Due to the war in Ukraine, far-reaching economic sanctions have been declared by both the European Union, the United States and Russia. These sanctions are also affecting Dutch industry, according to a survey by FME among 380 industry parties. Especially when it comes to purchasing prices, respondents expect their companies to be affected.
The sanctions imposed mean that, among other things, certain machines and technologies can no longer be exported from the Netherlands to Russia. Within the energy sector, exports of refinery technologies have also been banned. Exports of aviation parts and repairs in the aviation sector have also been restricted.
FME also points to export controls and controls on export financing to Russia. The industry association speaks of a far-reaching measure. A long list of goods and technology can no longer be exported to Russia or only under very strict conditions. These include electronics such as semiconductors, technology for telecommunications, information security technology, sensors and lasers, navigation and avionics and space technology.
Higher purchase prices and energy dependence
Over half of the respondents in FME's survey said they expect to face higher purchase prices of raw materials and semi-finished products, among other things. 39.6% point to energy dependence. They fear price increases or the Russians turning off the gas tap. 26.9% foresee lower sales of products. The supply chain also worries players; 22.3% expect problems in the supply chain. 15.2% expect consumer confidence to take a hit.
22.7% of respondents expect their organisation's turnover to fall by more than 5% due to the sanctions. 14.7% anticipate a turnover expectation of more than 10%. 4.8% expect their company's turnover to fall by more than 20%. However, the majority of business owners expect no impact on turnover.
Measures needed if sanctions persist
If the measures continue for a longer period, a part of entrepreneurs expects to have to take measures. 28% have not yet decided what these measures should be. 14.2% expect to have to look for new or different sales markets, while 12.4% expected to have to attract new or different suppliers. 9.9% then expect a reorganisation with personnel impact, while 3% want to invest in alternative production methods if sanctions persist.
"Dutch industry strongly condemns the Russian military invasion of Ukraine. A humanitarian disaster is currently unfolding in Ukraine. The heart of industrial companies - united in the entrepreneurs' organisation for the technological manufacturing industry FME - goes out to the Ukrainian people," FME writes in an explanation.
More information and all results are available here.
Author: Wouter Hoeffnagel
Source photo: Pixabay / Antonio Hernández
