Austria’s Engine Industry on the Rise

Austria’s Engine Industry on the Rise

Image: APA/Jorj Konstantinov, Geopho

 

As car manufacturers scale back production, Austria’s large engine industry is thriving, having grown by 5% last year and expected to reach 6% this year.

Despite the positive outlook for orders, companies in the sector are urging authorities to tackle rising labour costs.

High energy prices in Europe have further undermined the industry’s competitiveness against rivals in the US and China. Like many other sectors, it is dealing with a shortage of skilled workers, with demand currently met by only three-quarters of the required staff.

The industry employs around 11,200 people and generates an annual turnover of €2.55 billion, with exports accounting for 90% of sales. The primary markets for large engines are Western Europe, the USA, and Asia, with Russia and Ukraine playing a minimal role, even before the invasion of Ukraine. Large corporations dominate the sector, with small and medium-sized businesses contributing just 2% of turnover. Most of the workforce is based in Tyrol and Vienna, while Styria is home to a specialised cluster.

Large engines, with a bore diameter of 15 cm or more, are used in power generation, shipping, trains, and mining. While the car industry moves towards electric vehicles, large engines are still some way from making the shift. Instead, alternatives to diesel, such as hydrogen, methanol, and ammonia, are being explored.

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