2023-10-06 12:32:34
The domestic industry is sounding the alarm in view of falling production, a lack of orders and poor economic forecasts. “We are clearly in an industrial recession,” said Andreas Mörk, managing director of the federal industry division, at a press conference. “And have no chance of a positive outlook in the near future.” Industry representatives see Austria’s competitiveness at risk and are demanding better framework conditions from politicians.
The development of production and incoming orders is “worrying,” said Sigi Menz, chairman of the federal industry division in the Chamber of Commerce (WKÖ). Accordingly, the production sold in the domestic industry fell by a tenth in the first half of 2023 compared to the same period last year. The wood industry, the chemical industry, the paper industry and the non-ferrous metal industry in particular are severely affected by the decline in production. There were only slight increases in the electrical/electronic and vehicle industries.
Industry representatives are seeing a sharp decline in incoming orders. Overall, incoming orders fell significantly in the first half of 2023 and were 4.6 percent below the value for the first half of the previous year. Incoming orders from abroad fell by 7.4 percent. The metal technology industry suffered a 17.8 percent decline in incoming orders in the second quarter.
Despite declining production and a lack of orders, the number of employees in industry rose by 1.9 percent in the first half of the year. Due to the labor shortage, employees are being retained despite lower utilization. However, industry representatives warned that this would lead to falling productivity and a loss of competitiveness.
For the third quarter, more than half of the trade associations in the federal industrial sector expected a decline in production. Incoming orders are mostly declining or declining sharply, industry representatives reported, citing a current economic survey conducted by trade associations.
Industry representatives are demanding, among other things, rapid implementation of the energy cost subsidy 2, an extension of the electricity price cost equalization until 2030, a reduction in CO2 pricing and more funding for research and development. In order to stimulate the construction industry, they are calling for the stricter lending rules for housing loans to be withdrawn.
According to the current figures from the economic research institute Wifo and the Institute for Advanced Studies (IHS), the recession in industry is somewhat stronger than previously assumed, and industrial production is expected to stagnate in 2024. Wage negotiations are made even more difficult by the new economic figures; metalworkers, for example, are currently negotiating. Federal division chairman Menz called for moderation in the negotiations: “In view of the production and order situation, we have little leeway.”
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