The industrial engine starts to sputter. “We have several problems,” says Erich Frommwald, chairman of the industry division of the Upper Austrian Chamber of Commerce. As head of the Kirchdorfer Group, he is also directly affected by the crisis in the construction sector.
The high energy and labor costs, the increasing bureaucratic efforts, the growing shortage of skilled workers: “It’s not easy, but what is easy?” muses Erich Frommwald. The chairman of the industry department of the Upper Austrian Chamber of Commerce speaks of “several problems we currently have”: “The economy is slowing down. Many of our markets are weakening.”
Interest rates rose and the willingness to invest fell
The interest rate steps that the ECB has taken to halt inflation are also having an effect. “The fact that you see so many interest rate increases within twelve months puts pressure on the location,” says Frommwald, “as a result, the willingness to invest decreases, and you also feel that in the economy.”
Cement producers are already suffering
The crisis is already palpable in the construction sector due to the enormous reluctance to undertake new projects. The kiln at the Kirchdorfer cement factory had to be shut down three times this year because the warehouse was full, says Frommwald, director of the Kirchdorfer Group, and fears that another production stoppage will be necessary this year. The manager knows that other cement producers will also have to reduce their production.
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.
