Gloomy outlook – “Every fourth company is threatened with standstill” – Upper Austria

Extreme inflation is threatening the existence of more and more companies. The Federation of Industry is now putting pressure on the federal government.

The IV Oberösterreich asked large companies as well as small and medium-sized enterprises – with sobering results: The exploding energy prices have already hit half of the companies.

“The decisive question is whether the companies can currently pass on the increased costs,” explains IV Managing Director Joachim Haindl-Grutsch. The bitter answer: only about a quarter are able to do so. 60 percent succeed only partially, 15 percent not at all.

According to the Federation of Industry, cost-covering operations are no longer possible for around 25 percent of companies. “For most of them, the profit margins are falling rapidly,” says Haindl-Grutsch.

This number will continue to rise sharply in the coming months when the energy price hedges expire. “Orders are already being lost due to a lack of competitiveness, sales are collapsing,” reports the managing director.

And what effects does the cost pressure have on production? About half of the companies have already partially restricted them or are planning to do so if the current price level continues. “An extended Christmas break is already being considered,” said Haindl-Grutsch.

“One can assume that without rapid help, supply chains will tear again.” Joachim Haindl-Grutsch gives a gloomy outlook.

The economic prognosis of the IV-OÖ managing director is more than sobering.IV Upper Austria

A quarter of the companies surveyed do not even rule out a complete halt to production. “One can assume that without quick help, supply chains will break again,” paints the industry representative a bleak picture.

The survey shows more than clearly how critical the coming months will be. Haindl-Grutsch appeals to politicians: At the European level, the merit order (where the electricity tariff is determined by the most expensive power plant, note), the decoupling of electricity and gas prices and a model for containing gas prices should be adapted.

Urgent appeal to the federal government

At the national level, the IV insists that the government act quickly. You must now act quickly and decide on energy cost subsidies and electricity price compensation for companies in a sufficient amount and for a sufficient period of time.

“The time pressure is enormous. Every week counts!” Haindl-Grutsch warns. If there are restrictions and standstills in production, the topic of short-time work must also be used again as a bridging instrument.

Nav Account tob time 09/23/2022, 05:00| Act: 09/23/2022, 05:00

The article is in German

Tags: Gloomy outlook fourth company threatened standstill Upper Austria

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