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€18.8 billion for Austria’s Construction Industry

Bau © photocase.com/Roodini

© photocase.com/Roodini

July 8, 2008

Financial struggles and exploding raw material costs have caused a slowdown in the growth of Austria’s construction industry

The Austrian building industry is growing only moderately - the great boom of recent years is over. This year underground engineering, as a segment of the construction industry, will only increase 3.9% according to the Union of Industrial Construction Firms. For 2009 they are expecting growth of only 3.6% in the same segment and for 2010 an increase of just 3.2%. In comparison, the volume in underground engineering in 2007 rose as high as 6.7% nationwide.

Structural engineering grew 5.1% in 2007; this year an increase of only 2.7% is expected. For 2009 a gain of just 2.2% and for 2010 not more than 1.8% growth are estimated.

€18.8 billion for Building Production

In absolute numbers production in the building industry added up to €14.34 billion in 2007, for 2008 an amount of €14.812 billion is expected, in 2009 €15.182 billion and in 2010 as much as €15.516 is anticipated.

The Union of Industrial Construction Firms and its CEO Wolfgang Hesoun, General Director of the Porr company, however, are still rather pleased with these results: “It is quite a satisfactory growth rate.”

One reason for slower growth in the construction industry are financial struggles which led to cancellations of several projects announced earlier, especially in the structural engineering segment of the building industry.

Other reasons for the slowdown are shortage of labor and “exploding” raw material costs, says Hesoun.

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