Industrial innovation is the key to regaining competitiveness,” said Stephan Kubinger, deputy chairman of the industry division in the Upper Austrian Chamber of Commerce, on Tuesday at a press conference. High costs for personnel and energy as well as bureaucratic effort are putting a strain on companies. According to an industry survey 29 percent of industrial companies look forward to the next twelve months with confidence, and 33 percent are worried about their existence due to high costs and poor order situation.
Kubinger and Martin Bergsmann, technology spokesman for the industry division, cited Switzerland as a model for Austria. This is also a high-wage country, but has many successful industrial companies. In the international competition ranking IMD, Switzerland was in second place this year. Austria slipped from 24th to 26th place, compared to 16th place in 2016.
Without innovation, there is a risk of loss of production and jobs, warned Bergsmann. Austria needs a federal government that gives priority to investments in the future. It’s about accelerating processes, making energy available at a competitive price and, in budget discussions, “prioritizing allocation to the future fields of research, innovation and education,” said Bergsmann.
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**Interview with Stephan Kubinger and Martin Bergsmann on Austria’s Industrial Challenges and Innovations**
**Editor:** Thank you both for joining us today to discuss the current state of Austria’s manufacturing industry. Stephan, you mentioned at the recent press conference that “industrial innovation is the key to regaining competitiveness.” Can you elaborate on what specific innovations you believe are crucial for the industry right now?
**Stephan Kubinger:** Absolutely. We are in a period where technological advancements in automation, digitalization, and sustainable practices are not just beneficial—they are essential. Companies need to adopt smart manufacturing techniques and invest in research and development to improve efficiency and reduce costs. Otherwise, we risk falling further behind in the global market.
**Editor:** Martin, you pointed out that Switzerland is a strong competitor, even though it’s a high-wage country as well. What lessons can Austria learn from Switzerland’s approach to maintaining its industrial competitiveness?
**Martin Bergsmann:** Switzerland has focused heavily on innovation and quality, creating a robust ecosystem that fosters collaboration between industry and research institutions. Their government provides substantial support for R&D, which helps companies thrive. Austria can benefit from emulating this approach by prioritizing investments in innovation and fostering partnerships between the private and public sectors.
**Editor:** You both highlighted concerns about high costs and a challenging order situation. What strategies can Austria implement to alleviate these issues and support its industries?
**Stephan Kubinger:** Firstly, a comprehensive energy strategy that ensures competitive pricing is crucial. We also need to streamline bureaucratic processes to reduce the burden on companies. These steps will help create a more favorable environment for industrial growth and innovation.
**Martin Bergsmann:** Moreover, the government must prioritize funding for future fields of research and innovation. By allocating resources effectively, we can create a sustainable pipeline of talent and technology, crucial for revitalizing the industry.
**Editor:** With only 29% of industrial companies feeling confident about the upcoming year, what do you think is the biggest risk if the government fails to act on these issues?
**Stephan Kubinger:** If we don’t address these challenges, we could face significant production losses and potential job cuts. The longer we wait to make necessary changes, the more we jeopardize our competitive standing internationally.
**Martin Bergsmann:** It’s imperative to view these needs as urgency. Without decisive action, we will see a continued decline in our rankings, risking not only economic stability but also the livelihoods of many Austrians who rely on a thriving industrial sector.
**Editor:** Thank you both for your insights. It’s clear that addressing these challenges head-on through innovation and supportive government policies will be essential for the future of Austria’s manufacturing industry.
