Preview for 2024

Construction industry in Tyrol: “The pressure continues to rise”

The construction industry in Tyrol is facing pressure despite the federal government's construction package.

(Bild: Birbaumer Christof)

Despite the construction package announced by the federal government, the mood in the construction industry in Tyrol continues to be rather poor. "The pressure is increasing, only the large companies are in a slightly positive mood," says Anton Rieder, guild master of the Tyrolean construction industry. "For this year, we are expecting a contraction of 2.4 percent in nominal terms and therefore around six percent in real terms."

Expectations are particularly poor in residential construction (-19.7%) and building construction (-9.1%), while civil engineering is expected to grow by 4.7%. The mood in tunnel construction is also positive with an expected increase of 13%. In a survey of more than 150 companies across all construction sectors, 27% are in a bad or very bad mood, while 40% are optimistic.

Rieder adds: "Some companies didn't even submit the questionnaire because they didn't want to worsen the mood even further."

We welcome the federal government's construction package in principle, but we need more flexibility in housing subsidies based on the Vorarlberg model.

Anton Rieder

Projects are being postponed due to cost pressure
Equally worrying: more than half of those surveyed stated that they had postponed up to four projects due to cost pressure. "And more than 70 percent criticize excessively long approval procedures." Here, Rieder calls for South Tyrol to be taken as an example: "After 14 days, the complete submission of the documents is confirmed, after 90 days there is either a positive or negative building permit."

The situation is particularly bleak in residential construction.

(Bild: Klemens Groh, Krone KREATIV)

"Look closely at where it works" in the construction package
There is praise for the federal government's construction package. "We welcome it in principle, but we still have to look closely at where it is effective." However, Rieder is calling for more flexibility in housing subsidies based on the Vorarlberg model and a 25 percent increase in income limits. State Building Director Christian Molzer also speaks of "not an easy year", "everyone is talking about a recession". However, he sees "civil engineering as a stable guarantor and there is an increase in renovations".

After the very good winter season, many want to invest in expansion and renovation. This is also boosting the construction industry a little again.

Mario Gerber

Bild: Christof Birbaumer

Provincial Councillor for Economic Affairs also hopes for the tourism industry
Meanwhile, Provincial Councillor for Economic Affairs Mario Gerber (ÖVP) points to around 309 million euros that flowed into the construction industry in the form of subsidies and grants last year. "I am encouraged by the positive figures from tourism. After this good winter season, many want to invest in expansion and renovation this year. This is boosting the industry."