Austria's Leading Industries: An Overview

Austria is a highly developed country with a strong economy and high standard of living. The country's most important industries include food and drink, mechanical and steel engineering, chemical and automotive, electrics and electronics, and wood, pulp and paper. Tourism is also a key sector, with international tourism being the most important part of the national economy alongside a highly developed industry. Austria's economy is dominated by small and medium-sized enterprises, and the country has attracted foreign investors due to its access to the European Single Market and proximity to aspiring economies of the European Union.

Food and Drink

The food sector employs over 27,000 people in Austria, with major segments including food-processing sectors like slaughterhouses and dairy farms, agriculture, and food trade. Additionally, there are brewing companies, non-alcoholic beverage firms, and gastronomy services.

The innovative manufacturing processes in the food and drink industry, combined with international agricultural trade, help create a diverse range of products. The country's well-developed transport system, including railways, high-speed autobahns, and the Danube River for cargo transport, facilitates the distribution of these goods.

Austria's agricultural sector has undergone substantial reform under the EU's Common Agricultural Policy (CAP). While Austrian farmers provide about 80% of domestic food requirements, agricultural contributions to GDP have declined since 1950 to less than 3%. More than 91% of Austrian-produced food is consumed by the population, with wheat and corn being the primary exports.

The country's fertile Alpine lowlands are used for growing crops, fruits, and grapes. Meadows and pastures for cattle occupy about 57% of agricultural land.

Mechanical and Steel Engineering

Austria's economy is dominated by small and medium-sized enterprises, and the country is known for its strong industrial and manufacturing capabilities. One of the most important industrial sectors in Austria is mechanical and steel engineering.

Mechanical engineering companies in Austria are well-regarded for their expertise in designing and manufacturing high-quality machinery, equipment, and components. They are involved in a diverse range of industries, including automotive, aerospace, energy, and construction. These companies offer a wide range of mechanical engineering services such as prototyping, product development, precision machining, and assembly.

Some of the top mechanical engineering firms in Austria include Andritz AG, AVL List GmbH, Fronius International GmbH, and Voestalpine AG. These companies are at the forefront of adopting cutting-edge technology, innovative solutions, and sustainable practices. They benefit from a highly skilled workforce and a strong emphasis on research and development, enabling them to meet the challenges of the global market.

The automotive industry is a significant consumer of mechanical engineers in Austria and includes well-known companies such as Magna Steyr and BMW. These companies create a steady demand for mechanical engineers in the country. Additionally, the manufacturing industry, ranging from steelmaking to precision engineering, provides numerous vacancies for mechanical engineers in production planning, control, machinery design, and process engineering.

Austria's focus on sustainability is another driving force behind the demand for mechanical engineers, particularly in green technology. Engineers with expertise in renewable energy, waste management, and energy-efficient systems are highly sought after as the country prioritises sustainability.

Overall, mechanical and steel engineering is a vital sector in Austria, contributing significantly to the country's economy and providing numerous career opportunities for mechanical engineers in various industries.

Electronics and Electrics

Austria's electronics and electrics industry is a key driver of future-oriented technologies, including automated driving, the Internet of Things, and Industry 4.0. The industry employs approximately 63,000 people across nearly 200 companies, including large multinational corporations and startups. The country has a world-class ecosystem for microelectronics, with strong links between large research-intensive corporations, technology parks, universities, and universities of applied sciences.

The electronics industry in Austria is particularly strong in the field of Electronic-Based Systems (EBS) and microelectronics, which are integral to a wide range of modern products and services. Austrian companies have a significant presence in the development and manufacturing of electronic components for automobiles, smartphones, and passports. The industry's focus on research and development (R&D) has led to advancements in areas such as materials science, embedded systems, high-frequency technology, and sensor technology.

Austria's central location in Europe, its outstanding research capabilities, and its high quality of life make it an attractive destination for tech startups and established players in the electronics industry. The country has a strong research landscape, with institutions such as Graz University of Technology and Silicon Austria Labs conducting cutting-edge research in EBS and microelectronics. The Austrian Institute of Technology, the country's largest non-university research organisation, also plays a crucial role in R&D by offering specialised research and development partnerships with industry leaders.

The Austrian electronics industry is supported by the government and organisations like the Austrian Business Agency (ABA), which provide financial and site-selection assistance to startups and expanding companies. Additionally, the country's participation in the "Important Project of Common European Interest" (IPCEI) on microelectronics, along with France, Italy, Germany, and the United Kingdom, further strengthens its position in the industry.

Tourism

Austria's tourism sector has an expansive character with high levels of employment and sales figures. The majority of visitors come from Switzerland and Liechtenstein. In recent years, there has been a shift in the demographics of tourists visiting Austria's ski resorts, with more visitors from Eastern Europe, Russia, and the United States.

Austria's well-developed transport system also contributes to the success of its tourism industry. The country has over 6,000 km of railways and about 1,500 km of modern high-speed autobahns. The Danube River is also an important transport route, with an average of about 5 million tons of cargo, including coal, coke, oil, fertilizers, and metals, transported via the river annually.

The country's diverse economic system, high standard of living, and rich cultural heritage, including its famous food and drinks, also make it an attractive destination for international tourists.

Automotive and Chemical

Austria's automotive industry is one of the country's most significant manufacturing industries. In 2020, it had the fourth-highest production value by industry sector and an annual turnover of 10.5 billion euros. The industry is relatively small compared to the rest of Europe, but it is growing. In 2022, the production value of the industry was 28.5 billion euros, with an export quota of around 85%. The automotive industry employs around 200,000 people in Austria, with the majority of these jobs concentrated in the states of Upper Austria and Styria.

Automobile production in Austria includes passenger cars, motorcycles, trucks, and agricultural vehicles. While foreign carmakers, mainly German brands, dominate the market, the manufacturer KTM is headquartered in Austria and produces motorcycles in the country. Over half of vehicle imports and exports, including parts for manufacturing, come from or go to Germany.

Electric vehicle sales are on the rise in Austria, with a steep increase in the number of new battery-electric cars in 2020 and 2021. Environmental awareness, more competitive EV prices, improved battery technology, and accessible charging infrastructure are contributing to the shift towards electric vehicles.

The chemical industry is the fourth largest industrial sector in Austria, generating about 15.4% of industrial added value. In 2023, the chemical sector comprised 231 companies employing 49,429 people. The industry provides about 11.3% of total Austrian industrial employment and 14.5% of R&D expenditure.

Plastics (raw materials and products) made up more than 45% of production by value in 2023, followed by pharmaceuticals (16.8%) and chemicals (13.6%). Agrochemicals accounted for 3.2%. The Austrian chemical industry has a high level of innovation, specialization, and networking among producers, suppliers, and service providers. The country's strategic location in the centre of Europe also contributes to its competitiveness.

Austria's chemical industry experienced a decline in production in 2023, with a 10.4% drop to 18.4 billion euros. However, pharmaceuticals were able to grow by about 15%. Investment in the industry has fluctuated over the last decade and has not yet returned to pre-crisis levels.

The Austrian government has implemented policies to support the chemical industry, such as tax incentives for research and development. The Government Programme is strongly oriented towards the European Green Deal and has set a target to become climate neutral by 2040. As a result, the chemical industry has placed a special emphasis on R&D and innovation in the area of climate policy.

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