The Belgian graphics industry faced with falling sales: challenges and prospects

Marc Vandenbroucke (Febelgra)

In 2023, the Belgian graphics industry recorded a 4.94% drop in sales, marking a return to 2020 levels. At a time of rising costs and falling employment, investment in automation appears to be the key to remaining competitive.

Belgian graphics industry in decline

The year 2023 was marked by a 4.94% contraction in sales for the Belgian graphics industry, bringing the sector down to a total of 2.256 billion euros. This setback, following a year of strong growth in 2022, is seen as a step backwards, bringing the figures back to those of 2020. According to Marc Vandenbroucke, General Manager of Febelgra, this situation is a cause for concern: "More than ever, we need a public policy that supports entrepreneurship". However, newspaper printing plants have seen a steady rise in sales, reaching 40.9 million euros in 2023.

Causes of the downturn: raw materials and energy costs

One of the main reasons for this drop in competitiveness is the rising cost of raw materials and energy. "We have the highest energy prices in Europe for industrial production companies," stresses Vandenbroucke. Added to this is the automatic indexation of wages, a factor that weighs heavily on production costs. The direct consequence of this situation is a reduction in employment in the sector, with the number of workers down by 5% to 7,691.

Automation and robotization: necessary investments

Despite this difficult situation, the graphics industry continues to invest in automation and robotization. Investments rose by 12% in 2023, reaching 99 million euros. These investments are seen as essential to counter rising costs and maintain the sector's competitiveness. Vandenbroucke insists that "further automation and robotization is more than ever the answer to rising raw material costs and wage indexations".

Trade balance and exports down

The decline in sales also had an impact on exports, which fell by 3.77% to 709.5 million euros in 2023. Imports also suffered, falling by 7%, leaving a positive trade balance of 21 million euros. The main destinations for Belgian exports remain neighboring countries, with the Netherlands, France, Germany and the UK predominating.

Challenges for the future: the need for public support

Faced with these challenges, Febelgra is calling for more sustained public intervention. "We hope that the new decision-makers will recognize the added value of our sector," says Vandenbroucke. In its election memorandum, the federation highlights a number of priorities, such as the reintroduction of graphic orientations in technical education in Flanders, increased support under the Green Pact for Europe, and the maintenance of the current opt-out regime for unaddressed printed matter.

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