The metal technology industry (MTI) is in its third year of recession and continues to face immense pressure. Every second company expects a negative operating result this year, and half of the firms are cutting jobs, according to the annual MTI economic survey conducted among its members. “This is a dramatic situation,” said Christian Knill, chairman of the MTI trade association.
The metal technology industry, which traditionally kicks off the autumn wage negotiations, generates a production value of €45 billion—equivalent to a quarter of Austria’s industrial output—and employs 135,000 people. That represents around 30 percent of industrial jobs, according to its own figures. Since mid-2023, approximately 8,000 jobs have been cut in the MTI sector, according to industry estimates.
Production dropped 7.8 percent in real terms
In 2024, production value decreased by 7.8 percent in real terms; including 2023, the decline amounts to nearly 16 percent. For this year, a decline of 3.6 percent is expected. Exports dropped by 7.3 percent in real terms in 2024, and the number of employees shrank by 2.7 percent. “We’ve had five recession years in the past seven,” Knill stated on Thursday. Since the financial crisis of 2008, there has been no significant growth.
And that’s without accounting for trade tensions with the U.S., Austria’s second-most important export destination for MTI goods. Exports to the U.S. were still up 9 percent in 2024 versus 2023. Germany, the top export partner, saw a nearly 12 percent plunge, while China, now the third-largest, grew by 14 percent. Still, exports to China totaled just €2 billion—half the volume shipped to the U.S.
According to a rapid MTI survey conducted in May 2025, over 80 percent of the 1,100 metal technology firms report negative effects from U.S. trade policy. “No tariffs at all would be best,” Knill said at a press conference.
Demand has stabilized at a low level
For this year, MTI companies expect production to shrink by 3.6 percent. Demand has barely recovered and has only recently stabilized at a low level. The metalware sector is particularly suffering.
Given all the negative indicators, a tough autumn wage round is expected. “Tariff wages in Austria are galloping ahead,” warned MTI. Labor costs per unit are rising 27 percent faster than in the Eurozone, the industry noted, citing Eurostat data. Half of all companies are considering relocating, especially to Eastern Europe.
“The location has become too expensive,” Knill concluded. The consequences are a loss of competitiveness, reduced investments, and job cuts. What does he hope for from the new federal government beyond what’s already known? The most urgent need is a reduction in non-wage labor costs, particularly concerning the family equalization fund. Electricity price compensation would also help, as would swift implementation of EU-driven deregulation measures.
Autumn wage talks: Industry looks to the Eurozone for guidance
Asked about the upcoming autumn wage negotiations, industry head Knill said the ideal outcome would be a lower wage deal than in the Eurozone. He acknowledged that pension increases don’t help the collective bargaining process. But primarily, he said, that’s a union concern; for industry, the pension hikes are irrelevant.
In times of major budget gaps, a functioning metal technology industry is all the more important, emphasized Herwig Schneider, head of the Institute for Industrial Research. He projected that MTI will contribute €10.4 billion in taxes and levies this year alone.
