High cost pressure

How companies can save now and improve at the same time

From Pierer Mobility to Palfinger, Rosenbauer, Lenzing and B&R: cost pressure is high and belts have been tightened.

(Bild: Krone KREATIV/Harald Dostal, Markus Wenzel (3), FotoKerschi)

The sharp rise in costs, which is a huge disadvantage in international competition, is putting domestic companies under pressure. Efficiency programs are the order of the day. What does this mean for companies in Upper Austria? A look at Rosenbauer, Pierer Mobility, Lenzing, B&R, Palfinger and Polytec.

Because energy, logistics, materials and employees have become more expensive, many companies are currently tightening their belts. Read on to find out who is making savings and who wants to become more efficient.

• Rosenbauer: Sebastian Wolf, CEO of the firefighting equipment manufacturer from Leonding, was recently pleased with the "operational turnaround" and a "record order backlog". The programs launched in 2022 are paying off: Manufacturing costs have been reduced, prices for vehicles have been increased, and now the aim is to complete the vehicles more quickly. The investment by Robau, a company owned by Stefan Pierer, Mark Mateschitz and Raiffeisen Upper Austria, will increase equity by 119 million euros. Robau also becomes the new majority shareholder.

• Pierer Mobility: In December 2023, the motorcycle manufacturer (KTM, GasGas, Husqvarna and MV Agusta) announced the relocation of parts of its production and development. More than 300 employees had to leave. Despite this, the Mattighofen-based company was still in the red in the first half of 2024. Now another 200 jobs are being cut, this time in administration. Development processes are to be streamlined and accelerated.

Demanded: Sebastian Wolf (Rosenbauer), Rohit Aggarwal (Lenzing), Jörg Theis (B&R) and Stefan Pierer (Pierer Mobility).

(Bild: Krone KREATIV/Harald Dostal, Markus Wenzel (2), Lenzing AG)

• Lenzing AG: The loss for 2023 amounted to minus 593 million euros. Walter Bickel has been the fiber producer's own Chief Change Officer since April. He is pushing ahead with the performance program, which has already been running for some time and aims to reduce costs by EUR 100 million per year from the end of 2025. Personnel costs are to be reduced by 30 million euros. The administration is obviously being increasingly targeted. Bickel: "Of course, the aim is to make us leaner." Rohit Aggarwal is the new boss as of today.

• B&R: Due to the enormous demand, the automation specialist in Eggelsberg had even introduced an additional weekend shift until February 2024 - this was limited to one year. Now the company is struggling with falling order numbers. As part of a cost-cutting program, "all steps are being examined to accelerate innovation and production". Up to 240 jobs will be lost in administration in Austria by the end of the year.

• Palfinger: As demand in Scandinavia, Germany, France and China is weakening alongside the construction industry, meaning that stock levels are too high, the specialist for cranes, work platforms and lifting solutions has stepped on the brakes and is producing less. A measure that also affected the plant in Lengau: the summer vacation lasted a week longer than normal.

• Polytec: The unstable development of demand from the automotive industry is taking its toll on the plastics processor from Hörsching, which reported a negative result after tax for the first half of the year. The company is working intensively on improvements - two plants in Germany in particular are on the radar. Delayed deliveries of equipment had led to organizational problems and an unsatisfactory earnings situation.