Dutch manufacturing industry sees demand drop sharply

The manufacturing industry again reduced production and purchasing. Employment is also falling; Many companies have not renewed temporary contracts.

In recent months, the Nevi Dutch Manufacturing PMI has already shown that the recovery of the second quarter will not continue this autumn. In October, ASML confirmed that growing demand for its chip machines is not expected until next year. The chip machine manufacturer also lowered its expectations for 2025. ASML is the most important customer for dozens of Dutch companies. The lack of recovery in demand for chip machines is therefore bad news for the Dutch industry.

The slump in Germany is also having a negative impact on the Dutch manufacturing industry. Car manufacturer Volkswagen announced that it wants to close three factories, causing the loss of tens of thousands of jobs. This will lead to lower demand for car parts, which will affect a few hundred Dutch suppliers.

In the meantime, the industry is the subject of political discussions. In Europe, Mario Draghi, former president of the European Central Bank (ECB) and former prime minister of Italy, presented his long-awaited report on Europe's competitiveness. The new European Commission, again led by President Ursula von der Leyen, has embraced the report's conclusions, and envisages substantial investments in high-tech business. However, it seems unlikely that the Member States will be able to agree on a new major investment programme.

Industrial entrepreneurs will be looking forward to the outcome of the US presidential elections with interest. Donald Trump has announced hefty import tariffs, which would also affect Dutch exports. The European Commission is already looking for a response, and if Trump is indeed re-elected, will want to negotiate with him so that he weakens the import duties on European products. In short, the election results are important for Dutch industry and for international trade.