Austrian industrial firms plan cost cuts as China pressure grows

According to ORF, 82 percent of Austrian industrial companies are planning cost-cutting measures and considering relocation as the sector comes under growing pressure.

The figure comes from the Austrian Economic Chamber’s Industry Radar survey, which was conducted across the country. Similar sentiments are evident in Upper Austria, according to Joachim Haindl-Grutsch of the Federation of Austrian Industries in Upper Austria.

Haindl-Grutsch said artificial intelligence offered significant potential for savings. He expects administrative tasks such as bookkeeping and cost accounting to increasingly be handled by artificial intelligence.

Chinese competition adds pressure

Growing competition from China is a key driver of the cost-cutting plans. Haindl-Grutsch said Austrian companies had done very good business with China for 20 or 30 years by exporting there, but that Chinese companies could now perform at least as well as Austrian firms.

According to the Economic Chamber survey, one in two Austrian industrial companies now feels under pressure from Chinese competitors.