2023-04-18 08:17:07
Price-adjusted growth in 2022 at 3.7%, companies expect stagnation for 2023; Industry indirectly secures up to 300,000 jobs
Vienna (OTS) –
- Metal technology industry strongest industrial sector, real production growth in 2022 at 3.7% (price-adjusted)
- Production value rises to 49.5 billion euros due to general price developments
- Greatest challenges: High energy costs, shortage of skilled workers and unit labor costs
- Companies expect stagnation in 2023, margins under pressure
- Strengthening of business location: commitment to free trade, reduction of labor costs, training offensive, investments
The metal technology industry recorded real production growth of 3.7% in 2022. Due to the high inflation rates, nominal growth was 11.3%, causing the total production value to rise to 49.5 billion euros (2021: 44.4 billion). The number of employees rose slightly to 137,600 (2021: 136,400). The export ratio of the metal technology industry last year was 79.1%, the three most important export markets were Germany (11.6 billion euros), the USA (3.7 billion) and France (2 billion). Overall, exports rose by 5.6% in real terms in 2022.
Christian Knill, Chairman of the Metal Technology Industry Association: “The year 2022 started for the metal technology industry with good order backlogs, but the Russian war of aggression once morest Ukraine and the resulting crisis in energy costs also affected our industry. Nevertheless, we were also able to achieve growth in the course of the global economic upswing. The second half of 2022 then slowed down considerably and the start of the new year was once more characterized by uncertainties.”
Outlook 2023: Stagnation
The picture for the current year is as follows: A lightning survey conducted by the trade association among member companies revealed that around 60% of the companies surveyed are already feeling a drop in demand, with only 8% reporting an increase. On average, companies only expect growth of less than 1% for 2023, and every third company expects production to fall. In its current forecast for the entire industry (manufacturing of goods), the economic research institute even assumes a decline in value added of 1.9%. At the same time, this has put pressure on margins, with every fourth company closing the year with a negative result.
In addition, the current developments on the labor market are burdening companies. “We are also experiencing an acute shortage of skilled workers. Added to this are the still far too high energy prices and global uncertainties, which are making the world markets significantly more volatile. For us as an export-oriented industry, these are enormous challenges, especially since we are at a clear disadvantage compared to other European countries in terms of unit labor costs,” says Christian Knill.
Industry ensures prosperity and employment
The metal technology industry is loyal to the location and ensures sustainable employment and prosperity. An analysis by the Institute of Economics IWI shows the economic importance of the sector: every euro of added value generated in the sector means an additional euro for Austria, and every job in the sector results in an additional job in other sectors. This means that the metalworking industry indirectly secures 300,000 jobs and a production value of almost 85 billion euros.
Christian Knill: “Our companies invest around two billion euros a year in research and development and offer innovative solutions in many areas, for example for climate protection. Many of our member companies have become global market leaders and hidden champions thanks to their special know-how. We take our responsibility for the location seriously and invest in jobs and technology. But we also need the right framework conditions. Free international trade is essential for our survival as an export-oriented industry, so the federal government should work for fair trade relations and support the Mercosur agreement, for example. At the same time, the shortage of skilled workers is acute: We expect solutions to be found quickly here, for example with regard to labor costs, childcare and the employment of older workers. There is a lot to be done to ensure the competitiveness of Austria as a business location. We make an important contribution to this.”
Further information: www.metalltechnischeindustrie.at
About the metal technology industry
The metal technology industry is Austria’s strongest sector. More than 1,200 companies from the mechanical engineering, plant construction, steel construction, metal goods and foundry branches form the backbone of the domestic industry. The export-oriented industry is medium-sized, consists of more than 85% family businesses and is responsible for a quarter of all Austrian exports. Numerous companies are world market leaders and “hidden champions”. The metal technology industry directly employs more than 137,000 people and thus indirectly secures around 300,000 jobs in Austria. In 2022, it generated a production value of around 49 billion euros. The Fachverband Metalltechnische Industrie, an amalgamation of the former trade associations for the machine and metal goods industry as well as the foundry industry, is one of the largest business and employer associations in Austria and is an independent organization within the Austrian Chamber of Commerce.
Questions & contact:
Association of the Metal Technology Industry
Dipl.-jur. Sabine Hesse, MBA
Manager
+43 (0)5 90900-3482
office@fmti.at
www.metalltechnischeindustrie.at
1681805910
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