19 May 2025
,Austria
The timber construction industry in Austria is facing economic challenges, as the latest figures clearly show. Nominal sales in the industry fell by 3.7% compared to the previous year. This development is reflected in the results of many companies, with around 39% of companies recording an average decline in sales of 15.7%. Insights show that while some companies were able to record increases in sales, the majority are struggling with declining figures.
Despite the disappointing sales figures compared to the previous year, nominal sales growth is still around 4% above the 2019 level. However, this growth is deceptive, as price-adjusted figures show a significant real decline of 8.6% in 2024. This means that there has been a cumulative real decline of 27% since 2019. A comparison with Austria's gross domestic product reveals another weak point: while the Austrian economy virtually stagnated and was only slightly above the 2019 level, the slump in timber construction is all the more significant.
The increased costs have forced many companies to adjust their prices. As a result, 71% of timber construction companies increased their sales prices by an average of 4.9% in 2024. This happened in an environment where the inflation rate was 2.9%, which highlights the challenges posed by increased production and operating costs.
Another critical aspect is the export ratio, which shows a significant decline from 5% in 2023 to only 2.2% of sales in 2024. This figure shows that export activity is concentrated in a small number of companies, which affects the overall picture of the industry. The declines in the export ratio underscore the need to further develop international markets and strengthen competitiveness abroad.
On a positive note, almost half of the companies (49%) made investments to remain future-proof despite the economic challenges. These investments could prove crucial in strengthening innovation capacity and remaining competitive in the long term.
The development of timber construction shows how important it is to adapt to economic conditions and strategically realign in order to effectively meet the challenges facing the industry. The combination of declining sales, price adjustments, and weak export momentum makes it necessary to focus on structural changes that make sense at both the national and international levels. Focusing on investment and striving for efficiency gains could be the key to overcoming the current crisis and putting timber construction in Austria back on a sustainable growth path.
