Aircraft supplier FACC is growing thanks to the booming aviation industry. Now the sharp rise in personnel costs is also forcing the residents of Innviertel to put on the brakes. The workforce will be expanded further, but not nearly as much. Make the existing workforce more efficient.
Profitability increased by 51 percent, the number of employees grew by a further 265 employees and there was also further growth in the order portfolio – despite a very good half-year balance sheet, aircraft supplier FACC is now putting on the brakes.
“The curve is getting a little flatter”
“We will be adding more new employees towards the end of the year, but the curve will be a bit flatter,” says boss Robert Machtlinger. After almost 1,200 employees have come on board since autumn 2021 and the aviation sector continues to flourish, the huge increases in personnel costs, which are mainly due to the high collective agreements concluded in recent years, are now also having a dampening effect on the people from Innviertel.
“Today we are back to the same personnel level as before Covid-19, with around 3,700 employees. Sales are also almost where they were before. Only personnel costs are 50 million euros higher today,” explains Machtlinger.
“Customers all over the world no longer pay us because we produce in Austria”
“In recent years, we have come under considerable pressure on the fixed costs and wage costs side,” adds CFO Florian Heindl. “And our global customers no longer pay us because we produce in Austria,” says Machtlinger.
The FACC boss cites innovation, automation, digitalisation and increased efficiency in all areas as the key to remaining competitive. The latter means turning screws in production to increase construction speed without having to build up a lot of extra staff: “Unlike many other industries, we have the wonderful environment in which we can grow.”
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.
