In normal times, the sector represents 5.7% of the national wealth, with a turnover of €14.5 billion. However, even if the industrial sector did not have to interrupt its activities during the lockdown, demand has fallen sharply, explained Minister of the Economy Franz Fayot in the Chamber of Deputies on Tuesday. The minister made these statements in response to a parliamentary question by André Bauler, a Democratic Party MP. Fayot has visited the affected companies in person to get an idea of the situation.
Fayot explained that during these visits, it quickly became clear that it was above all the lack of staff in the spring that had forced the companies to reduce production. In fact, a large proportion of the staff had been absent due to illness or family leave. As of October, turnover had fallen by 30 to 40%. Another reason is that the customers of most of these companies have themselves been in lockdown and there were thus bound to be fewer orders. In addition, the companies' suppliers and deliverers also stopped working, which had often led to a shortage of raw materials. Another big problem that caused difficulties for Luxembourg companies was the closure of the borders, Fayot continued.
The minister stressed that despite the difficulties, each company must be considered individually. There are also companies that are coping well with the crisis at the moment. The feedback from the field also shows that government aid has been well appreciated.
Companies have been given the necessary incentive to invest, according to the Minister of the Economy.
For instance, Fayot explained, companies are benefitting from co-financing when they invest in digitalisation. His ministry noted that despite these difficult times, many companies are investing thanks to these aid models.
