{"id":88931,"date":"2025-06-05T06:27:12","date_gmt":"2025-06-05T06:27:12","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/austrias-wood-industry-squeezed-by-weak-economy-and-construction-demand\/"},"modified":"2025-09-18T17:30:39","modified_gmt":"2025-09-18T17:30:39","slug":"austrias-wood-industry-squeezed-by-weak-economy-and-construction-demand","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/austrias-wood-industry-squeezed-by-weak-economy-and-construction-demand\/","title":{"rendered":"Austria\u2019s wood industry squeezed by weak economy and construction demand"},"content":{"rendered":"

<\/span>Austria's timber industry held its ground in 2024 in a once again challenging economic environment. The ongoing weakness of the construction sector is particularly burdening domestic companies. Sales of manufactured goods by the 1,323 member companies amounted to EUR 9.28 billion in 2024 \u2013 a decline of 5 percent compared to the previous year. Compared to 2022, the decline is even more than 22 percent. \"This recession is leaving its mark on our industry,\" explains Herbert J\u00f6bstl, Chairman of the Austrian Timber Industry Association, warning of further uncertainties: \"The effects of the unpredictable US trade policy and possible counter-reactions are not even reflected in these data.\" The Austrian timber industry is traditionally strong in exports and generated a foreign trade surplus of around EUR 1.4 billion in 2024, 7 percent less than the previous year. Compared to 2022, the decline is 23 percent. \u201cSince our main trading partners are located in the European Union, it is crucial for our companies that there is a level playing field in Europe, especially with regard to energy prices and transport costs,\u201d says J\u00f6bstl.<\/p>\n

Secure jobs require competitiveness<\/strong><\/p>\n

The economic pressure is now also noticeable in the number of employees. After a long period of stability, employment in the industry fell by 7 percent in 2024. \"Our companies are trying everything to avoid extensive staff cuts. But that won't last forever. Companies have to generate income to secure jobs in the long term,\" emphasizes Erlfried Taurer, deputy chairman and designated chairman of the trade association. It is important that Austria's competitiveness as a business location improves again. \"Austria is not only the winner of the Eurovision Song Contest, but unfortunately also ranks first in the EU for unit labor costs,\" emphasizes Taurer, demanding: \"Austria's price competitiveness must improve again. That means: lower non-wage labor costs, lower energy prices, and a significant reduction in bureaucracy.\"<\/p>\n

Market outlook with confidence<\/strong><\/p>\n

Despite the ongoing weakness of the construction industry and the subdued economic forecasts, the timber industry is not pessimistic. Hopes are particularly high in timber construction. Here, the order situation is stable, and the production of timber construction elements is showing initial signs of recovery. \"After the major downturn of the past two years, we have passed the low point, and things could soon be looking up again,\" says Herbert J\u00f6bstl optimistically, explaining: \"Financing costs for construction projects are falling, and the government of our large neighbor, Germany, intends to invest extensively in infrastructure. This can help us. In addition, Brussels is finally talking about competitiveness again; now it's time to act accordingly.\"<\/p>\n

Expand and actively shape the forest carbon sink<\/strong><\/p>\n

\"Active forest management and increased use of wood\" are, for J\u00f6bstl, the conclusions drawn from reports that forests in Austria have become a source of CO\u2082. \"Through constant growth in recent decades, Austria's forests have built up very large wood reserves. They have aged and are now particularly vulnerable to the problems of climate change, such as storms and droughts, including bark beetles. Therefore, it is more necessary than ever to actively manage the forests and rejuvenate the stands. This is how we ensure that our forests become climate-fit, remain vital, and grow continuously,\" says J\u00f6bstl. The use of wood is the order of the day. \"It's crucial to harvest older trees in a timely manner and continue to capture the stored carbon in wood products. While the carbon from a harvested tree remains captured in a wooden building for decades, a young tree grows back in the forest and absorbs more CO\u2082. In this way, we create a second forest that protects the climate and guarantees jobs. Wood use and active forestry are powerful levers for counteracting climate change,\" emphasizes J\u00f6bstl.<\/p>\n

EU Deforestation Regulation: Bureaucracy without benefit<\/strong><\/p>\n

The EU Deforestation Regulation (EUDR) has long been a source of frustration and uncertainty. It requires companies to demonstrate that there is no risk of deforestation at every stage of processing wood and wood products \u2013 from raw materials to the finished product. \"The EUDR affects not only imports, but also manufacturing, trade, and exports within the EU. This means that our companies must continuously prove their freedom from deforestation,\" explains Heinrich Sigmund, Managing Director of the German Timber Industry Association.<\/p>\n

In practice, this leads to an unfeasible bureaucratic burden. \"The wood value chain was simply not understood,\" Sigmund continues. \"Due to mixing in storage areas and during further processing, thousands of reference numbers would have to be managed and passed on for every processing step, every delivery, every product. The flood of data is neither verifiable nor effective.\" A study from Finland estimates the costs of implementation there alone at over \u20ac200 million, and \u20ac65 million annually on an ongoing basis. Across Europe, a billion-dollar wasteland with no added value is looming.<\/p>\n

\"In its current form, the EUDR cannot be implemented with legal certainty and is completely disproportionate,\" emphasizes Deputy Chairman Erlfried Taurer. Attempts by the EU Commission to improve the situation through accompanying documents are ineffective and fail to create legal certainty. \"After more than two years, there is no practical implementation model. Therefore, we demand that the EUDR be included in a future 'omnibus' procedure to reduce bureaucracy, be radically simplified, or\u2014even better\u2014be abolished entirely. This will enable the EU Commission to fulfill its promise to strengthen Europe's competitiveness,\" emphasizes Taurer.<\/p>\n

Alternatives to deforestation<\/strong><\/p>\n

The industry supports the EUDR's goal of curbing global deforestation. Chairman Herbert J\u00f6bstl proposes concrete alternatives: \"It is not necessary to harass the entire timber industry with the EUDR. A new risk category, 'insignificant risk,' is needed for countries without deforestation risk \u2013 such as Austria.\" In these countries, documentation as previously required under the EU Timber Regulation (EUTR) is sufficient. This idea gained a majority in the European Parliament in the fall of 2024. The idea is also included in the German federal government's coalition agreement and is supported by Federal Minister Totschnig and other states in the Council of Ministers.<\/p>\n

Risk-based controls instead of blanket monitoring should also help combat deforestation in a targeted manner. \"Deforestation occurs outside of Europe. Nevertheless, our companies here should demonstrate that their supply chains are deforestation-free,\" J\u00f6bstl summarizes and suggests: \"Instead of blanket monitoring, we need fact-based risk assessments and targeted controls of specific products, regions, or actors. EU import regulations for timber already exist, and our forests are comprehensively protected by forestry laws and environmental regulations.\"<\/p>\n

Professional association with new executive board<\/strong><\/p>\n

Following the 2025 Chamber of Commerce elections, the leadership of the Austrian Wood Industry Association will change. The designated executive committee consists of Dr. Erlfried Taurer (Chairman and spokesperson for the panel industry), Markus Schm\u00f6lzer (Deputy Chairman and Chairman of the sawmill industry), and Dr. Georg Emprechtinger (Deputy Chairman and Chairman of the furniture industry). Heinrich Sigmund will remain the managing director of the association.<\/p>\n

The election of the Executive Board will take place during the constitutive meeting of the Association Committee on 3 June 2025, starting at 2 p.m.<\/p>","protected":false},"excerpt":{"rendered":"

Austria’s timber industry held its ground in 2024 in a once again challenging economic environment. The ongoing weakness of the construction sector is particularly burdening domestic companies. Sales of manufactured goods by the 1,323 member companies amounted to EUR 9.28 … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":50557,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","topic-wood-construction","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\nAustria\u2019s wood industry squeezed by weak economy and construction demand - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/austrias-wood-industry-squeezed-by-weak-economy-and-construction-demand\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Austria\u2019s wood industry squeezed by weak economy and construction demand - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Austria's timber industry held its ground in 2024 in a once again challenging economic environment. 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