Due to rising costs, many domestic companies are currently in trouble. According to a current survey by the trade association, 42 percent of Austrian retailers expect losses this year and 14 percent even fear closure of their business.
Companies are mainly confronted with sharply increased costs for electricity (average 43 percent higher than last year) and gas (average 44 percent higher). More than three quarters (79 percent) of the 197 companies surveyed also said they experienced delivery delays and failed deliveries. Another challenge is the staff shortage, which affects just under half (43 percent).
Trade union: 2023 will be even harder
A fifth was therefore often only able to run the company to a limited extent. “The results of our research show once again the serious consequences of the inflation wave for the Austrian retail sector,” said Rainer Will, general manager of the Retail Association. However, he does not see the real challenge until next year: “Then all energy price increases will affect the consumer and the available purchasing power will continue to fall.”
Government measures such as a reduction in non-wage labor costs, a reduction in VAT on energy by ten percent (previously 20 percent) and an energy price ceiling for companies are therefore essential.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
