Austrian Metal Industry Sees Modest Recovery Amidst Falling Exports and Geopolitical Fears

Austria's metal and technology industry, a cornerstone of our national economy, is navigating a complex and challenging period. While the slight production growth of 2.7% in 2025, reaching approximately 47 billion Euros, offers a glimmer of hope after the severe downturns of 2023 and 2024, it is crucial to understand that this recovery is fragile and falls far short of compensating for the nearly 16% production value decline over the previous two years. This is not a triumphant return to form, but a tentative step forward on a long road.

The most concerning aspect highlighted by Christian Knill, the industry's representative, is the dramatic job losses. The departure of around 4,700 individuals in 2025, a 4.2% decrease, adds to the approximately 10,000 permanent jobs and 4,000 temporary positions shed in the preceding two years. This trend is directly linked to a significant drop in exports, which fell by 2% to 39.1 billion Euros. The 23% plunge in exports to the United States is particularly painful, underscoring our industry's vulnerability to shifts in major global markets. While exports to China saw a 13% increase, they still represent a mere 6% of the total export volume, offering little solace.

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Die leichte Erholung aus dem Vorjahr kann den Einbruch in den Jahren zuvor bei Weitem nicht wettmachen. Der anhaltende Rückgang bei den Exporten, vor allem in die USA, schmerzt uns besonders. Die Folge ist ein dramatischer Jobverlust in unserer Branche.

The outlook for the coming year is further clouded by escalating geopolitical tensions, particularly the conflict in the Middle East. Economic research institutes Wifo and IHS have already revised down their growth forecasts for Austria's overall economy due to this instability. The optimism that was beginning to emerge for 2026 is now tempered by uncertainty. A significant majority of surveyed companies anticipate a decline in production, and two-thirds deem a recovery in the next six months unrealistic. This pervasive pessimism is leading to a strategic shift, with companies increasingly looking to relocate investments and jobs abroad, as indicated by the 60% of respondents expecting employment growth at their foreign sites.

Compounding these challenges is the government's recent budget path, which, while promising a reduction in ancillary wage costs from 2028, offers little immediate relief. The industry's plea for support in navigating these turbulent times, marked by declining exports and geopolitical instability, requires more than just long-term fiscal adjustments. The focus on international markets, especially the significant drop in U.S. exports, highlights a critical need for strategic diversification and robust support for domestic industries facing global headwinds. The future of Austria's metal and technology sector hinges on addressing these immediate concerns while fostering an environment that encourages domestic investment and job retention.

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Unternehmen würden Standorte und Stellen ins Ausland verlagern.