News

Entrepreneurs Aim for Higher Productivity in Manufacturing

RE
Redactie
11 jun 2024 · 2 min read

Three-quarters of entrepreneurs in industry are taking measures to increase productivity in their companies. The most common measures are investments in technology and automation, as well as the introduction of more efficient work processes.

Measures for Improved Productivity

According to entrepreneurs, a shortage of staff is the biggest obstacle to increasing productivity. This is shown by data from CBS based on the Netherlands Business Survey (Conjunctuurenquête Nederland) of April 2024, carried out in collaboration with KVK, EIB, MKB-Nederland and VNO-NCW.

Labour productivity, the added value per hour worked, is an important factor for economic growth in developed economies. Earlier research shows that productivity in large companies (250 or more employees) is structurally higher than in medium-sized companies (50 to 250 employees). Small companies (5 to 50 employees) have the lowest average productivity. Since 2020, productivity in large companies has also grown faster than in medium-sized and small companies.

Larger Companies Take Measures More Often

In small companies, around 65% of entrepreneurs take measures to increase productivity, compared with 78% in medium-sized companies and almost 84% in large companies. Entrepreneurs in large companies more often take several measures at once, such as investments in technology and automation and the introduction of more efficient processes. Training for employees is mentioned least often, at 21%. Optimising the working environment and facilities is mentioned less often by large companies than by medium-sized and small companies.

Sector Differences in Measures

The percentage of entrepreneurs taking measures to increase productivity varies by sector. In industry, slightly more than 81% of entrepreneurs take measures, the highest percentage of all sectors. In the culture, sport and recreation sector this percentage is the lowest, at 54%. Investments in technology and automation are most popular in industry, while in the hospitality sector the focus is on optimising the working environment and facilities. Training for employees is mentioned most often in the automotive trade and repair sector, and least in agriculture, forestry and fishing.

Obstacles to Increasing Productivity

Almost 40% of entrepreneurs cite a shortage of staff as the main obstacle to increasing productivity, especially in the automotive trade and repair sector. External factors such as economic uncertainty are mentioned by more than 17% of entrepreneurs, particularly in mining and construction. Slightly more than 13% of entrepreneurs see a lack of financial resources as the biggest bottleneck, especially in agriculture, forestry and fishing. More than 36% of entrepreneurs experience no obstacles or take no measures to increase productivity.

Back to home
Entrepreneurs Aim for Higher Productivity in Manufacturing — TheIndustryNews.online