Austrian electrical industry sees recovery amid sector divide

The Austrian electrical and electronics industry saw a slight recovery in 2025 following two years of recession. According to the Economic Chamber's industry association (FEEI), production value rose by 2.7 percent to 23.6 billion euros, and incoming orders increased by 14.5 percent to approximately 27 billion euros.

Despite these figures, FEEI Chairman Wolfgang Hesoun warned of a deep divide within the sector. While companies specializing in artificial intelligence and energy, such as Infineon and AT&S, are performing well, small and medium-sized enterprises supplying German automakers are under significant pressure. Hesoun described the situation by stating, “one is sweating, the other is freezing.”

The industry, which maintains an export rate of nearly 85 percent, employed approximately 72,000 people in Austria by the end of 2025. However, the sector has faced job losses, with roughly 2,300 positions cut since the peak in late 2023, including 1,500 cuts in 2025 alone. Hesoun also expressed pessimism regarding Europe's industrial model, noting that countries like China have become technological competitors in areas such as electric vehicles.