Manufacturing output nearly 20 times higher than 100 years ago

© ANP / Peter Hilz
Manufacturing output was nearly 20 times higher in 2023 than it was 100 years ago. This represents an average growth rate of 3 percent per year. Over the past 100 years, the composition of the manufacturing industry in the Netherlands has changed significantly. Statistics Netherlands (CBS) highlights a number of historical changes, as part of its 125th anniversary this year.
CBS statistics on manufacturing output date back to 1922. In the 1920s and 1930s, manufacturing industries such as textiles, shipbuilding and food processing were particularly important in the Netherlands. After World War II, reconstruction was a key factor for strong growth in manufacturing. In 1974, manufacturing output was more than four times higher than it was in 1949. The oil crises of the 1970s led to rising costs and a period of stagnation in output. Starting in the 1980s, a number of industries relocated to countries with lower wager costs. As a result, the manufacturing sector focused increasingly on high-end manufacturing and techniques, and output growth picked up again. Since the turn of the century, output has continued to grow despite the impact of the financial crisis and the coronavirus pandemic.


Manufacturing output of textiles, clothing and leather peaks in 1960s

The Dutch textile, clothing and leather industry experienced a boom in manufacturing output from the 1950s onwards. The output of the clothing industry peaked in 1964, having doubled in ten years. These industries’ activities were centred mainly in a few areas such as Tilburg, Waalwijk and Enschede. Starting in the mid-1960s, output began to shrink due to increasing competition from countries with lower wage costs. In 2023, production volumes of clothing and leather had more than halved since its peak in the 1960s, and textile production had shrunk by a quarter over the same period.


Tobacco industry has virtually disappeared

Starting in the 1950s, the Netherlands' tobacco industry grew substantially, producing both for the domestic market and for export. However, in the 1970s awareness of the harmful effects of smoking increased. This led to stricter regulations, anti-smoking campaigns and an increase in excise duties. As a result, the production of the tobacco industry shrank significantly in the years that followed. Nowadays, tobacco output is 97 percent lower than its peak in 1973.

Dutch manufacturing now focused on the machinery sector

The output of the machinery sector has increased by more than five times since 1990. As a result, this industry has grown much faster than the manufcturing sector as a whole, which grew 81 percent over the same period. Initially, the manufacturing industry mainly focused on standard production machinery, but it has gradually specialised in more advanced machinery for areas such as semiconductors and medical technology. Between 2016 and 2023, the output of the machinery sector grew substantially and more than tripled.


Fewer people employed in manufacturing

One hundred years ago, 28 percent of the employed labour force worked in manufacturing. In the years following World War II, this grew to a peak in 1960, when one-third of the employed labour force worked in manufacturing. In the decades that followed, the share declined steadily. In 2023, slightly more than 8 percent of the employed labour force worked in this industry. In absolute numbers, the number of industrial jobs in 2023 was also lower than during the 1960 peak. Due to growth in labour productivity, manufacturing output continued to increase during this period.

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