Dutch technology firms delay investment amid Middle East war, FME says

More than a fifth of Dutch technology companies surveyed by industry association FME have already postponed investment amid the war in the Middle East, according to an ANP report carried by Nieuws.nl. FME polled more than 100 companies; it says another tenth expect to delay investment. [1]

The association says profitability is under pressure at nearly half the respondents, while about a third report falling production. The ANP report also describes higher energy, transport and purchasing costs, as well as occasional delivery delays and limited availability of parts and materials.

If the unrest continues, more than eight in ten respondents expect supply-chain problems over the next six months, according to the ANP report. That is a forecast by the companies surveyed, rather than a measure of disruption that has already occurred. [1]

FME chairman Theo Henrar says the unrest is adding costs and uncertainty to pressures that technology companies already faced, including energy and wage costs and international competition. The association is calling for government support and argues that energy costs in the Netherlands should not be higher than in neighbouring countries.