According to accountant EY, 30 percent of domestic medium-sized companies assess their business situation negatively. The majority of companies expect the economic situation to deteriorate further. Although the shortage of skilled workers is a concern, the willingness of Salzburg companies to invest is paramount.
The weak economy is putting pressure on local businesses – and they think this will continue for a long time. According to a current survey by accountant EY, 30 percent of medium-sized companies assess their business situation negatively, especially in Lower Austria. Only a fifth of respondents expect the economic situation to improve in the near future. The companies surveyed also indicated that they wanted to save money on investments and new jobs.
Trade is struggling, healthcare is happy
The retail sector is the least satisfied: 24 percent of the entrepreneurs surveyed report a poor business situation. However, in the healthcare sector, more than half of the companies were satisfied with the current economic situation. As far as future expectations are concerned, optimism is growing in the social sector; about 20 percent of companies expect an economic improvement, compared to just nine percent last year.
Shortage of skilled workers “currently the biggest threat to companies”
Only 13 percent of companies surveyed plan to increase their overall investments. “Such a low willingness to invest was last observed during the global financial and economic crisis of 2008/2009,” according to an EY press release. 67 percent of respondents indicate that the lack of qualified personnel currently poses the greatest threat to the development of their own company.
Vienna and Salzburg are looking forward to it most positively
When comparing states, Tyrolean companies (63 percent) assessed their business situation mainly positively, while in Lower Austria it was mainly negative. Over the next six months, companies in Vienna and Salzburg (each around 15 percent) are most likely to want to invest. EY expects a decline in investments for Tyrol, Upper Austria and Burgenland.
Approximately 500 managers of local medium-sized companies with 30 to 20,000 employees were interviewed for the study. The interviews took place in August and September 2024.
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.
