Austrian Companies Eyeing Overseas Jobs Amid High Costs and Bureaucracy

Austrian companies are increasingly moving jobs and value chains abroad, with a significant majority of top executives anticipating such shifts within the next five years, according to a survey by the consulting firm Horváth. Nearly half of the 94 surveyed leaders, many from large corporations, expect job relocations out of Austria.

The primary drivers for this trend are Austria's high labor costs, escalating energy prices, and excessive bureaucracy, which collectively diminish the nation's appeal as a business hub. These factors have long been highlighted by industry leaders as detrimental to the country's economic competitiveness.

Beyond cost and location issues, companies are also strategically restructuring their operations. Learning from recent global crises, businesses are prioritizing resilient supply chains and regional market access. This involves establishing production and distribution closer to key markets, particularly in North America and India, to mitigate risks and avoid trade barriers.

Stefan Bergsmann, CEO of Horváth Austria, notes that while cost-driven relocations have largely occurred, strategy-driven shifts will persist. He also points out that the rise of artificial intelligence may reduce the pressure to automate jobs abroad, as tasks suitable for automation can remain domestically. Meanwhile, capital investment is expected to remain strong in Austria, as high domestic costs push companies toward greater efficiency.