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Study on benefits of labels in the mechanical engineering industry (GEN – 843.00)

09 November 2017

2 min read
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General

Study on benefits of labels in the mechanical engineering industry (GEN – 843.00)

09 November 2017

2 min read

GEN – 843.00. The Impulse Foundation of our German Member Association VDMA sponsored a research study focused on benefits of energy labels in the B2B environment of the mechanical engineering industry. The study carried out by the Cologne Institute for Economic Research provides insight into why industrial consumers should be treated differently to final consumers represented by the public. The Eurovent Team has summarised the study results within this article.

Origin of the study

The success of consumer orientated Energy Labels has resulted in political tendencies to expand­ their use to products which are mainly traded in business-to-business (B2B) relations. The study addresses the necessity of alike labels in markets, in which profes­sional and well-informed business partners are active.

Content of the study

The study surveyed over a thousand companies in the mechanical engineering industries, and reached the following conclusions:

  • There are no significant information asymmetries between customers and suppliers. In the B2B sector of the mechanical industry, customers are knowledgeable about design and characteristics needed in the technology, necessary in order to elaborate their products.
  • Demand for labels and their value added to the development of products is limited. The information provided is often not sufficient or suitable to the needs of B2B consumers.
  • Labelling is efficient where there is a standardised use for a product. In the engineering industries, product uses are heterogeneous, and labelling is not necessarily a useful tool.
  • Mandatory product labels could hinder innovation.

On 7 November, MEP Ms Martina Werner hosted a breakfast presentation of this study in the Members’ Salon of the European Parliament. The presentation was followed by a debate, where it was mentioned by a European Commission representative that the energy efficiency labels in an industrial context are not planned at this moment.

Yet, she confirmed that the European Commission is still considering the possibility of proposing energy labelling requirements for commercial refrigeration in the future (note: ENER lot 12 is currently on hold, but will be covered by Policy Officer Orsola Irene Mautone).

Recommended Actions

Members are recommended to look into the study, as it provides for useful insights into the views of engineering manufacturers from a major Member State.

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