The construction industry in Austria is booming
The construction industry in Austria continues to profit from the generally good economic situation. The current economic barometer of the Association of Austrian Concrete and Precast Plants (VÖB) confirms that the precast sector assumes solid turnover also for 2019 – in particular, in housing construction as well as commercial and industrial building. The continuous positive economic situation, rising demand and high capacity utilization in companies continue to boost the construction companies’ readiness to invest and ensure a continuously high level of employment.
Further turnover growth in the precast industry
The mood of the entire construction industry is also reflected in the current VÖB economic barometer, which measures the mood of the Austrian concrete and precast industry twice a year. More than 80 % of the association members regard the business year 2019 positively and at least expect continuing satisfactory results for their companies. With regard to the entire industry, they continue to consider the development in the business year 2019 as positive: 33 % expect an increase in sales, while half expect at least stable sales compared to the previous year.
Good economic situation results in good order situation
More than 60 % of the association members were able to report turnover increase of an average of 10 % compared to the second half of 2017. The main reason for this, according to 38 % of those surveyed, is owing to the acquisition of new customers. For 19 %, the increase was due to the extension of the performance and/or product portfolio, while 14 % regard the change in the market segment as well as an increased demand as the decisive factor for the growth in turnover. More than 50 % of the association members even had problems in some cases to fill all incoming orders. “A good economic situation results in increased demand.
Boom due to residential construction as well as commercial and industrial building
“The last year resulted in a plus in the construction sector, the same as had been the case in previous years,” confirmed Eder the results of the survey. The driving forces in the previous year were moreover residential construction as well as the commercial and industrial construction sector, while turnover in office building and in the civil engineering sector was to the most part unchanged. For the future development of the market segments in general, more than 70% of the members of the industry expect for the business year 2019 an increase in the precast sector.
But caution is indicated despite the construction boom
“In particular member companies currently profit disproportionately from the strong economic growth. Especially the downstream construction companies fully exploit their capacities and make increasing use of precast building components. Should the situation in the construction sector settle down in the future, the precasters will most likely be the ones to suffer disproportionately,” cautions the VÖB President against all-too euphoric expectations for the future. “However, a positive aspect of the situation is that the companies make use of the favorable environment by making further investments,” adds Eder in conclusion.
