Taxes and duties, still sluggish orders, bureaucracy and a shortage of skilled workers are putting a strain on companies – BSIC industries are pioneers in the use of AI
Correction to OTS_20240328_OTS0061
Vienna (OTS) – Angelika Sery-Froschauer, chairwoman of the Federal Information and Consulting Division (BSIC) in the Austrian Economic Chamber, describes the current mood among knowledge-based service providers as cautiously optimistic. The industry with 142,000 companies generated sales of around 73.5 billion euros last year. As the current results of the economic survey conducted by SME Research Austria among more than 3,600 companies show, sales in 2023 were nominally 3% above the previous year’s level. Adjusted for prices, however, there is a decline of 1.7%. Around 268,300 employees were employed in BSIC companies in 2023, which corresponds to an increase of 2.4% compared to the previous year. “After a tough and long dry spell in recent years, confidence is slowly emerging again, even if the order situation is still sluggish. We hope that the end of the trough has been reached,” emphasizes Sery-Froschauer.
This is also reflected in the results of the SME survey. Accordingly, the companies are reporting a satisfactory order situation at the beginning of 2024. For the full year 2024, the companies expect sales growth and plan to increase investments.
Biggest challenges: taxes and duties, bureaucracy and weak demand
In addition to taxes and duties (65% of companies) and bureaucracy and administration (59%), weak customer demand (56%), intense competition (50%) and labor costs (49%) represent the greatest challenges for companies in the next one to two years. But the ongoing shortage of work and skilled workers is also causing problems for many companies (37%).
Sery-Froschauer: “Especially in a more than volatile situation, our companies need the best possible framework conditions. In view of the latest economic forecasts from the economic research institutes, which do not expect a noticeable upswing until 2025, the necessary steps should be taken now to relieve the burden on companies and sustainably strengthen the business location.” The top industry spokesperson sees a need for action, especially with regard to the high non-wage labor costs and the excessive bureaucracy.
A shortage of skilled workers is causing problems for companies – Sery: Take countermeasures now!
According to the current survey, BSIC companies plan to increase their employment levels by 7.9% in 2024. However, given the ongoing shortage of work and skilled workers, appropriate measures are urgently needed, such as more incentives to work longer. In addition, full-time work must be given tax advantages over part-time work, says Sery-Froschauer and specifies: “In the IT sector alone, the Austrian economy is currently lacking 28,000 skilled workers. As a result, 4.9 billion euros in added value are lost every year, and the trend is rising. There is an urgent need to take countermeasures here.”
Knowledge-based service providers rely on AI
The BSIC companies are pioneers in the domestic economy when it comes to using AI, as the survey makes clear. Accordingly, 46% of companies in the information and consulting sector are already using artificial intelligence (AI) in their company (19%) or are planning and testing the use of AI (27%). A pleasing result for the entire location, because “AI is here to stay,” says Sery-Froschauer: “Research, technology and innovation are central levers and a turbocharger for productivity and competitiveness. Our member companies are usually the silent but extremely important helpers and companions in the background. As multipliers and important drivers of innovation in the local economy, they support local companies across all sectors and develop perspectives for future strategies.”
According to Sery-Froschauer, AI and digitalization, as the key to entrepreneurial success and prosperity in the future, go hand in hand with cybersecurity, another core topic of the BSIC: “Cybersecurity and cyberresilience are – not least due to the terrible war in Ukraine – moved more into focus. The topic affects us all and has become a critical factor for the location and society.” What is now crucial is to minimize risks in order to be able to fully exploit the opportunities offered by digitalization. Here too, Sery-Froschauer sees the industry as a crucial “enabler” of the local economy.
The information and consulting division in the WKÖ includes the specialist associations for waste disposal and resource management, financial service providers, advertising and market communication, management consulting, accounting and information technology, engineering offices, printing, real estate and asset trustees, book and media industries, insurance brokers and consultants in insurance matters and telecommunications. and broadcasting companies. (PWK122/ES)
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