Orgalim Annual Report 2018

ANNUAL
REPORT

2018

Orgalim represents Europe’s technology industries: companies that
innovate at the crossroads of digital and physical technology. Our
industries develop and manufacture the products, systems and services

that enable a prosperous and sustainable future.

Ranging from large globally active corporations to regionally anchored
small and medium-sized enterprises, the companies we represent
directly employ 11 million people across Europe and generate an annual

turnover of around €2,000 billion.

Orgalim commits to champion an EU policy agenda for sustainable
growth; to support the industry in its transformation; and to advance
dialogue between business, policymakers and citizens on the relationship

of technology to society.

ORGALIM REPRESENTS:

Associations Countries National member
associations

European sector Industries:
associations
mechanical engineering;
electrical engineering, electronics

and ICT; metal technology

LEADERSHIP TEAM

4 President’s Message
5 Director General’s Message
7 Governance

EUROPE' S TECHNOLOGY
INDUSTRIES

9 Our Industries in 2018

OUR WORK

13 Industrial Strategy: Orgalim’s
Vision for a Renewed Europe
15 Digital Transformation
17 Internal Market &
Standardisation
20 Energy, Climate &
Environment
23 Trade
24 Legal
25 Research, Development
& Innovation
27 Partnership: Our Services
to Clients
29 Publications
31 Communications

OUR TEAM

33 Orgalim Secretariat Team



OUR MEMBERS
AND PARTNERS

35 Member Associations and Partners



LEADERSHIP Leadership Team 4
TEAM
Tomas Hedenborg
President’s Message Orgalim President / Group CEO, FASTEMS

T ake one look at the innovations emerging across industry vision for a renewed Europe’, Orgalim’s long-term
Europe’s technology industries – from energy to political agenda published ahead of the 2019 European
mobility, healthcare to robotics – and it is clear elections, which calls on the EU to embrace the innovation-
that the companies represented by Orgalim led transformation of industry, enable the global leadership
have a vision for how technology can shape a of its companies, and transform societal challenges into
future that’s good for the EU and its citizens. Is this vision drivers of prosperity. And these are the priorities I have
shared by Europe’s policymakers? been actively promoting as President of Orgalim, most
recently through my work as a member of the European
When I joined Orgalim as President three and a half years Commission's ‘Industry 2030’ High-Level Industrial
ago, the answer was far from clear. Industry was slowly Roundtable.
climbing back up the political agenda, but the policy and With my term as President coming to an end in late 2019,
regulatory approach was fragmented at best. And this at a this will be my last Annual Report message. I would like
time when the digital transformation was accelerating and to close therefore by warmly thanking my colleagues
completely changing the rules of the game. across Orgalim’s member associations, partners and the
secretariat team for their support over the last number
From the Digitising European Industry initiative to the of years. It has been a great honour to represent our
more recent EU industrial policy strategy, however, we have innovative sectors at the highest political level. I look
seen a shift in the conversation. Policymakers increasingly forward to following Orgalim’s continued quest to keep
recognise a truth that Orgalim has long held firm: that the industry at the top of the EU’s political agenda, working for
EU framework has a crucial role to play in maintaining and a framework that helps our companies to shape a future
strengthening a dynamic industrial base here in Europe. that’s good for Europe and its citizens.

But there is still a long way to go. In an increasingly
unpredictable environment, we urgently need real visionary
thinking to unlock the huge potential of the technology
industries to deliver long-term prosperity. Because not only
are these sectors a crucial motor of the European economy:
growth in 2018 again outstripped that of the eurozone as
a whole – reaching 3% for a turnover of over €2,000 billion
– while direct employment stood at over 11 million. Our
companies also make it their business to deliver solutions to
major societal challenges, from climate change to mobility;
from supporting an ageing society to improving quality of
life in our cities.

Put simply, the future of Europe’s technology industries
is inextricably linked to the future wellbeing of European
society. This is the message at the heart of ‘2030: an

PUT SIMPLY, THE FUTURE OF EUROPE’S TECHNOLOGY INDUSTRIES
IS INEXTRICABLY LINKED TO THE FUTURE WELLBEING AND
PROSPERITY OF EUROPEAN SOCIETY.

5 Orgalim Annual Report 2018

Director General’s Malte Lohan
Message Orgalim Director General

W ith parliamentary elections fast greener, healthier and more liveable for all citizens – while
approaching, the EU is at a critical creating new markets and generating economic growth.
juncture and the ‘Future of Europe’ debate
is in full swing. How can Europe inject Capitalising on this potential will require a change in
fresh momentum into its economy and mindset at the highest political level. Rather than starting
industry? How can we address challenges such as climate by asking what Europe can do for industry and piecing
change, demographic shifts or growing inequality? And together a patchwork of policies in response, we need to ask
how can we restore citizens’ faith in the EU as a political what our industries can do for Europe – enabling a holistic
project? approach that puts innovation first across policy-making. By
helping shape a framework that maximises the contribution
Orgalim has been contributing to this conversation with the technology can make to all our lives, this approach will also
launch of ‘2030: an industry vision for a renewed Europe’. help restore faith in the EU as an effective platform to solve
In our vision for the future of Europe, technology-led the challenges Europe faces, ensuring continued public
transformation catalyses industry’s competitiveness, sets support for the integrated European economy and society
us on the road to carbon neutrality and enhances quality of that lie at the heart of our industries’ success.
life for all citizens. How do we get there? With a new kind of
industrial strategy that puts innovation at the heart of the Charting a course for success
EU’s future.
We have spent the past year working to set a course in this
Steps in the right direction direction. Shortly after I took the reins as Orgalim Director
General in January 2018, our members began the intense
Over 18 months since the European Commission put process of reviewing our organisational strategy.
forward its own industrial strategy, what progress has been
made during this last full year of the Juncker Commission? The centrepiece of this work was the strategic roadmap
mentioned above – ‘2030: an industry vision for a renewed
Credit where credit is due, there have been achievements Europe’, finalised in late 2018 and officially launched during
in a number of areas. A positive outcome was reached on EU Industry Days in February 2019. It focuses on three
key Clean Energy files, while the Goods Package shone a strategic imperatives that we see as crucial for Europe’s
welcome spotlight on compliance and enforcement in the success: embrace the innovation-led transformation
Internal Market. We saw forward movement on cornerstone of European industry, enable its global leadership, and
digital issues like cybersecurity and artificial intelligence transform societal challenges into drivers of prosperity.
(AI), and an EU budget proposal that focuses on research These will guide our advocacy work in the months and
and innovation, digitalisation and climate mainstreaming. years ahead.
All developments in line with our priorities – promising not
only to strengthen our industries’ competitiveness but to A second outcome of our strategic review was the decision
help our companies deliver solutions to the most pressing to update our brand identity to reflect the dynamic
issues facing European society.

A vision for the road ahead

Nevertheless, many challenges remain. Global trade
conflicts and increasingly fierce competition for investment;
populism taking hold across Europe and beyond; an EU
Single Market that is coming under threat; the looming
spectre of climate change… the future holds plenty of cause
for concern.

Yet as we outline in our vision for 2030, this can also
be a moment of immense opportunity for Europe. Our
home-grown industries are developing and manufacturing
innovative technologies that promise to make Europe

Leadership Team 6

industries we represent. In November, the General Wåhlberg (CEO, Teknikföretagen) as Vice-Chairman.
Assembly gave the green light for Orgalime to become
‘Orgalim, Europe’s Technology Industries’ and our new A further four members were appointed to the Board,
visual identity and revamped communications channels – and we are looking forward to continued productive
including a new website, www.orgalim.eu – were unveiled in collaboration in 2019 and beyond.
January 2019.
I think we can be very proud of what we have achieved in
We were also delighted to welcome new members to the 2018. The coming 12 months will be critical for Europe
Orgalim family in 2018, as Aqua, CECE and Europacable and for our industries’ long-term success, and I am certain
joined the fold – three European-level associations that our work over the last year has placed Orgalim on a
representing three highly innovative technology sectors. very solid footing to master the challenges ahead. It would
Moreover, in November we thanked our former Chairman not have been possible without the support and active
Peter Bongaerts for his successful term and welcomed involvement of our membership and the dedication of our
Thilo Brodtmann (CEO, VDMA) as Chairman of the Orgalim secretariat team. Together, we are laying the groundwork
General Assembly and Board of Directors, and Klas that will enable our industries to continue shaping a future
that’s good for business, for society and for Europe.

RATHER THAN STARTING BY ASKING WHAT EUROPE CAN DO FOR
INDUSTRY AND PIECING TOGETHER A PATCHWORK OF POLICIES

IN RESPONSE, WE NEED TO ASK WHAT OUR INDUSTRIES CAN
DO FOR EUROPE – ENABLING A HOLISTIC APPROACH THAT PUTS

INNOVATION FIRST ACROSS POLICY-MAKING.

7 Orgalim Annual Report 2018

Governance In November 2018, Thilo Brodtmann (CEO of VDMA) was
elected Chairman of Orgalim, and Klas Wåhlberg (CEO
O rgalim is an international not-for- of Teknikföretagen) Vice-Chairman (effective 1 January
profit association with its legal seat in 2019). Prior to this, Peter Bongaerts (CEO of FME) held the
Brussels, with membership comprising position of Chairman and Thilo Brodtmann of Vice-Chair.
national associations and European
sector associations from the mechanical 2018 HAS BEEN A MILESTONE YEAR
engineering, electrical engineering, AT ORGALIM, AS WE SET OURSELVES
electronics and ICT, and metal technology
industries of European countries (the full list of members is THE MISSION OF CRAFTING OUR
included at the end of this report). VISION FOR THE FUTURE OF OUR
INDUSTRY IN EUROPE. AND THIS IN
Our members drive our advocacy work through a number of TURN WILL SET A SOLID FOUNDATION
governance bodies and policy committees. Senior industry FOR THE FUTURE OF OUR ADVOCACY
leaders representing our organisation engage with decision WORK. AS CHAIRMAN, I WILL BE
makers at the highest political level. At the working level, WORKING CLOSELY WITH THE BOARD,
Orgalim’s hundreds-strong network of experts contributes
input and insights to shape positions on the EU policies OUR DIRECTOR GENERAL AND
and regulations impacting the technology industries. The ORGALIM’S BROADER MEMBERSHIP
secretariat in Brussels coordinates this work and manages TO ENSURE WE BUILD ON THIS AS WE
engagement with the EU institutions. Orgalim is registered ENTER A CRUCIAL PERIOD FOR OUR
in the European Union Transparency Register, ID number
20210641335-88. INDUSTRY AND, INDEED, FOR THE
EU ITSELF.
President

The Orgalim President is a senior company representative,
whose duties include engaging with high-level EU decision
makers on behalf of Orgalim, and contributing to shaping
the association’s strategic agenda. The current Orgalim
President is Tomas Hedenborg, Group CEO of FASTEMS.

Tomas Hedenborg Thilo Brodtmann
Orgalim President / Group CEO, FASTEMS Orgalim Chairman

General Assembly Board of Directors

The General Assembly is the supreme governance body The Board of Directors, composed of association CEOs, is
of Orgalim, with every member represented. The General elected by the General Assembly from representatives of
Assembly elects the Orgalim Chairman and Vice-Chairman, full members of Orgalim. It is responsible for overseeing the
who are also Chair and Vice-Chair of the Board of Directors. management of the association. In 2018, Orgalim elected
Its decisions are binding on all members. In 2018 the four new members to the Board: Benoît Lavigne (FIEEC),
General Assembly met on 12-13 June in Vilnius, Lithuania Adolf Kerbl (FMTI), Darius Lasionis (LINPRA) and Juan
(hosted by Lithuanian member association LINPRA), Ramón Durán (SERCOBE).
and on 13-14 November in Brussels.

Leadership Team 8

Current Board of Directors: Committee (MELC) and Committee of the Electrical and
Electronic Industries (CEEI).
> Thilo Brodtmann (VDMA / Germany) – Chairman
The current Policy Committee Chairs are:
> Klas Wåhlberg (Teknikföretagen / Sweden)
MALC: Benjamin Frugier (FIM)
– Vice-Chairman
MELC: Andrea Orlando (ANIMA)
> Rafael Campos Pereira (AIMMAP / Portugal)
CEEI: Steve Brambley (GAMBICA)
> Juan Ramón Durán (SERCOBE / Spain)
Working Groups
> Benjamin Frugier (FIM / France)
Practical policy work across Orgalim’s horizontal areas of
> Adolf Kerbl (FMTI / Austria) interest is led by working groups. Chaired by a member
representative, these groups are composed of specialists in
> Darius Lasionis (LINPRA / Lithuania) the respective areas from across our membership. They are
supported by a number of task forces on specific issues of
> Benoît Lavigne (FIEEC / France) interest.

> Klaus Mittelbach (ZVEI / Germany) Currently Orgalim’s working groups are:

> Andrea Orlando (ANIMA / Italy) > Economics & Statistics

> Howard Porter (BEAMA / UK) > Energy & Climate

Under the oversight of the Board of Directors, Orgalim’s > Industrial Policy & Digitalisation
agenda is implemented at three levels: policy committees,
working groups and the secretariat. > Legal Affairs

Policy Committees > Orgalim Technical Committee

Orgalim has three policy committees tasked with driving > Resource Efficiency
the association’s strategic policy agenda. With membership
comprising CEOs and policy directors of the national > Research, Development & Innovation
associations, they are constituted to reflect the three
industrial branches represented by Orgalim: Metal Articles > Trade Policy
Liaison Committee (MALC), Mechanical Engineering Liaison

EUROPE' S TECHNOLOGY
INDUSTRIES

Our Industries in 2018 Output in European industry and in the construction sector
grew in 2018, but at a lower rate than in 2017. Investment
O rgalim represents Europe’s technology was also on the rise, but at a lesser pace than previously.
industries: specifically the branches Moreover, the automotive industry, a major client of the
mechanical engineering, electrical technology industries, saw slower growth in the number of
engineering, electronics and ICT, and metal new passenger car and commercial vehicle registrations.
technology. These diverse industries are
home to companies of all sizes, from small and medium- The investment growth in European industry will continue
sized enterprises to large corporations. Together, they form to be positive, following a period of underinvestment
the EU’s largest manufacturing sector and are responsible between 2009-2012 compared to the period before the
for one third of the EU’s manufactured exports. economic crisis of 2008. Since then we have been seeing a
slight upswing in European industrial investment figures.
Economic outlook: modest growth
expected in 2019 Uncertainty surrounding certain risks also had a negative
effect on growth. Many risks are policy driven, and
Orgalim’s economists compile and analyse the latest data these are increasing costs for companies and decreasing
and forecasts of the technology industries twice a year, willingness to take a chance on investment decisions. For
specifically analysing economic trends in metal products, instance, there is concern within the technology industries
mechanical engineering and electrical engineering, that the consensus that free trade is beneficial for all sides
electronics, ICT & instruments (mainly chapters 25 to 28 is diminishing. For export-oriented sectors like ours, this
and 32.5 of the NACE rev.2 business nomenclature), as well could put long-term growth and employment prospects
as the installation and repair services sector (chapter 33 of in danger. Examples of issues that would undermine free
the NACE rev.2 business nomenclature). trade are Brexit, the prospect of a US-China trade war, or
US-EU trade tariffs instead of a US-EU trade agreement.
Based on the available official data, the technology The effects of risks like these still put a serious brake on the
industries’ total turnover value in the EU reached about global and European growth motor.
€2,102 billion in 2017, of which €170 billion was generated
in installation and repair services.* Employment totalled Annual change in output (current
11.15 million people, of whom 1.3 million were working in prices) of Europe’s technology
installation and repair services.
industries (year-on-year growth in %)
Soft landing expected: output up
3.0% in 2018 and set to grow by SECTOR / YEAR 2018 2019
2.0% in 2019
Mechanical engineering +3.5 +2.5
Activity in the industries represented by Orgalim grew by and installation & repair +2.0
5.0% in 2017. During this period the European economy
was close to overheating, with the first signs of slower Electrical engineering, +2.5
growth becoming clear. electronics and ICT

The main reason for this slowdown in 2018 and 2019 was Metal technology +3.5 +1.5
a deceleration in growth in the world in general and in the
EU in particular. GDP growth decreased slightly in most Technology +3.0 +2.0
industrialised countries, as the negative effects of the very industries total
good business cycle situation in 2017 became gradually
visible: very high utilisation rates of production capacity,
lack of technical and digital skills in large parts of the
industry, and last but not least a higher upward pressure
on wages, which had a negative impact on the global
competitive position of our industry.

Europe’s Technology Industries 10

Turnover value Employment

€ billion, approx. 2,208 million, approx. 11.45

+2.0% 2019

2,165 2019 11.37

+3.0% 2018

2,102 2018

+5.0%

2017

1,977 1,997 11.15

+1.3% +1.0% 2017
2015 2016
10.99
10.96 2016

2015

Employment: almost 600,000 new However, most Orgalim member associations report a
jobs created between 2014 and severe lack of skilled workers – although the business
2019, but lack of skilled workers cycle is pointing downwards, meaning overheating in
constrains growth potential labour markets should come to an end. This leads to the
conclusion that in most countries a shortage of skilled
Employment grew rapidly in 2018, by 2%: all in all, the labour is not due to fluctuations in the business cycle, but
number of jobs increased by 220,000. This marked the rather is a structural problem that is evident even when
fifth consecutive year of rising employment in Europe’s labour demand is shrinking. Growth in 2018 could therefore
technology industries: the growth rate stood at 1.2% in have been higher and unemployment much lower if labour
2017, 0.3% in 2016, 0.7% in 2015, and 0.3% in 2014. Our markets had been able to supply enough skilled workers.
economists expect this trend to continue with an estimated
rise of 0.7% in 2019. In some parts of the technology
industries, notably the metal technology industry and
mechanical engineering, the increase could even be close
to 1.0%.

Aggregating the employment figures, Europe’s technology
industries will have created almost 600,000 jobs in the
period 2014-2019.

*Please note that all past figures given here are based on data
available at the time of estimation; all future data are forecasts
based on currently available data.

11 Orgalim Annual Report 2018

Annual change in employment in Mechanical engineering is benefitting from the recovery of
Europe’s technology industries European industry in general since early 2013, as European
industrial output and investment figures are strongly rising
(year-on-year growth in %) following an enormous investment gap between 2009 and
2012.
SECTOR / YEAR 2018 2019
Although demand in this industry remains stable,
Mechanical engineering 2.3 0.8 companies fear that growing protectionism in world
0.3 markets could harm export potential in 2019. The modest
Electrical engineering, 1.6 positive forecasts for 2019 can be maintained if no
electronics and ICT 0.9 additional export tariffs are imposed due to trade conflicts
between countries.
Metal technology 2.1
Technological trends such as digital transformation
Technology 2.0 0.7 (artificial intelligence, big data, IoT), climate protection or
industries total energy systems transformation will bolster growth this year
and in the years to come.
Mechanical engineering
Investment in further automation is necessary while there
European mechanical engineering accounted for annual is a shortage of skilled labour and growing labour costs not
turnover of around €720 billion in 2017. Employment is only in the mechanical engineering sector itself but also in
estimated at 3.0 million people. customer industries.

In 2018 and 2019, slightly above average growth in turnover Despite lower growth rates in China, the ‘Made in China
is again expected (3.5% in 2018 and 2.5% in 2019), making 2025’ initiative will provide further growth opportunities for
mechanical engineering the strongest growth sector in the European mechanical engineering companies.
technology industries.
However on the whole, the downward risks are much bigger
that the upward opportunities.

Electrical engineering, electronics
and ICT

The electrical engineering, electronics, ICT and instrument
industries employ more than 3.1 million people (including
medical and dental industries), accounting for an annual
turnover in 2017 of around €700 billion.

EUROPE’S TECHNOLOGY INDUSTRIES

The technology industries represented by Orgalim cover charging infrastructures or building systems, to small
three main branches: mechanical engineering, electrical electronic devices such as medical monitoring equipment
engineering and electronics, and metal technology. or wireless smart home appliances, to micro and nano
technologies. Digitalisation and growing use of data are
Mechanical engineering: Companies in this industry enabling new offerings in areas like energy and resource
design and manufacture machinery and other mechanical efficiency, autonomous driving, electric mobility, and
systems – for everything from factory equipment, recycling e-health.
systems, logistics and materials handling to construction
equipment and vehicle components. Mechanical Metal technology: These companies play a crucial role
engineering firms have spearheaded the integration of as the foundation of the production chain that leads to
digital technology and data in their systems, automating high-tech manufacturing – whether by processing metal
processes and enabling connectivity across the value chain. for downstream use, producing specific metal parts or
products, or providing services such as surface treatment.
Electrical engineering, electronics and ICT: These In this industry, technological innovation and digitalisation
industries design and produce everything from large-scale are boosting efficiency in production and resource use.
electrical systems like power grid components, e-vehicle

Europe’s Technology Industries 12

Steady growth is expected in this sector of 2.5% for 2018 machinery and automobile.
and 2.0% in 2019. This follows tremendous growth of 5.5%
in 2017. In 2018 and 2019, this sector is expected to grow at almost
the same pace as the average of the European technology
Like mechanical engineering, this industry also stands to industries: 3.5% in 2018 and 1.5% in 2019. It is benefitting
benefit from the digital transformation and the evolution from the recovery in the mechanical engineering and
towards Industry 4.0 across the globe. Robotisation and construction industries and from spectacular growth figures
automation projects are being undertaken in all regions in automotive in recent years.
and all sectors. Furthermore, this industry offers solutions
to societal challenges in areas like sustainable energy, However, major concerns arise again from policy-driven
mobility, security and an ageing population. market disruptions. In the automotive sector, additional
restrictions on diesel engines planned in many countries are
Metal technology leading customers to postpone purchase decisions. Growing
protectionism in world markets – especially the US tariffs
Turnover in the fabricated metals and metalworking on cars and car-parts – could harm the export potential of
industry was estimated at around €512 billion in 2017. In the fabricated metals and metalworking industry in 2019.
terms of employment this is the largest branch of Europe’s Moreover, a decline in car production in Europe is feared for
technology industries, employing 3.75 million. To a large 2019. Finally, a shortage of certificates in emissions trading
extent, this sector produces inputs and products used has already led to increased energy costs that impact the
in the construction industry and other sectors such as metal technology sector.

MECHANICAL 745 2018Turnover
ENGINEERING € billion, approx.

3.07 2018Employment
million

3.5% 2018 Growth

METAL 530 2018Turnover
TECHNOLOGY € billion, approx.

ELECTRICAL 3.83 2018Employment
ENGINEERING, million
ELECTRONICS
AND ICT 3.5% 2018 Growth

717 2018Turnover
€ billion, approx.

3.15 2018Employment
million

2.5% 2018 Growth

OUR WORK

Industrial Strategy:
Orgalim’s Vision for
a Renewed Europe

O rgalim has long been a leading voice in
calling for a progressive, forward-looking
industrial strategy at EU level. Ahead of a
decisive year with European Parliament

elections on the horizon, 2018 was a time machinery, from robotics to smart energy grids – innovative
tech will drive the solutions to the challenges faced by our
of intense reflection among our members about the role planet and people.

industry can and should play in shaping a future that’s Renew: a new kind of industrial
strategy
good for Europe. The outcome of this process was ‘2030: an
To make this vision reality, Europe must put innovation
industry vision for a renewed Europe’, a long-term political at the heart of the EU’s future, place globalisation and
technology at the service of all of Europe’s citizens, and turn
agenda putting forward high-level recommendations to EU our historic strengths and core values into future drivers of
prosperity.
policymakers to help us make this a reality. Approved by the
Every policy area will have a role to play. In particular, we
Orgalim General Assembly in November 2018, this agenda are advocating action around three overarching strategic
imperatives at EU level:
will also serve as a roadmap guiding our advocacy work
EMBRACE INNOVATION-LED
across policy areas in the years ahead. TRANSFORMATION

Our vision for 2030 Digitalisation and data are fuelling the innovation-led
transformation not only of industry but of the EU’s
We are convinced a bold EU-level strategy is needed to economy and society as a whole. If we can embrace this
strengthen European industry’s competitiveness and change, Europe’s technology companies can create new
enable technology companies to deliver solutions to business models, new jobs and new products and services.
societal challenges. This must begin with an ambitious
vision of the future. We envision a Europe in 2030 where
the EU is leading the global response to climate change,
paving the way to a post-carbon age. Technology-led
transformation is breathing new life into the economy. And
progress in areas from medical tech to electric mobility to
smart buildings is enhancing quality of life across the board.

Europe’s technology industries will play a key role in
shaping this vision of the future: from sensors to advanced

INDUSTRY DAYS 2018

The second edition of EU Industry Days
in February saw Orgalim host a session
‘Digital meets Energy Union meets Circular
Economy: what’s in it for Europeans?’ –
bringing together speakers from industry,
policy and civil society to discuss how Europe
can leverage its strong digitally enabled
technology industries to lead the global race
towards the irreversible digital, energy and
circular economy transitions, extending the
benefits of innovation to all.

Action areas: Our Work 14

Innovation in new tech like AI | Cybersecurity | EU data HIGH-LEVEL
framework | Communication networks e.g. 5G ‘INDUSTRY 2030’ ROUNDTABLE

ENABLE EUROPEAN INDUSTRY’S GLOBAL Established by the European Commission in
LEADERSHIP February 2018 and chaired by Commission
Vice-President Katainen and Commissioner
EU policy should enable Europe’s industries to take Bieńkowska, the High-Level Industry Roundtable
advantage of new opportunities and strengthen their (HLIR) ‘Industry 2030’ is tasked with advising the
competitiveness globally, by defining the fundamental Commission on industrial strategy implementation
objectives we want to achieve and provide the framework and priority-setting. Orgalim President Tomas
for industry-led solutions to help deliver these. Hedenborg is one of 20 industry leaders and other
stakeholders contributing to the HLIR. At meetings
Action areas: held throughout 2018, the group has been
preparing a report (set for publication summer
Trade | Investment and R&I | Internal Market 2019) that will address industry’s vision for the
| Agile regulation future, trends and drivers of success.

TRANSFORM SOCIETAL CHALLENGES INTO PRIORITIES FOR 2019
DRIVERS OF GROWTH
> Promote ‘2030: an industry vision for a
From the clean energy transition and resource efficiency renewed Europe’ widely ahead of European
to the future of mobility, the EU will deploy new policies to elections in May and appointment of new
address the major societal challenges of our time. We can College of Commissioners in the autumn
transform these challenges into drivers of growth with a > Proactively shape the EU’s future industrial
framework that enables Europe’s technology industries to policy agenda, particularly via President Tomas
deliver solutions – boosting prosperity in the process. Hedenborg’s participation in the High-Level
Industrial Roundtable, with report due to be
Action areas: published in summer 2019

Low-carbon transition | Resource efficiency | Mobility and
buildings | Skills

15 Orgalim Annual Report 2018

Digital Key actions:
Transformation
> Actively promoted Orgalim’s
I f our vision for the Europe of 2030 is to become a priorities in meetings with key
reality, it will be essential for the EU to embrace stakeholders during European Parliament and
the innovation-led transformation of industry. Council negotiations
Digitalisation and the data economy are at the very
heart of this, with Europe’s unique strengths lying > Presented our recommendations on the Cybersecurity
in the fusion of digital and physical technology. While Act at ENISA’s first stakeholder forum in February 2018
recent years have seen progress, action is still needed
across key policy areas to empower firms of all sizes and > Co-organised roundtable event `European Cybersecurity
from all sectors to seize the opportunities on offer – and Act: for a cybersafe IoT’ at European Parliament with the
to strengthen societal acceptance of digital innovation. In European Forum for Manufacturing (EFM)
addition to the high-level engagement of Orgalim President
Tomas Hedenborg in platforms such as the Digitising Artificial intelligence (AI)
European Industry Stakeholder Forum, our advocacy work
centred on the following areas in 2018: As outlined in our position paper of April 2018, Orgalim is
convinced that AI will be a central pillar of Europe’s future
Cybersecurity competitiveness and its ability to address critical societal
challenges. In our engagement with policymakers throughout
With robust cybersecurity vital for the success of the the year, we foregrounded five key recommendations:
digital transformation, Orgalim advocates a European
framework that can enable resilient, flexible and market- > Establish clear definitions of AI that reflect current and
based cybersecurity solutions. In 2018 our work revolved foreseeable realities
around the Cybersecurity Act, promoting the following
recommendations as outlined in our February > Promote investment in AI in the EU as a matter of urgency
position paper:
> Do not rush into enacting new legislation or revising the
> Establish cybersecurity certification schemes that existing framework based on perceived rather than
are market-driven and provide for self-declaration actual risks
of conformity, facilitating consistency with the New
Legislative Framework (NLF) > Create the pre-conditions for a meaningful debate on ethical
considerations around AI
> Strengthen the mandate of the European cybersecurity
agency ENISA > Demonstrate and publicise the economic and societal
benefits of AI
> Put in place a structured, transparent and inclusive
process for industry involvement in elaborating candidate Key actions:
schemes
> Active participation in the High-Level Expert Group
> Ensure European cybersecurity standards take into (HLEG) on AI, tasked by the Commission with drafting
account new and existing international standards ethics guidelines and making policy and investment
recommendations

Our Work 16

> Promoted debate with MEPs at June’s roundtable event PRIORITIES FOR 2019
‘Shaping a future that benefits society: AI and data in
European technology industries’, co-organised with EFM > Cybersecurity: following the adoption of the
Cybersecurity Act by the European Parliament
> Created network of AI experts from Orgalim members and Council, Orgalim has launched a reflection
and companies to support our policy work, including our on potential gaps in cybersecurity legislation to
contribution to the HLEG identify whether a complementary approach
to certification may be necessary through EU
> Contributed to discussions with the Commission legislation under the NLF for products
on potential Machinery Directive review in light of AI
integration in industrial equipment (more detail in the > AI: continue our contribution to the HLEG on
‘Internal Market & Standardisation’ chapter of this report) AI, and produce report on Orgalim’s specific
approach to industrial AI
Data economy
> Data economy: monitor and analyse adopted
Data is the fuel powering the digital transformation of and upcoming EU legislation, in line with our
industry and society – making a future-proof framework recommendations for a coherent, future-proof
essential to unlock the full potential of digital innovation. EU data framework
Throughout 2018 we continued to monitor the
development of the EU framework covering personal and
non-personal, research and public data, and the related
area of online platforms. Through engagements such as our
June event on AI and data in the European Parliament (see
above), we promoted the following core principles:

> Free flow of data: we advocate an innovation-friendly
framework for the flow of non-personal data within the EU

> Freedom of contract: we believe freedom of contract
should be the basis of business-to-business relations
concerning data exchange and flow of non-personal
data overall – additional regulation would create legal
uncertainty and administrative burden for companies

> Open data: we oppose mandatory opening up of company
data in EU research projects, as companies must retain the
right to protect their intellectual property and know-how in
the digital world

17 Orgalim Annual Report 2018

Internal Market & COMPLIANCE AND ENFORCEMENT
Standardisation LEGISLATION

F or decades, the Internal Market has provided An efficient system of market surveillance is vital
the technology companies we represent with to maintain a level playing field in the Internal
a uniquely stable framework to facilitate the Market – and in 2018 this formed a central focus
free circulation of products throughout the EU of our advocacy work, as negotiations proceeded
– allowing them to grow their business across in the European Parliament and Council on the
Europe and gain the scale to compete on the world stage. In now adopted ‘Regulation on Market Surveillance
order to enable our industry’s long-term global leadership, and Compliance of Products’. We engaged
therefore, we are calling on policymakers to recommit to closely with policymakers throughout the
the essence of the Internal Market: a level playing field for process, making the following recommendations
safe products and services, governed by business-friendly as put forward in a series of position papers:
legislation that is resilient to technological and economic
change and effectively enforced by market surveillance > Facilitate smarter, more effective market
authorities. To this end our work in 2018 focused on the surveillance that enables authorities to
following priorities: cooperate with industry associations, without
overburdening economic operators as regards
Compliance, standards and demonstrating compliance
enforcement
> Strengthen the hand of national market
Orgalim believes that the rules of the Internal Market surveillance authorities to act against
should be based on trust, transparency, inclusiveness deliberately non-compliant operators – in order
and confidence. Our work on compliance, standards and to protect consumers and end-users, while
enforcement focuses on promoting improvements to the safeguarding the investment of legitimate
EU’s New Legislative Framework (NLF), the cornerstone of businesses in compliance procedures
Internal Market legislation since 2008.
STANDARDISATION POLICY

One of Orgalim’s key priorities for the Internal
Market is to strengthen the ‘New Approach’ to
technical harmonisation and standards, which
recognises that standards are a voluntary,

Our Work 18

end-user-driven compliance tool – giving flexibility to aspects of improving and clarifying implementation
producers while reducing administrative burden. In 2018 guidelines. In particular we focused on the following areas:
our concerns grew that the development of harmonised
standards and the timely publication of their reference in MACHINERY DIRECTIVE (MD)
the Official Journal of the EU (OJEU) is being disrupted due
to the Commission’s legalistic reassessment of its role in Status: The Commission’s evaluation report on the MD
implementing the Regulation on European Standardisation. acknowledged that the Directive is fit for purpose, while
raising questions on machinery featuring embedded
Key actions: artificial intelligence (AI). A new impact assessment is set
to further analyse the existing legal framework against the
> Continued our work to enhance cooperation between background of technological evolution.
policymakers and industry stakeholders, with the aim of
upholding a flexible and effective approach at EU level that Key actions:
can accelerate the making available of quality ‘harmonised’
standards > Took a leading role in advocating towards the EU
institutions to make the case that the MD does not need
> Worked throughout 2018 on an advocacy strategy (to be to be revised, coordinating our activities with other
launched this year) to renew the New Approach and tackle organisations representing the technology industries
the Commission’s increasingly bureaucratic procedure for
examining harmonised standards before publishing their > Prepared a comprehensive overview of the kinds of
reference in the OJEU AI used in our industries and how the MD adequately
addresses all issues linked with machines embedding AI
Product safety legislation functions (published as a position paper in February 2019)

With technology evolving at an increasingly rapid pace, a GAS APPLIANCES REGULATION (GAR)
stable and predictable regulatory framework is essential
to attract investment and support innovation – while Status: This Regulation is now fully applicable in all EU
ensuring products placed on the Internal Market are safe Member States as of 21 April 2018.
and comply with relevant EU legislation. In 2018 we focused
on maintaining this regulatory stability across the spectrum Key actions:
of product safety legislation relevant for our industry, while
continuing our dialogue with the Commission on practical > Monitored application issues among our members to
identify any potential need for action

PRESSURE EQUIPMENT DIRECTIVE (PED)

/ SIMPLE PRESSURE VESSELS DIRECTIVE

(SPVD)

Status: Following the alignment of these two Directives to
the NLF, the Commission has now finalised its guidelines on
the PED, while those on the SPVD are still being prepared.

Key actions:

> Active contribution to the Commission guidelines
following the NLF alignment, participating in all relevant
meetings and tabling suggestions on interpretation issues

> Continued in our role as the main industry representative
in Commission meetings open to all stakeholders

19 Orgalim Annual Report 2018

LOW VOLTAGE DIRECTIVE (LVD) > Issued a position paper outlining our recommendations
for shaping the future of outdoor noise legislation
Status: The Commission undertook an evaluation to
assess whether the Directive continues to achieve its safety CONSTRUCTION PRODUCTS REGULATION
objectives, particularly in the age of artificial intelligence (CPR)
and Internet of Things technologies. Status: The Commission published its final reports on the
CPR evaluation and impact assessment, concluding that
Key actions: stakeholders do not request a revision to the Regulation
but rather clarification on definitions and on some articles
> Responded to the survey with the message that the LVD through ‘soft law’ guidance.
remains fit for purpose and does not need to be revised Key actions:
> Contribution to the public consultation
ELECTROMAGNETIC COMPATIBILITY
DIRECTIVE (EMCD) DIRECTIVE ON EQUIPMENT FOR
POTENTIALLY EXPLOSIVE ATMOSPHERES
Status: The Commission published a guide to the (ATEX)
application of the EMCD in spring 2018. Status: The ATEX Directive was aligned to the NLF in 2016.
Key actions:
Key actions: > Preparation of a proposal to the Commission to have
e-labelling for ATEX products, which could be implemented
> Provided input on improvements to the Commission through the ATEX guidelines
guide
PRIORITIES FOR 2019
RADIO EQUIPMENT DIRECTIVE (RED)
> Push for a renewal of the New Legislative
Status: Commission guidelines on the RED published Framework (NLF) with the launch of a new
in June 2018 put the Directive increasingly on the radar advocacy approach
of manufacturers, with the rise of interconnectivity and > Continue promoting the importance of a stable
digitalisation in the technology industries. regulatory framework in a time of technological
evolution
Key actions: > Call for rapid adoption of the strengthened
regulatory framework on market surveillance and
> Ongoing contributions to the Commission’s RED compliance
application guide and interpretation documents on specific
issues

> Monitoring Commission proposals on Delegated Acts
under RED Article 3.3, notably on reconfigurable radio
systems and questions of privacy as regards Internet-
connected products

OUTDOOR NOISE DIRECTIVE (OND)

Status: The Commission published the final report on the
OND evaluation, recommending to update the Directive
– a move we welcome, as we believe the OND needs to be
workable for all sectors.

Key actions:

> Contributed to the public consultation and issued core
policy statements in a position paper

Our Work 20

Energy, Climate Key actions:
& Environment
> Outlined how to turn climate challenges into
A s Europe’s society faces a range of challenges, opportunities in our position paper on the Commission’s
the technology industries we represent offer 2050 long-term strategy for greenhouse gas emissions
many solutions for a sustainable, resource- reduction (‘Clean Planet For All’ Communication);
and energy-efficient, climate-neutral and responded to the public consultation on future climate and
increasingly circular economy. In the energy energy policy
sphere, European tech is fuelling the ‘3-D’ transformation of
our energy system, driven by digitalisation, decarbonisation > Participation in Talanoa stakeholder debates for COP 24:
and decentralisation. And technology will also hold the key featured on the UN website and issued position papers on
to successfully implementing the Paris Climate Agreement our industries’ contribution to the Talanoa Dialogue, and
and achieving the UN Sustainable Development Goals the need to step up global climate action together and take
(SDGs) across industries. In the environment arena, building the Clean Energy Package to the next level
a competitive market for circularity will allow ever more
efficient, digitally enabled products and services to optimise > Provided key messages on the EU Emissions Trading
how resources are used throughout the economy. Across System (ETS) Innovation Fund
these areas, our work in 2018 pursued the aim of a holistic,
forward-looking EU policy framework to help transform Sustainable energy systems
Europe’s challenges into drivers of prosperity.
As the global energy landscape undergoes the ‘3D’ change,
Low-carbon transition the EU is enacting the Clean Energy for All Europeans
package – while increasingly cost-efficient technologies
Our industries offer a wide range of solutions that can enable consumers to actively engage in the energy market.
help achieve the Paris goals by enabling decarbonisation We believe Europe must urgently adapt to these new
throughout the economy – giving the EU an opportunity realities, which is why our work throughout 2018 aimed
to spearhead the Paris implementation process while to support a successful energy transition by promoting
promoting European technology leadership. Orgalim’s ‘energy efficiency first’, advocating for a well-functioning
advocacy work in 2018 centred around the EU Clean Planet integrated and flexible energy market, more renewables
for All strategy and the UN Framework Convention on and smart infrastructures, and making the case for a robust
Climate Change (UNFCCC) process. governance system.

Key actions:

> As a Strategic Partner of EU Sustainable
Energy Week 2018, led a policy session on

21 Orgalim Annual Report 2018

Clean Energy 4.0 together with the Council of European alternative fuels infrastructure across the EU will
Energy Regulators, CERRE and APPLIA, welcoming stimulate growth, jobs and technology adoption. We
keynote speaker from the International Energy Agency favour a technology-neutral approach to deploying these
infrastructures.
> Put forward recommendations for finalising key Clean
Energy files, and called for rapid action on the package in Key actions:
letters to Commission President Juncker and the Heads of
State and Energy Ministers > Mobility Packages: Monitored the legislative process on
e-mobility, autonomous driving and connected intelligent
> Pushed for finalisation of the Clean Energy files in 2018 transport systems; attended the TEN-T Days in Ljubljana
in an open letter to the Austrian Presidency and Energy
Ministers > Participated in the Commission’s Sustainable Transport
Forum and expert groups; issued recommendations
> Active participation in the Citizens’ Energy Forum and on accelerating the deployment of alternative fuels
Electricity Regulatory Forum infrastructure in Europe and communicated our position to
the European Parliament
Smart infrastructures
Environmental sustainability
Our work in this area promotes the message that
modern, smart, efficient and connected infrastructures Throughout 2018, our work around environmental
are the backbone of the low-carbon, energy and digital sustainability has advocated a holistic, forward-
transformation of our economy and society – making looking framework for sustainable resource use and
them key to successfully implementing the Clean Energy implementation of the UN SDGs, promoting the positive
Package, the Energy Union, the EU’s 2030 Energy and contribution of our industries to resolving societal
Climate Framework and the Paris Agreement. challenges and driving growth.

Key actions: Key actions:

> Active member of the EU Smart Grids Task Force > Promoted our views in position papers on the EU Plastics
Strategy, on Product and Organisational Environment
> Regular attendance of Energy Infrastructure Forum and Footprint Methodologies (PEF/OEF) and on the Roadmap
member of European Stakeholder Committees on Grid for EU Product Policy
Connection and System Operation
> Responded to a Commission stakeholder survey on
> Responded to public consultation on Multiannual the interface between chemicals, products and waste
Financial Framework in area of strategic infrastructure legislation and to the public consultation on potential PEF/
OEF policy applications
Sustainable mobility
> Addressed letter to the President of the EU Environment
We are convinced that a sustainable range of transport Council on the plastics strategy and the interface of
solutions and the creation and expansion of interoperable, chemicals, waste and product policy

> Commented on the Council Conclusions on the Circular
Economy Package of January 2018

> Steering member of European Policy Centre (EPC) project
on digitalisation and the circular economy

> Speaker at annual Circular Economy Conference on
digitally enabled solutions for the circular economy

> Active contribution to Commission’s Technical Expert
Group on Sustainable Finance (TEG) and draft European
Parliament report on the Sustainable Finance Taxonomy

Across the individual strands of waste policy, substances
policy and sustainable products, our aim is to shape a
framework that is as harmonised, workable and enforceable
as possible.

Our Work 22

Waste policy > Maintained overview table on the status of RoHS
exemptions
We believe that an effective waste policy is key for the
circular economy to develop bottom-up. Our work in 2018 > Joined coordination group of ECHA’s Exchange Network
centred on the EU Circular Economy Waste Package and on Exposure Scenarios (ENES)
on the sector-specific Waste Electrical and Electronic
Equipment (WEEE) Directive. > Commented on the draft ECHA Guidance on Nickel
Restriction under REACH
Key actions:
> Participated in key meetings of Commission expert group
> Secured the existing sector-specific WEEE Directive on chemical legislation (CARACAL)
financing provisions in the Waste Framework Directive
> Involvement in new industry alliance working on
> Published a guide to understanding the newly introduced recommendations for a global inter-sector standard for
‘open scope’ and obligations of the WEEE Directive reporting substances in articles in the value chain

> Issued a high-level joint industry letter as the Waste Sustainable products
Package was being finalised to alert to the inherent limits of
the new database We believe that clear and consistent policy objectives
combined with incentives should be at the core of the EU
> Responded to the public consultation on the revision of product policy framework. 2018 saw the development of
the Waste Shipment Regulation further ecodesign measures, while the new energy labelling
database (EPREL) entered into force.
Substance policy
Key actions:
Our work on substance policy in 2018 focused on the
Regulation on Registration, Evaluation, Authorisation > Commented in a position paper on European Parliament
and Restriction of Chemicals (REACH) and the Directive own-initiative report on ecodesign implementation
on the Restriction of Hazardous Substances (RoHS), with
implementation issues and preparatory review work > Maintained overview table on the implementation status
ranking high on the agenda. of the Ecodesign Directive

Key actions: > Active member of the Ecodesign and Energy Labelling
Consultation Forum and related stakeholder meetings
> Published information note on REACH Article 33 on
communication obligations on substances in articles > Presented our views on how to create a market for
circularity in position papers on the Commission Roadmap
> Orgalim recommendations for consistency with the RoHS for EU Product Policy and PEF/OEF
Directive taken into account in the Commission Regulation
amending Annex XVII to REACH PRIORITIES FOR 2019

> Commented on revising the RoHS substance > Low-carbon transition: Stand up for setting
methodology and called for a common RoHS-REACH the standard in the global low-carbon and
methodology energy transition required to implement the
Paris Agreement
> Responded to Commission consultation on RoHS
evaluation roadmap > Resource efficiency: Push for systemic
change to promote the sustainable use of
resources and to ‘do more with less’

> Mobility and buildings: Promote creating
conditions for sustainable and connected
mobility and buildings that are equitable,
efficient, safe and climate responsive

23 Orgalim Annual Report 2018

Trade

A central pillar of our mission to enable EU-MERCOSUR
European industry’s long-term global
leadership is the pursuit of an ambitious Negotiations between the EU and the South American
trade agenda. The technology companies trading bloc gained momentum in 2018.
we represent are embedded in global value
chains and strongly export-oriented – Key actions:
producing one third of all European manufactured exports.
To ensure their continued success, we need the EU to stand > Continued our calls for an ambitious agreement to
up for open, rules-based cross-border trade and improve overcome tariff and non-tariff barriers to trade
access to international markets for European firms.
EU-JAPAN
In 2018 our advocacy work in the trade arena focused on the
following key issues: The EU-Japan Economic Partnership Agreement was signed
in July 2018 – a positive sign that trade can deliver win-win
Trade negotiations solutions in uncertain times.

Orgalim has been a steadfast supporter of the European Key actions:
Commission’s efforts to advance a trade liberalisation
agenda. In 2018 we were nominated as a member of the > Welcomed the agreement in a press statement,
Commission’s expert group on EU trade agreements, where highlighting the removal of non-tariff barriers and easier
we are sharing the insights and priorities of our industries. access to public procurement as significant achievements

The trade negotiations high on our radar in 2018 included: Horizontal trade issues

EU-US TRADE DEFENCE INSTRUMENTS

Following months of uncertainty due to the imposition of While Orgalim supports a constructive and well-balanced
US tariffs on steel and aluminium, EU-US trade relations use of trade defence instruments, we caution against the
picked up somewhat in the second half of 2018.

Key actions:

> Issued position paper expressing concern at the US
decision to introduce tariffs in early 2018

> Continued to be vocal in support of progress in EU-US
trade negotiations, publishing a position paper emphasising
the need to address both tariff and non-tariff barriers

Our Work 24

hasty use of rebalancing and safeguard measures that could Key actions:
have potentially counterproductive effects on the global > Responded to the Commission’s proposal to screen
supply chains of Europe’s technology industries. foreign direct investment at European level with a position
paper restating the benefits of an open investment
Key actions: environment and questioning the need for this second layer
of screening
> Joined forces with other organisations representing steel
users to vocally oppose the Commission’s decision to adopt PRIORITIES FOR 2019
safeguard measures on steel in response to US import
tariffs – issuing a joint letter to the Commission in June and > Advocate for fresh momentum in seeking an
a further joint statement in December ambitious EU-US trade agreement that will address
both tariff and non-tariff barriers
SCREENING OF FOREIGN DIRECT > Continue to fight against protectionism and stand
up for a global rules-based free trade system
INVESTMENT

Given the positive impact of investment on growth and
employment, Orgalim firmly believes the European market
needs to remain open to foreign direct investment at
EU level.

Legal EU data framework

O rgalim’s work on general legal issues at EU The digital transformation of European industry – and
level centres on topics affecting business- of our economy and society more broadly – has shone a
to-business relations in the technology spotlight on the legal framework governing the capture,
industries – from the framework around use and flow of data. Orgalim has been actively monitoring
liability and redress, to contract law and and contributing to all major policy debates in this
protection of intellectual property rights (IPR). We aim to sphere, with key actions from 2018 covered in the ‘Digital
ensure a stable regulatory environment for the companies Transformation’ chapter of this report.
we represent, one that will continue to enable our industry
to grow, innovate and retain its competitiveness. In 2018,
our advocacy activities focused on the following areas:

25 Orgalim Annual Report 2018

Product Liability Directive Research, Development
& Innovation
A stable liability regime at EU level is crucial to provide
companies with legal certainty. For the technology I nnovation has always been at the heart of Europe’s
producers we represent, the core element of the European technology industries. Applied industrial research,
liability framework is the Product Liability Directive. development and innovation (R&D&I) has played
Following its positive evaluation of the Directive, the a major role in helping European firms retain a
European Commission created an expert group in 2018 competitive edge on the world stage. This is why
to draft guidelines on the legislation with regard to new Orgalim’s work in this area focuses on ensuring that EU
technologies. R&D&I programmes such as Horizon Europe prioritise
funding for applied industrial research and strengthen
Key actions: collaboration between academia, research and technology
organisations and industry – enabling EU industry’s global
> Contributed to the Product Liability Expert Group, leadership while accelerating development of cutting-edge
underlining our key message that we do not see a need to tech solutions to the challenges Europe faces.
revise the Directive, as its technology-neutral provisions
have created legal certainty while enabling technological With the current EU Framework Programme period
development over the years for R&D&I drawing to a close, our efforts in 2018 were
concentrated on the proposal and negotiations around the
Business-to-consumer contract for next programme: Horizon Europe.
the sale of goods
Horizon Europe
When it comes to business-to-consumer contracts, Orgalim
believes that adequate legislation is already in place to The Commission put forward its initial Horizon Europe
provide robust protection to consumers. So we question the proposal in June. Both prior to this and since kick-off of
need for any new regulatory measures that would apply in negotiations in the European Parliament and Council, we
contexts such as the sale of goods. have been vocal in promoting the priorities of our industries,
emphasising how funding for applied industrial research
Key actions: can do much to underpin the broader goals of boosting
employment and economic prosperity.
> Following the Commission’s proposal for a Directive on
online and offline business-to-consumer contracts, we In particular, we are advocating the following
issued a position paper questioning the need for further recommendations for Horizon Europe:
legislation
> Retain the focus on collaborative industrial research,
Collective redress allocating funding to topics of high relevance to industry
that will enable development of effective solutions
The technology companies we represent are committed
to meeting the highest standards of product quality and > Increase the overall budget, with particular attention paid
safety. With an effective legal framework in place at to the ‘industry and digital’ cluster
national level, we do not see the need for additional redress
mechanisms at EU level. > Continue supporting public-private partnerships such as
Factories of the Future
Key actions:

> Responded to Commission proposal for a Directive on
representative actions for the protection of the collective
interests of consumers with a position paper calling on the
European institutions to avoid adopting a Directive that
will have a major impact on the legislative frameworks of
the Member States and that could create uncertainty for
European companies – in particular small and medium-sized
enterprises

PRIORITIES FOR 2019

> Work towards a balanced framework at EU level for
the exchange of non-personal data

> Advocate for a balanced liability regime for
all products from our industries, including new
technologies such as artificial intelligence and the
Internet of Things (IoT)

Our Work 26

> Maintain the ‘excellence’ criterion for evaluating enhance the competitiveness of the technology industries
proposals
> Published position paper on Horizon Europe making
> Uphold the principle of data confidentiality 16 key recommendations – promoted widely among
Members of the European Parliament and Member State
Key actions: representatives

> Issued a Joint Declaration between industry and research > Contributed to online Commission consultation: ‘MFF: 9th
and technology organisations on boosting Europe’s Framework Programme for Research and Innovation and
competitiveness as a key priority for future EU R&D&I Rules for Participation and Dissemination’
funding
> Roundtable and dinner-debate at the European
> Responded to Commission public consultation on EU Parliament, co-organised with Teknikföretagen and the
funds, insisting that the EU’s focus on implementing its European Forum for Manufacturing (EFM)
industrial strategy should be clearly reflected in the Horizon
Europe proposal through support for R&D&I in industrial > Contribution of Director General Malte Lohan to
and digital technologies European Association of Research and Technology
Organisations (EARTO) event on Horizon Europe
> Co-hosted lunch debate with Orgalim member
Teknikföretagen to reflect on how Horizon Europe can

PRIORITIES FOR 2019

> Continue promoting industrial collaborative
research and the crucial importance of R&D&I for
the technology industries – especially as regards the
‘industry and digital’ cluster of Horizon Europe

> Advocate for the central role of the MFF in the
implementation of a progressive, forward-looking
industrial strategy that supports sustainable growth,
innovation and investment in Europe

27 Orgalim Annual Report 2018

Partnership:
Our Services to Clients

O rgalim’s Partnership department provides inclusion of ventilation in an article related to inspections in
services to 20 client associations across the revised Energy Performance of Buildings Directive.
a diverse spectrum of technology sectors.
A dedicated multidisciplinary team of > Regarding the Clean Energy for all Europeans Package,
advisers delivers a tailored offering ESMIG directly contributed to several articles that grant
ranging from monitoring to advocacy, to association more rights and easier procedures for energy consumers,
management,strategy and support. such as the right to switch suppliers in 24 hours, easy and
free access to energy data or access to dynamic price
Highlights from 2018 contracts – paving the way for new technologies and
services to empower these users.
REGULATORY MONITORING
> FEM and EGMF worked together with Orgalim on the
The Partnership’s comprehensive monitoring service covers Goods Package (compliance and enforcement proposal),
over 80 regulatory and policy issues at EU level, tailored to with most comments being taken into account by the
each client’s requirements. In 2018, a number of new topics
including batteries and accumulators were added to the
portfolio. Moreover, the Federation of European Producers
of Abrasives (FEPA) became the latest beneficiary of the
Monitoring Package.

ADVOCACY AND LOBBYING

The Partnership team designs and supports advocacy
campaigns towards the EU institutions, including specialist
support for communications, public relations and public
affairs activities. Noteworthy initiatives from the past year
include:

> GCP Europe and AREA successfully advocated for the

Our Work 28

ORGALIM PARTNERSHIP PROJECT MANAGEMENT AND SUPPORT

The Partnership was created over 15 years ago The Partnership also provides project management services
to meet the specific needs of sector associations, and support for specific activities related to working groups,
whether that be a Brussels representation and platforms and industry initiatives. In 2018 these included:
visibility as the voice of their industry, targeted
information on relevant policy areas, or advocacy > FEM’s Smart Logistics Challenge was designed to engage
on regulatory and policy issues. with university students by giving them the chance to put
forward ideas on the trends transforming the industry.
Today, we offer a full secretariat to 11 associations Eight winners were selected during the FEM Congress in
and services to a further nine (both Orgalim September 2018 to help the materials handling industry
members and non-members) – making the ‘Deliver Tomorrow’.
Partnership the strongest European sector
platform in the technology industries. An > ESMIG celebrated its 10th anniversary with several events
overview of Partnership clients can be found in the and publications throughout the year and a social media
‘Members and partners’ section of this report. campaign #ESMIG10.

co-legislators – serving the twin aims of enabling better > On the occasion of Pneurop’s 60th anniversary, Europump
enforcement of the Regulation and removing administrative and Pneurop teamed up for a high-level policy event in
burden for manufacturers. Brussels: ‘The EU Industry Policy Strategy: Innovation,
Sustainability, Digitisation’.
> The Partnership facilitated cross-sector cooperation
on draft ecodesign measures relating to components PRIORITIES FOR 2019
integrated into final machines like material handling and
garden equipment – helping gain the exclusions needed > With European Parliament elections and the
to avoid unnecessary equipment redesign and minimise appointment of a new College of Commissioners
administrative burden. on the horizon in 2019, many Partnership client
associations are taking this opportunity to shape
> In the context of the adoption of a revised Electricity their strategy and vision for the next five to ten
Directive, T&D Europe successfully advocated for the years, with plans in place to produce manifestos,
establishment of a transparent monitoring process to white papers and campaigns targeting the new
assess progress on smart grids deployment in the EU with intake of EU policymakers – with the Partnership
the help of indicators and grid performance data. team on hand to contribute advice and expertise as
needed.
ASSOCIATION MANAGEMENT
> This critical juncture is also a fitting moment to
Our general secretariat services handle complete take a closer look at how EU legislation works,
operational management for 11 European technology what its value is for European industry, and why
sector associations. In 2018, with the addition of a new more companies should be aware of and involved
team member, the Partnership assumed full management in this process. Working with other departments
of T&D Europe. within Orgalim, the Partnership will hold a lobbying
workshop in spring 2019 where members and
BUSINESS INTELLIGENCE clients can learn more about how advocacy works in
practice through seminars, case studies and a visit
We deliver made-to-measure business intelligence to clients to a European institution.
in a range of areas – from targeted research, to market
surveys, to industry statistics.

For example, the Partnership supports EGMF in running bi-
annual market surveys on 12 product groups and provides
analysis of the outdoor power equipment market in Europe.
In 2018, we assisted with implementation of a new online
tool allowing members to upload their individual market
data without any intermediary – enabling automation of
data collection, simpler compliance with competition law
and more secure data handling.

29 Orgalim Annual Report 2018

Publications

Orgalim legal publications: Orgalim’s MI 18 Supplementary Conditions are designed
supporting companies in their for use in combination with the popular Orgalim S 2012
daily work General Conditions, primarily deployed in international
contracts for the supply of technology industry products.
O rgalim’s Legal Affairs Working Group produces The MI 18 are intended for minor installation work to
legal publications to provide technology products delivered under the S 2012 Conditions, for
companies with practical tools to support their example connecting a product to existing equipment and to
day-to-day work. Our first legal publication electrical systems, arranging for power supply, cooling, and
was issued in the 1950s and we currently offer so on.
28 titles, updated in line with new or revised legislation.
Thousands of companies in Europe and around the MODEL FORMS
world make use of these resources – a testament to their
continued success. Orgalim’s model forms provide practical assistance in
drawing up contracts, which cannot be standardised to the
Easy-to-use solutions helping same extent as general conditions. Taking into account
companies streamline their applicable law, including competition rules, these forms
business relations can be customised by the parties involved in line with their
requirements.
Our legal publications provide companies with contractual
solutions for business-to-business relations – with use Recent releases:
cases ranging from product supply, product installation,
repair and maintenance, to agents and distributor Model Contract for Technical Consultancy Services on a
abroad contracts. All have been drafted to reflect normal Time and Cost Basis
contractual practice in our industries. It is worth noting that
Orgalim represents the interests of both buyers and sellers, This model contract is intended for cases involving an
licensors and licensees, as the technology industry is its external expert performing consulting activities in a
own main customer. technical field: for example, hiring a specialised consultant
for the implementation of a product process or for
Our legal publications fall under three main categories: guidance in adapting machinery to the health and safety
requirements of a new export country.
GENERAL CONDITIONS

Designed for use in business-to-business transactions, our
general conditions are standard documents that can be
used by parties without having to complete or adjust them.
In practice, these general conditions are included as part of
offers and orders.

Recent releases:

STP 18: General Conditions for the Supply of Standard
Products

With the publication of these new general conditions,
Orgalim meets the demand of companies asking for concise
conditions fitted to standard products: that is, products
that meet general market needs without addressing the
specific requirements of an ordering customer.

MI 18: Supplementary Conditions for Minor Installation
Work concerning Mechanical, Electrical and Electronic
Products, delivered under Orgalim S 2012

Our Work 30

28

Publications GUIDES

currently offered Orgalim guides provide information on a range of topics
of importance for the technology industries – from
3,415 explanations on the scope and application of EU regulations
Number of and directives, to guides on Orgalim legal publications such
licenses as the S 2012 supply conditions.
in use for
bestseller S2012 Language versions

Number of years Most of our legal publications are available in several
languages, usually in English, French and German. Our
businesses have been using S 2012 General Conditions are available in 16 languages,
Orgalim publications including Turkish, Russian and Chinese.

35 Find out more

Number Further information on the legal publications, language
of countries availability and how to order can be found on our website:
https://www.orgalim.eu/legal-publications
where licence holders of Orgalim
general conditions are registered Companies that would like to attach an electronic version
of Orgalim’s general conditions when sending tenders and
1000S contracts by email to their customers and suppliers must
Number of companies obtain a special licence agreement with Orgalim to do so.
using Orgalim publications today These licensing agreements can be obtained through our
licensing website: https://licensing.orgalime.org

31 Orgalim Annual Report 2018 FEB MAY
MAR
Communications

F rom promoting Orgalim’s industry vision for 2030
to supporting our day-to-day advocacy work,
our communications activities play an important
role in helping us shape a future that’s good for
Europe’s technology industries.

2018 was a year of evolution: following intensive
engagement across our membership, the decision was
taken to update Orgalim’s brand identity to better reflect
the dynamic sectors we represent. Through invaluable
collaboration – internally with our Board of Directors and
communications professionals in member associations,
and externally with relevant stakeholders – we forged a
renewed brand: in January 2019 Orgalime became Orgalim,
Europe’s Technology Industries.

Building on a heritage of over 64 years, this new name
complemented by a fresh visual identity serves to reinforce
our impact at this crucial moment. Moreover, we have
implemented upgraded tools to amplify our messages –
including the website www.orgalim.eu, live since January.

In parallel we continued to develop and evolve our existing
channels: from the regular ‘In Brief’ and ‘Members’ Digest’
newsletters, to our social media activity, to organisation of
and participation in events ranging from our ‘Collaborate
to Compete’ conference in November to EU Industry Days
and the FT Future of Manufacturing Summit. In addition,
our new series ‘Technology at Heart’ spotlighted real-
world examples of the positive impact of our industries on
Europe’s economy and society.

Backed by a reinforced team, our efforts in 2018 have
laid a solid foundation for building our work in support of
Orgalim’s advocacy activities and strategy towards 2030,
and the services we provide to our members and clients.

JAN

Our Work 32

OCT
NOV

DEC

JUN

JUL

On Twitter FOLLOWERS INCREASE IN RETWEETS LIKES IMPRESSIONS
in 2018 FOLLOWERS

On Linkedin POSTS FOLLOWERS INCREASE IN
in 2018 FOLLOWERS

OUR TEAM

Malte Lohan Eugenia Forcat Olivier Janin Sigrid Linher

Director General Director - Director - Director - Energy,

Communications Partnership Climate &

Environment

Željko Pazin Philippe Portalier Pierre Lucas Stéphanie

Director - Trade, Director - Better Manager - Mittelham

R&I, Legal Regulation, Industrial Policy Manager -
Environment
Compliance and & Digitalisation,

Standards Partnership

Diederik Eleonora Piccinni Laure Dulière Anne Claire
Peereboom Rasselet
Manager - Technical Senior Adviser -
Manager - Partnership Senior Adviser -
Regulation Partnership
Partnership

Luca Conti Anna Dunne Claire Grossmann Georgiana Huiban

Adviser - Adviser - Adviser - Adviser -

Partnership Communications Partnership Communications,

Partnership

Our Team 34

Rozenn Maréchal Toma Silvia Selandari Ioana
Mikalauskaitė Smarandache
Adviser - R&I, Adviser - Trade &
Adviser - Energy Adviser -
Economics & Legal
Partnership
Statistics

Gerrit Steinfort Marina Guajardo Ivana Jakovljevic Helena Le Goff-
Jedrzejowicz
Adviser - Junior Adviser - Junior Adviser -
Junior Adviser -
Digitalisation Partnership Environment
Technical Regulation

Inge Dewit Jackie André Alina Burlacu Nathalie Devresse
Vanhaelen
Publications & Assistant - Assistant - R&I,
Office Management
Accounts Officer Partnership Economics
and Personal
& Statistics,
Assistant to the DG
Partnership

Deborah Girasa Paula Pihlava Christelle
Vandermeuter
Assistant - Assistant -
Assistant -
Energy, Climate & Communications
Partnership
Environment

OUR MEMBERS AND PARTNERS

National Associations

AUSTRIA BELGIUM BULGARIA

www.feei.at www.metalltechnische www.agoria.be www.bcee-bg.org
CROATIA industrie.at FINLAND

DENMARK

www.hup.hr www.hgk.hr www.di.dk www.teknologiateo
FRANCE GERMANY llisuus.fi

www.fieec.fr www.fim.net www.vdma.org www.wsm-net.de
HUNGARY IRELAND ITALY

www.zvei.org www.mageosz.hu www.ibec.ie www.anie.it

Our Members and Partners 36

LATVIA LITHUANIA LUXEMBOURG

www.anima.it www.masoc.lv www.linpra.lt www.fedil.lu
PORTUGAL
THE NETHERLANDS NORWAY

www.fme.nl www.metaalunie.nl www.norskindustri.no www.aimmap.pt
SLOVENIA
SPAIN SWEDEN SWITZERLAND

www.gzs.si www.sercobe.es www.teknikforetagen.se www.swissmem.ch
TURKEY
UNITED KINGDOM

www.makfed.org www.beama.org.uk www.eama.info www.gambica.org.uk

37 Orgalim Annual Report 2018

European Sector Associations

www.afecor.org www.aqua-metering.org www.cece.eu www.cefacd.eu

www.ceir.eu www.efcem.info www.egmf.org www.euralarm.org

www.europacable.eu www.europump.eu www.fem-eur.com www.pneurop.eu

Partnership Clients

www.area-eur.be www.cecapi.org www.ceir.eu www.cemep.eu

Our Members and Partners 38

www.ceo-tools.com www.efcem.info www.egmf.org www.irrigationeurope.eu

www.eifi.org www.epta.eu www.esmig.eu www.euralarm.org

www.europump.eu www.eurovent.eu www.fem-eur.com pwrwodwu.fcetm-g-reouurp.cso/ m/
intralogistic-systems

www.fepa-abrasives.com www.gcpeurope.eu www.mssi-electrical.org

www.pneurop.eu www.tdeurope.eu

Boulevard A Reyers 80 | B1030
Brussels | Belgium

[email protected]
+32 2 206 68 83
@Orgalim_EU

www.orgalim.eu

SHAPING A FUTURE THAT’S GOOD

All rights reserved @May 2019, Orgalim
Editeur responsable: Malte Lohan, Director General
Orgalim is registered under the European Union Transparency Register
ID number: 20210641335-88