Vienna (OTS) – Problems in granting loans for real estate purchases and a lack of orders are currently leading to significant declines in sales in the Austrian precast concrete industry. According to the current semi-annual economic barometer of the Association of Austrian Concrete and Prefabricated Parts Works (VÖB), which was carried out by the Vienna market research institute TQS, 64 percent of the companies surveyed in the industry recorded falling sales in the second half of 2023 compared to the previous year. Eight out of ten companies attribute these declines in sales to the poor order and economic situation and high real estate prices. “The sales of our companies fell significantly in the second half of 2023. This trend will continue in the first half of 2024, as the federal government’s announced housing construction measures come too late and are still not sufficient to significantly stimulate the construction sector by the end of the year
“, says VÖB President Michael Wardian. The decline in sales is particularly noticeable in residential construction. The acutely weak economic situation is also affecting the number of employees in the industry.
The weak construction economy is also clearly noticeable in the Austrian precast concrete industry. 64 percent of the companies surveyed in the industry complained about falling sales in the second half of 2024. The decline in sales in residential construction was particularly painful: almost all those surveyed were affected by this. At the same time, the fewest declines were recorded in civil engineering and road construction; 12 percent of those surveyed even reported increasing sales. “Limiting lending rules and high interest rates are responsible for the current slump in residential construction. The stable situation in the infrastructure sector, however, is primarily due to the continuous expansion of sustainable energy and mobility. Although we welcome the federal government’s announced housing construction offensive, it comes too late and is insufficient to have a positive impact on the construction sector this year. Further economic stimulus packages must be put together for the construction industry,” says VÖB President Michael Wardian. Accordingly, sales forecasts remain depressed. A good three quarters of the companies expect the economy to be “less” or “not at all” satisfactory in the first six months of this year.
Falling sales
The poor order situation and economic situation in the construction industry are having a significant impact on the sales of precast manufacturers in the first half of 2024: eight out of ten respondents say that their sales will fall by the middle of the year. The forecasts for the rest of the year are similarly unfavorable: 84 percent of companies expect economic development to be “less” or “not at all” satisfactory this year. The situation is similar with sales forecasts: 88 percent of those surveyed say that sales across the entire industry will continue to fall by the end of the year.
Impact on personnel
The current weak economy is having an impact on employee numbers: around half of those surveyed expect the number of employees to fall this year. “At the same time, young professionals are still in demand in the industry, as 40 percent of companies have open apprenticeships that they cannot fill. A remarkable value in the current, difficult economic situation
“, comments Anton Glasmaier, VÖB Managing Director.
Sustainability is a top priority
The industry remains optimistic when it comes to the future market development of prefabricated construction: a good half of those surveyed (52 percent) expect an increasing prospect in relation to the total construction volume. The companies surveyed themselves confirm that sustainability is playing an increasingly important role in precast products: 88 percent of them already use CO2-reduced cements, 44 percent recycled concrete. “We are using this year to make the life cycle assessment performance of precast products transparent: By summer, our calculation tool will be independently verified, which covers the calculation of environmental product declarations for eight product areas. In addition, 23 prefabricated products are currently being used, such as: B. Element ceilings and double walls, industry EPDs were created and verified,” says Michael Wardian.
About the VÖB
The Association of Austrian Concrete and Precast Parts Works (VÖB) is the central representation of the interests of Austrian precast concrete manufacturers. The association, founded in 1955, represents around 70 member companies – and thus the majority of all precast concrete factories producing in Austria. The VÖB was founded according to Austrian association law, is a voluntary interest group and sees itself as an innovative and open-minded business association. The precast concrete industry is an important area of the Austrian construction industry. With its high-quality products from domestic value creation, the industry stands for performance, quality thinking, resource-saving production and qualitative growth. In this way, the Austrian precast concrete factories make a significant contribution to future-proof and sustainable construction. More information at www.voeb.com and in the VÖB Beton blog https://blog.voeb.com
Questions & Contact:
Inquiry note:
dr. Nedad Memic
Communications manager VÖB
M: 0664/547 63 19
memic@voeb.co.at | www.voeb.com