Costs keep Salzburg industry cautious despite recovery signs

Austria’s economy is growing slightly again, but high costs are keeping industry cautious, ORF reported after a Salzburg Chamber of Commerce industry conference in Salzburg on Monday. Industry exports are among the factors supporting the recovery, according to economic researchers.

Companies continue to face high energy costs, rising raw material prices and uncertainty in the global economy. A forecast growth rate of about 1% next year is a positive signal, but industry representatives said it was not enough to restore confidence across the sector.

The outlook varies by company. Claudia Zoff, managing director of toolmaker Alpen-Maykestag, said sentiment was improving in some industrial businesses but remained subdued in others because of global uncertainty and sharp increases in raw material prices.

Geislinger GmbH, by contrast, is benefiting from the expansion of US data centres, whose energy needs require generators that use the company’s products. Managing director Benjamin Geislinger said the company was focused on expanding production and increasing capacity quickly.

Industry accounts for about a quarter of Austria’s economic value added, said Peter Unterkofler, head of the industry division at the Salzburg Chamber of Commerce. He called for better conditions for businesses in Europe and at home, including lower labour costs.

Companies also discussed bureaucracy, international competition and the use of artificial intelligence. Unterkofler said more Austrian companies, including small and medium-sized businesses, were adopting AI. Industry representatives expect its use to create more jobs than it displaces; about 18,000 jobs would be created in Salzburg, he said.