construction often comes at the expense of (expansion) opportunities for manufacturing companies. Later this year, the government will present a National Work Locations Programme and a tightening of the National Environmental Vision (NOVI). The aim is to guarantee - together with provinces and municipalities - the necessary space for business activity. Metaalunie welcomes this governing role of the cabinet.

Joint responsibility

The cabinet presents clear ambitions with the strategic and green industrial policy. However, many things still need to be worked out. Metaalunie therefore calls on the cabinet to seek (even) more cooperation with the business community when working out the plans. As far as Metaalunie is concerned, stimulating production innovation by SMEs should be given a more prominent place in industrial policy. And together with the business community, the cabinet must tackle the severe shortage of technically trained personnel. Metaalunie therefore assumes it will be actively involved in working out all ambitions in the coming months.

About Koninklijke Metaalunie

With 15,000 members, the Koninklijke Metaalunie is the largest trade association for the SME manufacturing sector. Its members have a combined turnover of more than 30 billion euros and employ around 180,000 people.

Frank van Hal

Frank van Hal works at Royal Jaarbeurs as senior content marketer in construction, installation and manufacturing. He is co-responsible for great live events such as BouwBeurs and VSK. He also looks after the Maakindustrie.nl/nieuws website and the weekly newsletter together with a colleague.