Dutch industry expects to invest around 30% more in tangible fixed assets this year than last year. The increase is partly due to investments that were already planned for 2023, but have been postponed to this year. A fifth of the investments are aimed at sustainability and energy saving.
This is according to CBS' spring survey of investment expectations. For the survey, data were collected between mid-January and mid-May 2024 from companies with 10 or more employees from five industries: energy supply, water and waste management, mineral extraction, construction and manufacturing. They were asked about their expected investments in tangible assets such as buildings, machinery, transport equipment and computers.
Large differences between sectors
Large differences can be seen between sectors. For instance, companies in energy supply are the most positive. These are specifically companies dealing in electricity, natural gas, steam and chilled air, or involved in their production or distribution. Over a third of organisations in this sector expect to invest more this year.
Water and waste management companies also expect similar investment growth. The construction industry is the least positive of the industries surveyed. For instance, construction companies expect their investments to decline by a third compared to 2023.
Up to 30 per cent more investments in manufacturing
The manufacturing industry actually expects to invest 30 per cent more. The willingness to invest is particularly high within the electrical engineering and machinery industries, at 60%. Refineries and chemicals (+48 per cent) and textile industry (29 per cent) expect to invest more.
By contrast, companies in the wood and building materials industry as well as the paper and graphics industry expect to invest a quarter less.
Sustainability
CBS also looks specifically at sustainable investments in the survey. On average, companies in the manufacturing industry expect to use a fifth of their investments for sustainability and energy saving this year. Almost six per cent of expected investments are aimed at reducing emissions, with over five per cent focusing on energy saving with, for example, solar panels or insulation. Almost five per cent is related to circular products, including reuse of raw materials and waste materials. Over three per cent are focused on digital investments.
Zooming in on manufacturing, the textile, clothing and leather industry expects to invest relatively the most in sustainability and energy saving. This accounts for about a third of total spending. In many cases, the investments focus on energy saving and circular production.
Energy supply in the lead
Of the five industries surveyed, energy supply has the highest focus on sustainable investments. On average, parties expect more than half (54 per cent) of their investments this year to focus on sustainability. Among water companies and waste management companies, the percentage is around 27 per cent. In this industry, parties particularly focus on energy saving and circular production.
In the construction industry, a fifth of expected investments in 2024 are aimed at sustainability. Sustainable investments in this industry are mainly aimed at reducing emissions.
Industry invested the most in 2022
CBS also looks back to 2022 in the survey. The data collected show that in that year, large companies in the manufacturing industry made the largest investments in tangible fixed assets, at over EUR 10.4 billion. Within industry, refineries and the chemical industry were the biggest investors with EUR 3.1 billion. The food and beverage industry followed with some EUR 2.2 billion.
Large companies in energy supply will invest around €5.6 billion in tangible fixed assets in 2022. Companies in mineral extraction invested half a billion euros the least.
Author: Wouter Hoeffnagel
Photo: Janno Nivergall via Pixabay
