Industrial companies in Flanders applied for 2,830 permits last year for a new project, an expansion or to replace an expiring permit. This is 14 percent fewer than in the period 2018-2022, when an average of 3,290 applications were received annually. This is evident from an analysis by De Tijd based on data from the Flemish Environment Desk.
The decline shows that there is less appetite in boardrooms to invest. “This is a sign that our industry is having a hard time. The economic situation and competitiveness of Flanders and Europe are under pressure. This means that investment files are put on hold or even canceled,” says Frank Beckx, director of the research department of the employers’ organization Voka.
Not only the number of permits applied for, but also the number of permits issued fell. On average, almost 2,000 industrial permits were issued per year between 2018 and 2022. Last year there were only 1,820. This is not only a result of the sputtering influx of applications, they were also refused more often.
Both macroeconomic trends and local obstacles hinder the development of Flemish industry. For example, energy prices in the United States are much lower than in Europe and Belgium is struggling with a wage cost handicap after the significant indexation at the beginning of last year. At the same time, Flanders cannot participate in the subsidy bidding that is underway between EU countries.
Locally, the scarcity of land, the tightness on the labor market and especially the nitrogen issues are sore points. “We hear from many companies that they are doing nothing with their investment or expansion plans as long as there is no nitrogen decree. Once the majority has approved this in the Flemish Parliament, I expect an increase in applications,” says Beckx.
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