CEOs Plea to EU to Maintain Strong European Supply Chain

CEOs of Europe's leading home appliance brands have sent an open letter to Ursula von der Leyen, President of the European Commission.

Writing on behalf of one of the largest industries in Europe both in terms of economic contribution and as a major employer, the business leaders call to be included in the EU's industrial strategy.

The letter highlights the risk to EU supply chain resilience and sovereignty, seeking to gain greater protection for the sector.

The plea

In the letter, the CEOs protest their exclusion from the EU's industrial strategy. They urge immediate action on the part of von der Layen and the EU to recognise the home appliance sector in order to protect it and continue receiving the benefits of its output.

The open letter begins: "Home appliances are essential to modern life. They keep food safe, enable hygiene, preserve health and help millions of Europeans cut energy bills and emissions every day."

The home appliances industry is vital for Europe's supply chain, economy and resilience. Among the benefits it brings are:

• Contributes €79bn (US$92bn) to the EU economy
• Supports one million jobs
• Operates 130 factories across Europe
• Designs, engineers and manufactures in Europe

Appliances made in Europe reach countries around the world, making consumers' lives more productive, efficient and easier. 

The letter continues: "At a time when the Union needs industries that are resilient, future-oriented and deeply rooted in communities, we are exactly that kind of industry.

"And yet, we are being left out of Europe’s industrial strategy, caught in a policy gap between green ambition and industrial reality.

"We, the undersigned leaders of top European home appliance brands, call on you to champion a dedicated EU Action Plan for the Home Appliance Industry, that secures investment, drives innovation, simplifies regulation and fosters manufacturing in Europe."

The cost of inaction

Home appliance industries are already facing several challenges that are putting their businesses at risk.

Soaring energy prices are leading to rising costs, fragmented regulations mean confusion and increasingly stringent standards create barriers for companies.

Moreover, with growing global trade tensions, businesses are also facing pressure to move their manufacturing plants or to invest elsewhere.

These pressures, both within Europe and around the world, are forcing companies to relocate in order to maintain successful operations. 

Hakan Bulgurlu, CEO of Beko and President of APPLiA, a Brussels based trade association for manufacturers, says that, without urgent support, Europe risks losing:

• Control over a critical decarbonisation engine, with 1.5 billion appliances expected by 2030
• Leadership in a smart home market projected to reach $600 billion
• Its manufacturing base, with serious consequences for jobs, innovation and sovereignty
• European consumers’ access to the most efficient and affordable technologies.

If the EU committee does not act to protect this sector, there will be ripple effects throughout Europe's manufacturing industry, with fears surrounding facilities and job insecurity.

Any loss of industry will affect consumers around the world, but it will also weaken Europe's own supply chain resilience.

Looking forward

The letter asks the EU to create a unified European strategy and recognise home appliances as a strategic asset rather than something frivolous. 

It adds: "Our industry is more than a manufacturer of consumer goods, it is a quiet infrastructure enabling how Europe lives, saves and sustains.

"Our appliances are not luxuries, but tools of resilience and transformation, sitting at the intersection of climate, competitiveness and daily life."

It demands funding recognition to implement digital and green innovation as a means to build more resilient supply chains and stay ahead of competitors. 

This unified voice of European home appliances shows a commitment to innovation and sustainability, but it requires the support of the EU. 

These leaders believe Europe can be "the go to continent for manufacturing", but in order for this to happen, it needs to back its manufacturers.