European industry faces rising energy costs and competitiveness challenges

European industry faces a widening energy gap compared to global competitors. According to the IEA, the difference in energy costs between the EU and China was approximately 20% in 2019, a gap projected to reach nearly 50% by 2025. In the EU, recoverable taxes and fees account for 36% of the price paid by industry, the highest rate in the Union.

To maintain competitiveness, manufacturers are shifting focus toward total process costs rather than just raw material prices. In powder coating, for example, the cost of energy for curing ovens and the efficiency of material recovery are critical. While cheaper powder may reduce initial purchase costs, factors such as curing time, coverage, and application stability can increase the total cost per part.

Additionally, energy efficiency in auxiliary systems, such as compressed air, is becoming a strategic priority. Often referred to as the fourth industrial medium, compressed air is essential for automation and packaging but is frequently overlooked as a source of potential cost reduction. Improving efficiency in these systems can significantly impact profitability, especially in high-volume, low-margin sectors like food processing and construction materials.