Dutch metal sector under pressure: online auctions offer a solution

International bidders drive up the number of auctions and the value of used equipment

The Dutch metal sector is under pressure. This is due to high investment costs for automation, an acute shortage of skilled workers, and increasing competition, especially from China. In the first eight months of 2025, the number of bankruptcy auctions in the Netherlands was up almost 10% (8.6%) from the same period a year earlier, according to figures from Troostwijk Auctions.

Difficult choices for entrepreneurs
Entrepreneurs in the metal sector are in a bind. "Automation is essential for faster, more energy-efficient, cheaper production and for meeting customer quality requirements. But the high investment costs are a major stumbling block for many entrepreneurs. Without well-trained personnel to operate and maintain the machines, such an investment is often not profitable. As a result, many companies are asking themselves whether they should buy new machines at all," explains Ben Heikoop, Metal Account Manager at Troostwijk Auctions.

Practical experience
One of the entrepreneurs experiencing these difficulties firsthand is Paul Meijering, owner of Paul Meijering Metalen, an expert in custom stainless steel work. He calls 2024 “one of his most difficult years yet.” Last year, the metal industry faced declining order flows and price pressure, while the costs of energy, wages, and materials remained high. This put pressure on margins and increased the number of loss-making companies. This was also the case at Meijering: “For the first time in many years, we made a loss.”

He was also looking for ways to keep his business future-proof. Recently, he traveled to China to purchase a new machine. “The quality and price over there are competitive now, and as an entrepreneur, you can't ignore that.” At the same time, he sold a press brake to an Irish buyer through Troostwijk Auctions. “The entrepreneur called me later: he was delighted with the second-hand press brake. Without Troostwijk, I would never have found this international buyer and I certainly wouldn't have got such a high price.”

Forced auction due to business closure
While Meijering is still auctioning voluntarily, there are also many entrepreneurs who are forced to auction due to business closure— either through bankruptcy or because the business cannot be sold. Many companies still operate outdated and costly machinery, which makes expansion or acquisition financially difficult. New investments often require a huge capital injection at the outset.

In addition, the lack of succession in family businesses plays a major role: when an owner retires and there is no successor, the business is often shuttered. The remaining machinery and other assets are then often bought by larger or stronger players, which points to a certain consolidation within the sector.

Pressure on the sector translates into concrete data
This pressure on the sector is also reflected in the data. In the first eight months of 2025, Troostwijk Auctions organized 8.6 percent more auctions due to bankruptcies in the Netherlands than in the same period in 2024. The average number of bids per lot increased by 42 percent, while the value of the average lot offered also rose: +27%. Almost half (40%) of the lots were purchased by foreign companies. These international bidders increase competition at online auctions, which raises the market value and conversion rate of used machinery.

These figures demonstrate that confidence in online auctions continues to grow, thanks to a secure and reliable environment for high-quality B2B transactions. “Whereas in the past it was mainly small parts that were bought and sold, nowadays it is complete, high-quality machines,” says Heikoop. "Online auctions have become a logical step for many entrepreneurs. Not only do they yield a fair price thanks to international bidders, but often the highest price as well. On top of that, machines get a second or third life."

Second life for machines, inside and outside the Netherlands
The supply and demand for used machines is growing as a result, partly because Dutch entrepreneurs are now more likely to buy new machines from China. These are often cheaper and of good quality; with European manufacturers being overtaken in recent years. In the past it used to be possible to trade in an old machine with a Dutch or European supplier, but this is no longer standard practice. Auctions give these machines a second life, which is not only financially attractive but also a sustainable solution: it extends the life of existing machines and prevents the environmental impact of producing new ones.

To foreign buyers, often from countries where environmental regulations and quality requirements are less stringent and investment budgets are smaller, these second-hand machines are attractive. Parts from older models also remain in demand for maintenance on existing machines. For companies that need production capacity quickly, an auction offers immediate access to machines, often within two to three weeks, whereas new equipment takes much longer to arrive.