Advantage Austria Show navigation

Industrial Boom Loses Some Steam in 2007

Euro © photocase.com/checka

© photocase.com/checka

March 6, 2008

For 2008 industry experts expect a maximum of 5%, a similar growth rate to that in 2007

The expansion of Austria ’s industry slowed somewhat in 2007. Industrial production growth sank by half compared to 2006, but will still reach 5% in 2008. In 2006 the figure was 9.2 %.

The number of industrial workers increased again last year. At the end of November 421,000 people were employed in domestic industry.

Lack of Skilled Labor a Long-Term Problem

The number of industrial trainees also increased. In 2007 almost 5% more people were being trained than in the previous year. However, due to years with a low birth rate, a shortage of apprentices is expected in the coming years. In 2010 there will be 10% fewer 15-year olds than in 2007. “The problem with the shortage of skilled labor will get worse and the need to fill these openings with foreign workers will get bigger,” according to Manfred Engelmann, Managing Director of the Austrian Federal Economic Chamber’s Industrial Division.

Industrial orders increased by 5% in the first 11 months of 2007 to over EUR 78 bn. 2006 showed a plus of 12% to EUR 81.16 bn. Domestic orders were somewhat higher in 2007 than those from other countries, which was a good sign for the Austrian economy. The industrial boom in 2007 was also buoyed by exports. According to preliminary figures, exports rose by 10.9% to EUR 105.6 bn from January to November – this after a plus of 9.5% the entire year of 2006. In contrast, imports grew only 9.5%.

Strong Exports to Asia

84% of exports went to Europe, 72% to the EU, and 7% to America and Asia . 5.4% fewer industrial goods were shipped to the USA and 28.5% more went to China . Considerably more went to Eastern European countries, and almost 50% more was shipped to India .

According to Engelmann, domestic industry is concerned about the European climate protection and energy conservation policies. With industrial emissions trading (ETS) expected, Austria ’s industry would be burdened with a billion EUROs.


APA-JOURNAL Engineering, 3/4/2008

print
©©ADVANTAGE AUSTRIA