The technology industry is taking hard hits due to the corona crisis. Many companies expect to have to surrender a large part of turnover and the majority of companies expect liquidity problems. This is according to a survey by FME, the industry organisation that also directly advocates an 'intelligent restart'.
Nearly 600 entrepreneurs participated in FME's survey. The questionnaire showed that almost half of the companies are already facing a considerable drop in turnover and expect to have to give up at least 20% and sometimes as much as 50% in the third quarter. Almost 60% of companies will run into liquidity problems within a year. Half of those companies say they cannot rule out personnel measures to avoid bankruptcy if government measures are not taken.
The intelligent lockdown imposed by the Dutch government thus has drastic consequences for the technology industry. Already a few months ago, the corona hotline set up by the FME received reports that the international supply chain was under pressure. In an interview with RTL Z, FME chairwoman Ineke Dezentjé Hamming-Bluemink said that the entire industry was affected by the crisis, but that the automotive and maritime industries, among others, were hit extra hard. 84 per cent of those surveyed said they were experiencing a drop in demand. Only medical tech companies are currently still doing good business in this area because of demand for all kinds of healthcare products.
Innovate out of the crisis
To best survive the crisis, the FME advises to keep innovating above all. "Industry also helped our country through the previous crisis with innovation, so I hope that this will not be cut back," Dezentjé Hamming-Bluemink said. "Also, investments in innovation and R&D should be made precisely now." In addition, of course, it is also important to prepare for the one-and-a-half-meter society. "The industry is already busy redesigning work processes, because you will soon have to produce in a different way. It also means looking at possible improvements in earning models, further digitalisation and smarter production with smart industry, so that more can also be produced in the Netherlands."
Finally, the industry association is also appealing for government action. "These shocking figures show that this is a huge challenge. That is why we need people with the right skills both now and in the future. We need to ensure that technology staff are retained and can return to work, through a NOW 2.0 and NOW 3.0 scheme, which will allow us to absorb structural downturns."
The report prepared by FME following the survey can be read here:
Source: FME/RTL Z.
