“By sector, pharmaceuticals, software and IT services are highest rated. Construction, textile and metallurgy are the least rated.”
Construction
This result does not surprise Johan Geeroms at all. These are sectors that are very sensitive to high energy prices. Rising interest rates are also hitting the construction sector hard. It is especially in Europe that construction companies are in difficulty. Let’s also think about the increase in wages and the cost of raw materials compared to pre-Covid. On top of that, property prices are also falling. Our report also cites regulations (including environmental) as a major obstacle.
Metallurgy
Johan Geeroms on the metallurgical industry: “On the energy level, it's the same story. The metallurgical industry is a very energy-intensive sector which has benefited for years from cheap Russian gas. The European metal industry had already sounded the alarm last year. Although energy prices have fallen, they remain very high on average. It is especially the base metals industry which is going through a difficult period. Zinc and aluminium, for example.”
Textile
But, according to Johan Geeroms, the textile industry is taking hits from both sides in terms of energy. “High energy prices don’t just affect production and transportation. Fossil fuels are also an important raw material for textile production. Two thirds of all textiles are made from synthetic fiber.”
