#ManuMatters: industry essential cornerstone of economy

The manufacturing industry drives our exports and our prosperity. Every manufacturing job creates at least one other in related service sectors. Almost one in four Belgians earn their income thanks to manufacturing. Today, the largest contribution to that employment still comes from the (high) technology sectors that Agoria represents. Technological innovation enables our companies to differentiate themselves competitively and to translate that lead into added value, jobs and prosperity. 

We can therefore say that the manufacturing industry and related services are responsible for higher added value within our economy. In terms of share of added value, our country falls more sharply than the stronger economies within Europe, to below the European average. Since 2015, however, we have seen the positive effect of measures to strengthen our competitive position (the tax shift and index jump, among others), with stagnation of the manufacturing industry's market share, and even a slight improvement. So the next steps in this direction are needed, because it really is five to twelve, if not later.

Indeed, the impact of corona on the manufacturing industry, depending on the sector, is enormous, and it looks like the recovery could take several years. Together with the University of Antwerp, Agoria engaged in in-depth discussions with 25 manufacturing business leaders about the additional challenges arising from Covid-19. And other permanent challenges remain. For example, the shortage of skilled profiles hinders the growth of companies. If we want to continue to attract investment, we must continue to focus on a favorable social climate, the common way forward. And of course, the challenges around congestion, energy supply and more recently material shortages and rising prices, remain hot topics.

Agoria calls on companies to transform themselves into crisis-resistant and resilient enterprises, to shift up a gear in digitalization where added value can be created, and to align with the European agenda for prioritized technologies. Governments are asked to make a sustained commitment to measures that give our companies the oxygen they need, and to strive for leadership and industrially relevant technological excellence. The foundation of the manufacturing industry deserves to be significantly strengthened so that we can further leverage our technological excellence.

We therefore have every interest in safeguarding the competitiveness of our companies to keep them here, but also to invest fully in the industry to increase their productivity and innovation. The success of a targeted relaunch plan that entails an increase in productivity is indispensable. 10,000 jobs in industry increases the final value added by 2.25 billion euros. So it pays to direct economic policy toward employment in industry. Moreover, almost 70 % of goods produced in Belgium are exported. Enforcing a level playing field in multilateral trade rules is an absolute priority that should not, however, lead to flat protectionism.

Did you know that there is a good chance that within a 100 km radius of your home, the parts of your new car are being developed and assembled? Or agricultural machinery that literally helps put bread on the table? Or high-tech weaving machines that provide you with new pants? ... We as a country are really good at developing and producing things that make our lives easier and better. Let's be rightly proud of that and cherish it! The manufacturing industry really does matter!