Because new construction is stumbling, construction companies are already laying off staff – and that in the summer, which is actually the high season. Ex-Swietelsky boss Karl Weidlinger now fears that the construction sector is threatened with a similar scenario as in gastronomy. Many employees had left there during the pandemic.
Sharply increased construction costs, much stricter credit financing guidelines, plus general inflation, which in some cases is already eating into reserves: all this is causing homebuilders to postpone their dream of owning their own home, but developers are also jeopardizing projects . on hold.
“We will enter a construction recession this year – we are already in the middle of it,” said Karl Weidlinger, who until the end of 2022 was head of the Linz construction group Swietelsky, which employs about 13,000 people.
Construction in particular is struggling, Weidlinger said at an event of the Best Business Association, or BBA for short, in Gurten. And the challenges leave all their marks.
“This Is Actually Madness”
Small and medium-sized companies are already saying goodbye to employees – and that in the summer, which is normally the peak season for construction. “It’s actually great,” muses the former Swietelsky manager. And further: “Three months ago I would have said there was a shortage of construction workers – but the problem is now solved.”
Automate more and become more professional
As in the hospitality industry during the pandemic, there is now a risk of workers moving away from construction. “You need an income. They will not be able to feed their families from the unemployed,” says Weidlinger, who is aware that there is a lot of pressure to act: “The construction industry has a lot of catching up to do in terms of productivity. There is a huge challenge to automate and become more professional.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
