As everyone and anyone in the industry scurries to sort out matters at their end, keeping the slew of upcoming EU legislations and regulations in mind that will arguably change the ground rules, it perhaps makes sense to feel the pulse of what's going on the ground.
The "ground" bit might seem a vague term, but the turf where buyers and sellers meet to thrash out matters, clinch lucrative deals and set their respective businesses in place for the immediate future is the right one to gauge that pulse.
But before one takes a predictive leap into the future, there are matters at hand that probably need immediate attention.
The domain of sourcing was turned upside down by the COVID-19 pandemic three summers ago, and the dust has not yet settled. There are trade wars (US - China - Xinjiang), the ongoing Europe conflict, rising inflation in far too many countries, and a host of other elements. All these affect the bottomline, and thinking on one's feet is a prudent way out.
The Chief Executive and Founder of Netherlands-based Mycotex by NEFFA, Aniela Hoitink, makes a pertinent observation: "We have seen these issues, and also COVID-19 and rising transport costs have affected the costs. Also, over the past few years manufacturing itself has become less reliable because of this. Currently, (manufacturing) companies are looking for reshoring/offshoring to mitigate those risks. What they forget is that most of the times materials still have to be imported from the Far East. Mycotex by NEFFA focusses on local and fully automated manufacturing so that we can bring back full production to Europe, including material development."
The assessment of the situation is not too different with Marti Puignou, Founder of Portugal's Eyand. Puignou remarks: "As a result of the present situation inflation is up a lot—meaning, costs are up and at the same time customers have less spending power. As a result, companies are very much focused in managing the present situation and investments in sustainability measures are put on hold or postponed as these involve higher costs."
For Orta, based in Türkiye, there have been other devastating matters to factor in. Explains Sustainability Chief Neslihan Sebla Önder: "The last couple of years have been tough in terms of costs. First COVID-19, then inflation everywhere, followed by the earthquake in Türkiye. All these are unfortunately increasing our costs. Thankfully, we have a more or less stable supply chain that we have been working with for many years and becoming solution partners for each other. But there are other costs that you cannot control via a good relationship, such as energy. This is where our projects on energy efficiency and reduction became very important."