European Tool industry calls for urgent support measures on peaking energy costs

16 December 2022

The European Tool Association (CEO) is the association of European tool manufacturers. Our members produce high-quality hand tools as well as tools for woodworking, saws for metalworking and construction tools and -fixings in Europe.

CEO represents the interests of our around 180 member companies with an estimated sales volume of about 4 billion Euro per annum. Our paramount aim is to create and maintain best conditions of competitiveness for the European tool manufacturers.

Skyrocketing energy prices put competitiveness of European tool industry at risk

The current electricity and gas prices are threatening the competitiveness of the European tool industry. Many of the medium-sized companies that are characteristic of our industry are confronted with cost increases for new supply contracts of up to 1,000% compared to the previous contract period.

Tool production requires available energy at affordable costs. Energy is needed in various steps of the process, e.g. for forging, chipping, hardening and plating.

Due to the international competitive pressure, especially with Asian tool manufacturers, these cost increases could only be passed on to a very limited extent through price increases. This threatens the existence of many companies and risks the delocalization of important parts of the production facilities outside Europe.

At the same time, quality tools are crucial for everyday life. Tools are essential for manufacturing, repair, maintenance, construction and crafts. Thus the loss of production capacities in Europe would have major repercussions on many industry branches relying on quality tools, e.g. in the fields of infrastructure, building recovery or renewable energy.

Immediate support measures are needed to safeguard the European tool industry

The European tool manufacturers need quick and predictable solutions to tackle the exploding energy costs.

The CEO welcomes recent initiatives by individual EU Member States to support businesses with national support measures in various forms. In addition, we support the European Commission in its objective to establish a EU-wide framework guaranteeing a sustainable level of energy prices in all EU Member States.

At the same time, the time to act is now. CEO urges policy makers both EU and national level to make the provision of energy in the short and medium term at a sustainable price level a key priority. It is essential that European businesses do not have a major competitive disadvantage with producers in other parts of the world, often relying on less sustainable energy sources.

Immediate support measures for the industry are needed at this moment in time.