Cost savings as a strategic lever in turbulent times

In sectors such as road transport, wages rose by more than 6% in 2024, followed by another 4% in early 2025. Because labour costs account for up to half of total expenditure at many industrial and logistics companies, this has a direct impact on profitability. New charges, such as the truck toll and higher German Maut rates, are adding to this pressure. At the same time, companies are often unable to pass on the full costs, putting further pressure on margins. Increased international competition means that orders are increasingly being shifted to foreign parties, further increasing the price pressure on Dutch transporters.
In addition, there is a growing need to invest in innovation and sustainability. Medium-sized companies recognise this importance, but face obstacles such as limited access to financing, staff shortages and increasing regulatory pressure. New obligations, such as the global COâ‚‚ levy on shipping emissions, also require additional investments from companies in the logistics and maritime sectors.
The chemical industry shows what happens when there is no room to invest. Due to high energy prices, limited grid capacity and strict environmental requirements, more and more chemical companies are considering moving their production out of the Netherlands. The sector has already shrunk by 15 to 20 per cent in five years. This could start a domino effect: if the chemical companies disappear, other industries that depend on chemical raw materials and semi-finished products will also get into trouble. The Netherlands is thus in danger of losing an essential strategic and sustainable industry to countries such as the US and China, which are actively investing in production capacity.
To prevent this, companies must closely examine their cost structure. Start by reducing indirect costs, such as overhead, purchasing, and external services. Automate repetitive processes in both operations and support functions to work more efficiently. Restructure the supply chain for supplier consolidation, local sourcing, and risk management. Free up resources by investing in core activities such as digitalisation, product development, and sustainability.
Cost reduction should not be an end in itself. It is a strategic means of creating space for growth and innovation. Structural progress requires sharp choices and a solid financial basis that starts with cost control.
