2024-05-28

 

• 9 out of 10 auctions in the metal sector are due to voluntary business closures

• Fewer young people willing to take over their parents’ companies

• Major shortage of technically skilled personnel

 

 

Belgian companies in the metal sector are currently struggling and facing growing uncertainties. Especially the shortage of personnel in the industry is causing problems for entrepreneurs. As a result, more and more of them are deciding to voluntarily close their businesses. This is evident from figures from Troostwijk Auctions, which are also recognized by Vlamef, the Flemish Metal Federation for SMEs.

 

Rise of Eastern European Bidders and Buyers

In 2023, Troostwijk Auctions organized 81 auctions for 53 companies in the Belgian metal sector — almost as many as the 85 auctions in 2022. A total of 7,599 lots were auctioned in 2023. The first five months of 2024 show that again this year, a large number of organizations in the metal industry are ceasing operations, with already 30 auctions held this calendar year. The online auction platform notes that there is growing interest from Eastern Europe. “In recent years, we increasingly see bids and buyers from Eastern Europe for Belgian equipment. Especially from countries like Romania, Poland, and the Czech Republic,” says Joos Dauwe, Account Manager Metal at Troostwijk Auctions.

 

Less Continuation by the New Generation

Of the 53 metal companies that auctioned, the majority (49) voluntarily closed their businesses. “In the past, it was natural for the children to take over the company,” says Dauwe. “In conversations with entrepreneurs, we notice that the new generation, unfortunately, is not eager to take over the business from their parents. Finding successors outside the family also proves difficult. As a result, metal entrepreneurs are increasingly choosing to close their companies voluntarily. By doing so, they keep control of the process. That too is entrepreneurship.”

 

Personnel Shortage the Biggest Obstacle

Vlamef, the Flemish Metal Federation for SMEs, recognizes the figures communicated by Troostwijk. “Small and medium-sized entrepreneurs are having a very hard time. This is mainly due to a large shortage of personnel. The sector is facing significant aging; the inflow of new workers has stalled. Younger generations are increasingly less interested in manual work. The government has pushed for a knowledge economy, but the essence of engineering is no longer being taught. Furthermore, government regulations are increasing the pressure on entrepreneurs. It is no longer enjoyable to run a business in this sector. If we cannot turn the tide, many entrepreneurs will have no choice but to close their companies and sell their assets,” says Johan van Bosch, General Secretary at Vlamef.