Market Monitor Machines Netherlands 2017

Market Monitor

  • Netherlands
  • Machines/Engineering

31st October 2017

Payment behaviour has been good over the last two years and the number of payment delays, defaults and insolvencies is expected to remain low in 2017.

  • The Netherlands is one of the world’s leading countries in food processing machinery. About two-thirds of the Dutch machinery production is exported, accounting for 20% of total Dutch export value. While about 60% of Dutch machinery exports is still going to countries in Europe, the share of exports to overseas markets is steadily increasing. The export share to Asia for food industry-related machinery is already 18%, while the importance of markets in Latin America and Africa is also increasing.
  • Turnover increased 16.5% year-on-year in H1 of 2017, with export turnover rising 18.7% and domestic turnover 7.9%. Value added growth in the Dutch machinery sector is expected to exceed 8% in 2017, driven by rising exports and domestic business investment. Currently production growth in the Dutch machinery industry is 24% higher than in mid-2016, due to advanced automatization and robotization of the manufacturing and assembling processes. However, sales prices declined in 2016 and H1 of 2017, mainly in overseas markets. That had an adverse effect on businesses’ profit margins which, despite robust sales, levelled off or even decreased slightly over the past 12 months.
  • Payment behaviour has been good over the last two years and the number of payment delays, and defaults is expected to remain low in 2017. While the overall indebtedness of machinery businesses is high, banks are willing to provide loans to the sector. Machinery insolvencies are expected to decrease further in 2018, by about 5%.
  • Our underwriting stance remains generally open for the industry. We pay attention to businesses´ investment capacity, realised margins, access to funds and order book. Due to its high export share, the sector is highly susceptible to adverse changes in international economic trends and market developments. Particularly currency fluctuations can affect both demand and financial results.

 

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