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Vorarlbergs building industry in trouble

The building industry of Austrias Western province Vorarlberg is in deep trouble. The managers of Vorarlbergs building enterprises estimates the order situation for 2009 in a snape poll of the economy magazine “Wirtschaftsblatt” as “less optimistic”.

Already last year, 36 percent of all building enterprises in Vorarlberg had a worser result as in 2007. The average decrease of orders came to 6 percent. This year the average decrease in orders should amount about 20 percent.

Especially the residential building suffers a lot under the present situation. Its high price segment has to face a supersaturation of the market, and the low price segment has problems with statutory provisions of the government. Such tough targets turn out to be true cost pusher.

The international financial crisis is an additional damper. Credits became more expensive. Foreign currency loans are not that attractive anymore.

Another negative influences are statutory provisions like fire prevention, ecology, and accessibility. These are important, but increase the building costs in enourmos heights. The industry hopes that massive immigration to Vorarlberg will solve the problem in the near future.


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