Belgian industry is in the doldrums. Nearly 30% of all the machines in Belgian factories currently stand idle, according to financial dailies De Tijd and L’Echo. The metal and technology federation Agoria describes the industrial slump as “unprecedented”. Sector federations are therefore calling for measures to tackle high costs and are warning of further job losses.
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Almost 3 in 10 machines in Belgian factories stand idle
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‘In our sector, we have been struggling with a capacity utilisation rate below 80 per cent for four years now. That is unprecedented,’ Patrick Slaets, chief economist at the metal and technology federation Agoria, told VRT NEWS.
“The cause lies in a lack of demand. There is too little investment, due to the high interest rates brought about by inflation and excessively high energy costs resulting from the geopolitical situation.” This is why energy-intensive companies are suffering the most.
A fall in capacity utilisation also means a greater risk of job losses, warns Slaets. “If the machines aren’t running, there’s no need for people to work there. In the technology sector, 20,000 jobs have already been lost over the past three years. That represents a 6 to 7 per cent reduction in capacity compared with pre-crisis levels.”
Chemical sector also reeling from high energy costs
The chemical sector is also facing tough times. According to a study by consultancy firm Roland Berger, European capacity fell by 9 per cent between 2022 and 2025. On top of that, only 69 to 70 per cent of that (reduced) capacity is being utilised.
It’s been announced that chemical company Vynova in Tessenderlo-Ham is temporarily halting production due to high energy prices. 600 employees are at risk of temporary unemployment.
“It is gradually becoming clear that this crisis is more severe than the previous one,” says Gert Verreth, spokesperson for the chemicals’ federation Essenscia.
It is being argued that urgent action is needed to address issues such as high energy costs and bureaucracy. This applies not only to Belgium, as the rest of Europe is also grappling with similar problems.
‘There is political awareness, but progress at European political level is too slow,’ says Verreth. On the one hand, the high costs must be tackled, but on the other, Europe must also send a strong signal on the geopolitical stage.
There is the context of increasingly aggressive industrial policies, with Trump’s tariff war and the mass production being encouraged by the Chinese government. “Europe must act more swiftly and urgently show its teeth.”
It’s being argued that in Belgium, in particular, labour costs must be kept under control. They are already higher than in neighbouring countries and are threatening to rise even further. “If they are not kept in line with our neighbours, we could end up in an industrial recession next year,” Slaets also fears.