• Sat. May 18th, 2024

Industry remains skeptical about economic recovery

BySamantha Johnson

Apr 6, 2024
Industry remains skeptical about economic recovery

The domestic industry is facing tough times with falling production, a lack of orders, and high unit labor costs. Siegfried Menz, chairman of the federal industry division in the Chamber of Commerce (WKÖ), stated that the industry is in a recession that may persist for a long time. Industry representatives are urging politicians to create better framework conditions to support businesses during this challenging period.

Preliminary data shows that Austria’s manufacturing sector saw a 14.2 percent decline in production value in 2023 compared to the previous year. Energy, metal technology, paper, wood, non-ferrous metal, and chemical industries were among the sectors experiencing significant negative developments. The order situation also worsened in 2023, with incoming orders falling, especially from overseas markets.

Despite the challenging conditions, the employment figures in the industry remained stable, with around 473,000 people employed in 2023. Companies are striving to retain their skilled workers despite the production challenges. However, industry representatives are concerned about the impact of high unit labor costs and labor costs on the competitiveness of companies in the long run.

Looking ahead to 2024, industry representatives do not see any improvements on the horizon. Economic assessments for the current year are predominantly negative or stagnating. There is a call for politicians to extend electricity price compensation, ensure security of supply in the energy sector, and increase funding for research and development.

To enhance competitiveness, the WKO is advocating for a reduction in non-wage labor costs to the level seen in Germany, financing the family burden equalization fund (FLAF) through the public budget, and reducing bureaucracy by streamlining information and reporting obligations. The industry is seeking support to navigate through these challenging times and emerge stronger in the long term.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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