A significant number of sectors are vulnerable to higher energy prices. This is apparent from calculations by ABN Amro. The bank analyzed twenty sectors and looked at the extent to which companies can pass on higher costs.
Failing that, profits either completely or largely evaporate, depending on the industry. If the passing on is successful, the prices for buyers will go up. Manufacturers of building materials and food are examples of sectors that have so far succeeded in passing on costs. The bank therefore expects further price increases there.
But passing on higher costs to customers is probably not possible everywhere and not completely. Vulnerable sectors are, according to the bank, greenhouse horticulture, the paper industry, heavy industry, the food industry, launderettes and the catering industry.
It is expected that a large part of the Dutch business community will be affected in the short term. There is a lack of precise figures, because the energy contracts constitute competitively sensitive information.
The extent to which entrepreneurs fix energy rates for a longer period of time “varies a lot”, says Madeline Buijs, economist at ABN Amro. “There are companies that do that, even if it’s often just for three months. Others choose not to do it at all.”
Profit evaporated
At over 15 percent, greenhouse horticulture is the sector in which energy accounts for the largest share of turnover. A number of growers have already decided not to take any risks with these high gas prices and to leave greenhouses empty, said sector organization Greenhouse Horticulture Netherlands. last week.
A small doubling of energy costs means that an average horticulturist no longer makes a profit, according to calculations by ABN Amro. Variable prices for gas and electricity are currently 3.5 times higher than last year.
In other sectors, such as the catering industry, laundromats and bakers, energy costs make up a few percent of the total costs. But due to lower margins, a large part of the profit is quickly lost if energy costs rise sharply.
Tax reduction
Friday became a package announced more than 3 billion euros in tax cuts on energy bills. Most are intended for households. Half a billion goes to SMEs.
“We have calculated that the business community spends a total of 7 billion per year on energy,” says Buijs. “It will help some, but we don’t expect this to be the solution.”
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