Austria's industry under pressure: Losses of workplace and outsourctions are increasing

Austria's industry under pressure: Losses of workplace and outsourctions are increasing

The current situation in Austrian industry is alarming. The sector has been suffering from a deep recession for over two years, which is perceived by numerous companies as a serious threat. The reports on workplace reduction and possible relocations of production have become common, and many companies are forced to take drastic measures.

In the course of 2024, the problem of the labor market, especially in the manufacturing industry, became increasingly pressing. According to the latest data, almost 25,000 people were registered with the labor market service (AMS) as unemployed in October - this corresponds to an increase of almost 19 percent compared to the previous year. The automotive supply industry in particular is affected by the developments. Companies like Magna in Graz announced the reduction of a total of 950 jobs, while AVL List stroked 200 jobs. At Steyr Automotive in Upper Austria, further terminations were also necessary, and the supplier Schaeffler in Berndorf plans to dismantle around 450 jobs.

workplace cuts and closures in various industries

The trend of workplace cuts does not stop at the automotive industry. AT&S will also reduce 250 jobs in Leoben and Fehring, while Infineon is cutting 380 jobs in Villach. The sensor manufacturer AMS-OSRAM plans to outsource 50 jobs to Asia, and the Aluminum producer Hammerer in the Innviertel will reduce 100 jobs. In addition, the last Mozart ball near Salzburg chocolate will soon roll off the conveyor belt; The closure of the traditional factory after 127 years is imminent.

Despite these dark views, there are also positive developments in some companies. The Upper Austrian aircraft supplier FACC was able to record growth in the orders, which increased sales by a quarter to more than 640 million euros. The profit also quadrupled. According to a company spokesman, personnel reduction is "not an issue" at all, since you are actively working on digital measures to reduce the high costs.

The situation at MIBA, an industrial group from Upper Austria, was similarly positive, the turnover of which rose by almost ten percent in the past financial year to over 1.2 billion euros. The areas of wind energy and e-mobility developed particularly strongly. Despite the establishment of new works in China and Mexico, the company plans to build a training center for apprentices in the home base of Laakirchen.

rosenbauer can also take a positive balance. After a loss year, the company returned to the profit zone operatively. The number of employees in Austria also increased slightly. The takeover of a majority share by Stefan Pierer - despite the problems of KTM, whose future corporate development is observed by many - has no influence on the planned capital increase of Rosenbauer, as the company reports.

Overall, it turns out that while many companies are fighting with difficulties, there are also bright spots that arouse hope for stability in the challenging market situation.