Manufacturing output nearly 20 times higher than 100 years ago

26/11/2024 15:00

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.

The CBS statistics on manufacturing output are dated back to 1922. In the 1920s and 1930s, manufacturing industries such as textiles, shipbuilding and food processing in particular, were 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 stagnation in output. Starting in the 1980s, a number of industries were moved to countries with lower wager costs. As a result, the manufacturing industry increasingly focused on high-end manufacturing and techniques, and output growth picked up again. Since the turn of the century, this has continued to grow despite the impact of the financial crisis and the coronavirus pandemic.

Industrial production index (IPI)
Jaar	Industrial production index (IPI) (2023=100)
1922	5.0
1923	5.0
1924	5.7
1925	6.5
1926	7.2
1927	7.2
1928	7.9
1929	9.3
1930	7.9
1931	7.2
1932	7.2
1933	7.2
1934	7.2
1935	7.2
1936	7.9
1937	8.6
1938	8.6
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949	9.3
1950	10.8
1951	11.5
1952	11.5
1953	12.5
1954	13.8
1955	14.7
1956	15.6
1957	16.3
1958	16.3
1959	17.9
1960	19.9
1961	20.7
1962	21.7
1963	22.9
1964	25.0
1965	26.3
1966	27.4
1967	28.2
1968	30.4
1969	33.4
1970	34.6
1971	35.4
1972	36.9
1973	39.1
1974	41.1
1975	38.8
1976	41.1
1977	40.9
1978	41.7
1979	42.7
1980	42.6
1981	42.1
1982	41.6
1983	42.8
1984	45.6
1985	47.0
1986	48.7
1987	49.7
1988	51.1
1989	53.4
1990	55.2
1991	55.7
1992	56.3
1993	56.0
1994	58.9
1995	61.1
1996	61.9
1997	62.9
1998	64.8
1999	67.0
2000	71.8
2001	71.7
2002	71.8
2003	71.2
2004	73.8
2005	75.5
2006	78.1
2007	82.8
2008	81.7
2009	74.6
2010	79.7
2011	82.4
2012	81.8
2013	80.9
2014	81.8
2015	82.2
2016	84.8
2017	87.5
2018	90.6
2019	89.6
2020	86.8
2021	93.5
2022	100.6
2023	100.0

Industrial production index (IPI)
Jaar	Industrial production index (IPI) (2023=100)
1922	5.0
1923	5.0
1924	5.7
1925	6.5
1926	7.2
1927	7.2
1928	7.9
1929	9.3
1930	7.9
1931	7.2
1932	7.2
1933	7.2
1934	7.2
1935	7.2
1936	7.9
1937	8.6
1938	8.6
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949	9.3
1950	10.8
1951	11.5
1952	11.5
1953	12.5
1954	13.8
1955	14.7
1956	15.6
1957	16.3
1958	16.3
1959	17.9
1960	19.9
1961	20.7
1962	21.7
1963	22.9
1964	25.0
1965	26.3
1966	27.4
1967	28.2
1968	30.4
1969	33.4
1970	34.6
1971	35.4
1972	36.9
1973	39.1
1974	41.1
1975	38.8
1976	41.1
1977	40.9
1978	41.7
1979	42.7
1980	42.6
1981	42.1
1982	41.6
1983	42.8
1984	45.6
1985	47.0
1986	48.7
1987	49.7
1988	51.1
1989	53.4
1990	55.2
1991	55.7
1992	56.3
1993	56.0
1994	58.9
1995	61.1
1996	61.9
1997	62.9
1998	64.8
1999	67.0
2000	71.8
2001	71.7
2002	71.8
2003	71.2
2004	73.8
2005	75.5
2006	78.1
2007	82.8
2008	81.7
2009	74.6
2010	79.7
2011	82.4
2012	81.8
2013	80.9
2014	81.8
2015	82.2
2016	84.8
2017	87.5
2018	90.6
2019	89.6
2020	86.8
2021	93.5
2022	100.6
2023	100.0

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 clothing industry’s output peaked in 1964, which had doubled in ten years time. 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.

IPI - textile, clothing and leather industry
Jaar	Textile industry (2023=100)	Clothing industry (2023=100)	Leather and footware industry (2023=100)
1953	84.9	115.5	142.8
1954	90.4	130.6	155.5
1955	93.4	141.7	167.6
1956	98.9	158.8	170.5
1957	99.2	155.5	163.0
1958	92.0	154.2	157.8
1959	102.8	169.9	172.8
1960	109.3	183.7	170.5
1961	112.8	206.0	185.5
1962	113.2	201.4	190.1
1963	121.7	218.5	198.1
1964	128.0	233.6	213.1
1965	123.8	224.4	212.5
1966	130.6	223.1	210.2
1967	120.5	193.6	205.6
1968	127.8	206.0	207.9
1969	138.9	207.3	200.4
1970	137.3	196.8	180.8
1971	138.6	198.7	182.5
1972	137.7	197.4	181.3
1973	134.1	192.4	176.6
1974	134.4	192.7	176.9
1975	124.2	178.1	163.4
1976	128.6	184.4	169.3
1977	115.1	164.9	151.5
1978	116.9	167.5	153.8
1979	115.3	165.2	151.7
1980	108.0	154.9	142.2
1981	98.9	141.8	130.2
1982	102.1	146.4	134.4
1983	99.5	142.7	131.1
1984	98.8	141.7	130.1
1985	100.8	144.5	132.7
1986	109.3	156.8	144.0
1987	101.4	145.5	133.7
1988	102.6	147.1	135.1
1989	105.1	156.0	134.3
1990	106.8	167.7	136.0
1991	104.3	173.1	133.7
1992	101.8	150.2	131.0
1993	100.2	155.3	148.2
1994	98.7	160.4	143.3
1995	95.2	144.4	122.1
1996	95.9	128.4	107.9
1997	98.1	122.2	116.1
1998	107.9	115.7	114.3
1999	112.3	103.5	107.6
2000	117.3	99.1	122.7
2001	115.8	97.9	121.2
2002	110.7	93.6	115.9
2003	108.3	91.5	113.4
2004	95.1	80.4	99.6
2005	95.8	81.0	100.6
2006	98.2	83.0	104.1
2007	105.1	88.9	111.7
2008	102.2	86.5	108.7
2009	88.8	75.1	92.9
2010	100.2	84.7	105.6
2011	103.8	83.8	109.0
2012	100.8	81.6	101.6
2013	102.7	78.3	100.8
2014	104.6	77.1	106.7
2015	107.2	76.8	107.1
2016	105.1	79.5	101.0
2017	113.4	80.3	107.8
2018	117.1	81.6	106.6
2019	111.9	79.0	117.7
2020	104.0	72.6	97.2
2021	111.0	81.6	111.4
2022	108.4	90.0	111.9
2023	100.0	100.0	100.0

IPI - textile, clothing and leather industry
Jaar	Textile industry (2023=100)	Clothing industry (2023=100)	Leather and footware industry (2023=100)
1953	84.9	115.5	142.8
1954	90.4	130.6	155.5
1955	93.4	141.7	167.6
1956	98.9	158.8	170.5
1957	99.2	155.5	163.0
1958	92.0	154.2	157.8
1959	102.8	169.9	172.8
1960	109.3	183.7	170.5
1961	112.8	206.0	185.5
1962	113.2	201.4	190.1
1963	121.7	218.5	198.1
1964	128.0	233.6	213.1
1965	123.8	224.4	212.5
1966	130.6	223.1	210.2
1967	120.5	193.6	205.6
1968	127.8	206.0	207.9
1969	138.9	207.3	200.4
1970	137.3	196.8	180.8
1971	138.6	198.7	182.5
1972	137.7	197.4	181.3
1973	134.1	192.4	176.6
1974	134.4	192.7	176.9
1975	124.2	178.1	163.4
1976	128.6	184.4	169.3
1977	115.1	164.9	151.5
1978	116.9	167.5	153.8
1979	115.3	165.2	151.7
1980	108.0	154.9	142.2
1981	98.9	141.8	130.2
1982	102.1	146.4	134.4
1983	99.5	142.7	131.1
1984	98.8	141.7	130.1
1985	100.8	144.5	132.7
1986	109.3	156.8	144.0
1987	101.4	145.5	133.7
1988	102.6	147.1	135.1
1989	105.1	156.0	134.3
1990	106.8	167.7	136.0
1991	104.3	173.1	133.7
1992	101.8	150.2	131.0
1993	100.2	155.3	148.2
1994	98.7	160.4	143.3
1995	95.2	144.4	122.1
1996	95.9	128.4	107.9
1997	98.1	122.2	116.1
1998	107.9	115.7	114.3
1999	112.3	103.5	107.6
2000	117.3	99.1	122.7
2001	115.8	97.9	121.2
2002	110.7	93.6	115.9
2003	108.3	91.5	113.4
2004	95.1	80.4	99.6
2005	95.8	81.0	100.6
2006	98.2	83.0	104.1
2007	105.1	88.9	111.7
2008	102.2	86.5	108.7
2009	88.8	75.1	92.9
2010	100.2	84.7	105.6
2011	103.8	83.8	109.0
2012	100.8	81.6	101.6
2013	102.7	78.3	100.8
2014	104.6	77.1	106.7
2015	107.2	76.8	107.1
2016	105.1	79.5	101.0
2017	113.4	80.3	107.8
2018	117.1	81.6	106.6
2019	111.9	79.0	117.7
2020	104.0	72.6	97.2
2021	111.0	81.6	111.4
2022	108.4	90.0	111.9
2023	100.0	100.0	100.0

Tobacco industry virtually gone

Starting in the 1950s, tobacco production in the Netherlands grew substantially, both for the domestic market and for exports. However, in the 1970s awareness on 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 tobacco shrank significantly in the years that followed. Nowadays, tobacco output is 97 percent lower than during the peak in 1973.

Production index of the tobacco industry
Jaar	Tobacco industry (2023=100)
1953	1693.8
1954	1783.8
1955	1810.5
1956	1905.4
1957	1942.6
1958	1926.4
1959	1961.3
1960	2031.0
1961	2167.9
1962	2205.2
1963	2321.1
1964	2383.5
1965	2534.3
1966	2352.7
1967	2502.7
1968	2577.2
1969	2626.7
1970	2687.4
1971	2770.9
1972	3138.9
1973	3512.5
1974	3060.3
1975	2524.5
1976	2474.3
1977	2599.1
1978	2028.6
1979	2009.9
1980	1538.2
1981	1414.2
1982	1248.9
1983	1244.0
1984	1066.5
1985	836.4
1986	607.8
1987	553.5
1988	553.5
1989	626.5
1990	703.5
1991	748.9
1992	713.2
1993	721.3
1994	789.4
1995	846.1
1996	804.0
1997	813.7
1998	835.6
1999	821.0
2000	861.5
2001	858.3
2002	999.3
2003	921.5
2004	880.1
2005	896.0
2006	889.4
2007	938.7
2008	841.9
2009	842.2
2010	810.4
2011	839.1
2012	781.9
2013	753.0
2014	465.5
2015	167.2
2016	157.3
2017	163.9
2018	158.2
2019	155.4
2020	166.7
2021	149.3
2022	123.9
2023	100.0

Production index of the tobacco industry
Jaar	Tobacco industry (2023=100)
1953	1693.8
1954	1783.8
1955	1810.5
1956	1905.4
1957	1942.6
1958	1926.4
1959	1961.3
1960	2031.0
1961	2167.9
1962	2205.2
1963	2321.1
1964	2383.5
1965	2534.3
1966	2352.7
1967	2502.7
1968	2577.2
1969	2626.7
1970	2687.4
1971	2770.9
1972	3138.9
1973	3512.5
1974	3060.3
1975	2524.5
1976	2474.3
1977	2599.1
1978	2028.6
1979	2009.9
1980	1538.2
1981	1414.2
1982	1248.9
1983	1244.0
1984	1066.5
1985	836.4
1986	607.8
1987	553.5
1988	553.5
1989	626.5
1990	703.5
1991	748.9
1992	713.2
1993	721.3
1994	789.4
1995	846.1
1996	804.0
1997	813.7
1998	835.6
1999	821.0
2000	861.5
2001	858.3
2002	999.3
2003	921.5
2004	880.1
2005	896.0
2006	889.4
2007	938.7
2008	841.9
2009	842.2
2010	810.4
2011	839.1
2012	781.9
2013	753.0
2014	465.5
2015	167.2
2016	157.3
2017	163.9
2018	158.2
2019	155.4
2020	166.7
2021	149.3
2022	123.9
2023	100.0

Dutch manufacturing evolves around machinery industry

The machinery industry's output has increased more than five times since 1990. As a result, this industry grew much faster than the industry as a whole, which grew 81 percent over the same period. Initially, the manufacturing industry mainly evolved around standard production machinery, but it has gradually specialised in more advanced machinery for sectors such as semiconductor and medical technology. Between 2016 and 2023 in particular, machinery output grew substantially and more than tripled.

Production index of the machinery industry
Jaar	Machinery industry (2023=100)	Total industry (2023=100)
1990	16.7	55.2
1991	17.1	55.7
1992	16.6	56.3
1993	16.8	56.0
1994	18.1	58.9
1995	19.4	61.1
1996	20.4	61.9
1997	21.7	62.9
1998	22.2	64.8
1999	21.1	67.0
2000	24.8	71.8
2001	23.2	71.7
2002	22.4	71.8
2003	23.7	71.2
2004	26.8	73.8
2005	27.1	75.5
2006	29.4	78.1
2007	31.7	82.8
2008	30.4	81.7
2009	24.7	74.6
2010	29.9	79.7
2011	32.1	82.4
2012	31.3	81.8
2013	31.3	80.9
2014	33.1	81.8
2015	32.9	82.2
2016	32.0	84.8
2017	37.3	87.5
2018	45.8	90.6
2019	53.2	89.6
2020	56.5	86.8
2021	71.6	93.5
2022	94.8	100.6
2023	100.0	100.0

Production index of the machinery industry
Jaar	Machinery industry (2023=100)	Total industry (2023=100)
1990	16.7	55.2
1991	17.1	55.7
1992	16.6	56.3
1993	16.8	56.0
1994	18.1	58.9
1995	19.4	61.1
1996	20.4	61.9
1997	21.7	62.9
1998	22.2	64.8
1999	21.1	67.0
2000	24.8	71.8
2001	23.2	71.7
2002	22.4	71.8
2003	23.7	71.2
2004	26.8	73.8
2005	27.1	75.5
2006	29.4	78.1
2007	31.7	82.8
2008	30.4	81.7
2009	24.7	74.6
2010	29.9	79.7
2011	32.1	82.4
2012	31.3	81.8
2013	31.3	80.9
2014	33.1	81.8
2015	32.9	82.2
2016	32.0	84.8
2017	37.3	87.5
2018	45.8	90.6
2019	53.2	89.6
2020	56.5	86.8
2021	71.6	93.5
2022	94.8	100.6
2023	100.0	100.0

There are fewer people employed in the manufacturing industry

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.

Sources

StatLine - Employed labour force; economic activity
StatLine - Industry; production and turnover