Kostendruk

Kostendruk is a Dutch term describing the pressure on business profitability from upward moving costs of inputs. It arises when input costs rise faster than product prices, squeezing margins, affecting investment and employment decisions. It is a descriptive concept widely used in corporate reporting, media and policy discussions.

Etymology and usage: from kost (cost) and druk (pressure). Not a formal statistic, but a commonly used shorthand for cost-driven inflationary pressure or margin squeeze in various sectors. Distinction from prijsdruk, which emphasizes consumer price increases rather than producer costs.

Drivers: energy and commodity prices; wage growth; logistics and transport costs; taxes, levies and environmental costs; exchange rate movements; regulation and compliance costs; supply chain disruptions. The extent of kostendruk depends on exposure to these factors and pass-through capabilities.

Implications and responses: higher costs lower margins, may lead to higher prices for customers, but firms can respond with productivity gains, process improvements, automation, supplier diversification, longer-term contracts, hedging, or passing costs through selectively. In macro terms, widespread kostendruk can contribute to inflation if firms raise prices broadly; policymakers monitor wage and price dynamics and may pursue energy or tax relief to ease borrowing costs or provide targeted support. Common sectors affected include manufacturing, construction, agriculture and energy-intensive services.