“When Mario Draghi (former president of the ECB who submitted a report on European industry last September, Editor’s note) speaks of an existential crisis for the industry, for the Belgian industry, it’s true and even stronger. Batteries are draining“, he continues, referring to the economic monitor published by Agoria this Tuesday, where most of the “batteries” are in the red.
Biggest job loss since 2012
Based on the figures finalized in September, 2024 is the worst year since 2012. More than 5,900 positions have been eliminated in the technology sector in 9 months, including 5,034 due to restructuring, compared to less than 900 in 2023 and rather a decrease of these deletions for restructuring for twelve years. The collective layoffs announced at Van Hool and Audi Brussels, linked to the sector, did not help.
During the first half of this year, technological manufacturing activity also fell by 7% on an annual basis. On the IT side, growth was only 2.5%, while the average has been around 6% in recent years.
Battle in sight between the Federal and Brussels on the Audi case: “There is also another gray area: pollution”
“Eight of the ten indicators on our economic monitor are in the red. We find ourselves at a pivotal moment: at all levels of power, new governments must quickly adopt policies that create a favorable climate for our industry. This is why we call for rapid action”, adds Bart Steukers. “The risk is to be in a worse situation next year. We can still correct things, but we are at a turning point“, he says, hoping that 2025 will be less painful than expected (still 3,000 positions lost to wait, with the situation unchanged) and that 2026 can bring back better days.
Politicians must take action
“Vivaldi, the Minister of the Economy Dermagne (PS) and others, have bet everything on purchasing power. The next government must focus everything on industry“, continues the boss of Agoria.
Bart Steukers takes an example from the defense industry, which has attracted the good graces of the federal government in recent years, particularly since Russia’s invasion of Ukraine. “We want to avoid wasting public money, yes. We must choose strategic sectors. But the entire Belgian industry must function. We will not grow champions in a desert. We can focus on this or that sector to make them champions, but the basic conditions must be stable. You shouldn’t do things by halves“, he replies when we highlight the apparent paradox of a form of “sprinkling” across the entire industry.
gull“We will not grow champions in a desert.”
“The narrative is improving. This is the point of optimism in the message,” he continues, rather happy to see that policies at the regional level are taking a more liberal turn since the June elections. Ditto at the federal level, even if negotiations are still ongoing, as in Brussels. “We could have more aligned governments but we are nevertheless starting to feel that these challenges, these ideas, are increasingly shared by politicians. But things are accelerating much faster than we imagined. So, actions must follow words. And this is work that politicians, Agoria, as well as businesses must do together and quickly. There is an emergency“, he slips.
Construction and renovation: “The shock was brutal for consumers”
Falling market shares in Belgium
To return to the figures side, Agoria specifies that general activity in the technology sector fell by 3.4% compared to the first half of 2023, with only telecoms and IT services remaining very slightly in the green (+2. 5%).
Belgium’s market shares have also decreased. They are 4.4% of European exports of technological goods, compared to 4.8% at the same period in 2023. And they were 6.3% around 20 years earlier.
Belgium’s market shares have also decreased. They are 4.4% of European exports of technological goods, compared to 4.8% at the same period in 2023. And they were 6.3% around 20 years earlier.
The only “positive” indicator is the reduction in vacant positions, going from 17,000 to 15,000 between September 2023 and September 2024. But the elimination of positions automatically eliminates part of the demand.
Copyright reform
Among the sector’s grievances against Vivaldi, the outgoing government, the copyright reform, planning to reduce the tax loophole granted to IT developers, had created a stir.
“It’s not perfect, there are other solutions, surely, but eliminating this flexible tax advantage without replacing it has had an impact. We need this flexibility to attract profiles. And I would add that Research and Development is the driving force behind our excellence. We don’t do it too badly in Belgium, it’s our asset. Taxation is good. But let’s make sure that this part, which works best, continues to work“, continues Bart Steukers, CEO of Agoria.
gull“Eliminating this flexible tax benefit without replacing it has had an impact.”
“Companies in the Belgian technology sector are facing the consequences of copyright reform, which prohibits them from paying them to their employees. This measure forces companies to turn to other compensation systems, generally more expensive, with significant consequences for employees.“, precisely specifies the human resources consulting company Hudson, which deplores the situation and mentions a median amount of 640 euros lost per month per worker concerned, mainly developers.
Copyright reform: around 640 euros lost per month per affected worker, mainly developers.
“Employers try to partially compensate for this loss by granting other compensation, such as fixed costs and meal vouchers, but these measures often prove insufficient to cover the overall amount of the loss. Even if we consider the total salary package excluding mobility, the loss of basic salary is not fully compensated”, explains Paul-Etienne Siegrist, Senior Manager at Hudson. “The drop remains 9% on average. A difference that companies are trying to erase through the company car or the mobility budget. term-t-il.
