Energy crisis & sovereignty: implementing the transition to survive

The energy crisis caused by rising electricity, gas and oil prices is having an impact on all sectors of the economy. It is hitting the heavy industry sector, which is by definition energy-intensive, even harder. This poses a problem for the survival of these industries in France.

“If we lose our metal production plants, tomorrow we will be dependent on the rest of the world.

Cyrille Mounier, General Delegate of Aluminium France.

The risks of energy prices reveal the major issue of sovereignty, a subject dear to the By.O Group, for our French and European companies.

Energy crisis: the trap of rising fixed costs

In Les Echos, the Arc company reveals that the share represented by energy in the cost of a glass has risen from 10% to 40%.

An increase in fixed costs that is unsustainable in the long term for energy-intensive industries, and which threatens the survival of our industries:

  • Reduction of volumes to limit production at a loss, in the hope that stocks will be sufficient to absorb demand until prices return to normal
  • Drastic loss of competitiveness vis-à-vis Spanish competitors, who benefit from the derogation obtained from Brussels on European energy prices
  • Diversion of customers to the competition, with the risk of definitively losing the value chain in the long term
  • Risks of definitive closure of factories and the pure and simple disappearance of the French and European industrial fabric

Implementing the transition to survive

Faced with this energy crisis situation, financial aid may be able to help weather the storm… But the only solution to guarantee the long-term survival of our industries is to accelerate their energy and organisational transitions today.

These transformations involve adopting more energy-efficient and environmentally friendly practices, setting up more efficient organisations and processes, and developing healthy and solid relationships with partners and suppliers…

The notion of ecosystem, which has been dear to By.O Group for nearly 20 years as we have accompanied our clients in the development of efficient and sustainable B2B relationships, has never been so meaningful as in this period of crisis, which shows us to what extent when one link is seized up, the whole chain is weakened.