Europe as a business location: Austria is well positioned
The almost global lockdown in the spring of this year has shown many companies how risky it is to be dependent on a few or one supplier at the other end of the world. This has led CEOs to rethink their strategies. In a recent survey, two-thirds of the managers interviewed assume that Europe will gain in importance as a production location as a consequence of the coronavirus. Accordingly, two-thirds of the business leaders expect higher investments in the production location of Europe. 300 managing directors and CEOs of companies in Germany, Austria, Switzerland, Italy and Great Britain with more than 250 employees were interviewed on behalf of ABA – Invest in Austria.
Most important business location factors
The majority of the top managers expect companies to strive for a diversification of their supply chains in response to their experiences during the coronavirus crisis. The cost factor has tended to lose in importance in selecting a business location. In the minds of the CEOs, unit labour costs as well as economic growth and good transport connections have faded somewhat into the background as crucial factors determining the choice of a production and business location.
From the point of view of the European managers, the degree of digitalisation and the overall research quota of the countries are the business location factors that will gain in importance the most in the future. Other key factors impacting future decisions are energy supply security, the availability of good skilled labour as well as income and corporate tax rates. The managers believe the planned climate protection measures will be a driving force for the economy. Austria is in the forefront when it comes to renewable energies.
Business location of the future
Accordingly, we are witnessing a change in the corporate mindset. Unit labour costs are playing a less important role, whereas greater importance is being attached to the diversification of risks. Europe now has the opportunity to become increasingly significant as a production location. 95 percent of the managers surveyed from the DACH region already regard Austria today as a business location of the future, which scores points thanks to its business-oriented educational system. Vocational and higher technical schools train highly qualified technical professionals, who are definitely less expensive to employ than university graduates thus offering decisive advantages to companies involved in production and research.
Austria is well positioned
From the point of view of the European managers, political and social stability is of particular importance in addition to energy supply security. I believe Austria has been upgraded in the mix of business location factors thanks to the growing importance placed upon factors such as stability and security. Austria offers the best conditions for profitable investments in the future thanks to the second highest research to GDP rate within the EU and the digitalisation drive for companies. ABA – Invest in Austria will be happy to inform you about other business location factors and will provide professional support to you at no charge in setting up business operations in Austria.
Read more about the topic of Research and Development in Austria.