After nearly a decade of growth, Austria’s industrial sector was hit hard by the fall-out from the financial crisis. The dependence on exports, a successful formula for so many years, turned into a liability when the global recession led to the cancellation of orders. Machinery makers and car parts suppliers, often closely linked with German producers, were particularly badly affected.
“As it was an imported crisis, the brunt of it was first felt by those companies that are oriented abroad,” says Christian Helmenstein, chief economist of the Association of Industry. “These were the ‘gazelles’ that had done the most to invest in innovation and new plant. But now the pain has spread to other sectors, including even the food industry.”
