The sharp rise in costs, which are a huge disadvantage in international competition, is putting domestic companies under pressure. Efficiency programs are the order of the day. What does that mean for companies in Upper Austria? A look at Rosenbauer, Pierer Mobility, Lenzing, B&R, Palfinger and Polytec.
As energy, logistics, materials and employees have become more expensive, many companies are tightening their belts. If you want to save money and become more efficient at the same time, read here.
- Rosenbauer: Sebastian Wolf, CEO of the Leonding-based fire brigade supplier, was recently pleased with the “operational turnaround” and a “record order level”. The programs that started in 2022 are working: production costs have been reduced, vehicle prices have been increased, now it’s all about completing the vehicles faster. With the addition of Robau, a company of Stefan Pierer, Mark Mateschitz and Raiffeisen Oberösterreich, equity will be increased by 119 million euros. Robau will also become the new majority shareholder.
- Pierer Mobility: In December 2023, the motorcycle manufacturer (KTM, GasGas, Husqvarna and MV Agusta) announced the relocation of parts of production and development. More than 300 employees had to leave. Nevertheless, the Mattighofen-based company was in the red in the first half of 2024. Now another 200 jobs, this time in administration, will be lost. Development processes must be streamlined and accelerated.
- Lenzing AG: The loss in 2023 was minus 593 million euros. Walter Bickel, the fiber producer’s own management, has been working on changes at the fiber producer since April. He is promoting the performance program, which has been running for a long time and is expected to reduce costs by 100 million euros per year from the end of 2025. Personnel costs must be reduced by 30 million euros. Apparently, administration is increasingly becoming the target. Bickel: “Of course, it’s about becoming leaner.” As of today, there is a new boss in Rohit Aggarwal.
- B&R: Due to the huge demand, the automation specialist in Eggelsberg even introduced an additional weekend shift until February 2024 – this was limited to one year. Now we are struggling with a drop in order numbers. As part of a cost reduction program, “all steps are being examined to accelerate innovation and production”. Up to 240 administrative jobs will be lost in Austria by the end of the year.
- Thimble: Because demand is weakening in Scandinavia, Germany, France and China, as well as in the construction sector, and stocks are therefore too high, the specialist for cranes, work platforms and lifting solutions has put on the brakes and is producing less. A measure that also affected the factory in Lengau: the company holiday in the summer lasted a week longer than usual.
- Polytec: The unstable demand development from the automotive industry is putting pressure on the plastics processor from Hörsching, which reported a negative result after taxes for the first half of the year. Intensive work is being done on improvements; two plants in Germany in particular are on the radar. Systems delivered too late had led to organizational problems and unsatisfactory revenues.
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.
