Austrian companies have a positive opinion about Hungary

Austrian companies have a positive opinion about Hungary

HIPA, ADVANTAGE AUSTRIA

ADVANTAGE AUSTRIA (the International Agency of the Austrian Economic Chamber) carried out a public opinion polling examining Hungary as an investment site. The International Agency of the Austrian Economic Chamber carried out a public opinion polling for the first time among Austrian sites in Hungary. Altogether 166 Austrian companies settled in Hungary participated in the polling. The final conclusion: the companies in Hungary are basically optimistic considering the continuity. 81 % of the plants see unchanged or improving development regarding the economic position of Hungary this year.

This tendency is also justified by the 30 years of presence of Leier Hungária Kft. in Hungary as well as its continuous expansion. At the end of July 2017, the Austrian company, which has become a market leader in the manufacturing of building materials in Hungary, announced its investment for development in the value of more than EUR 23 million, affecting 6 out of its 9 sites in Hungary, which was achieved with the involvement of the Hungarian Investment Promotion Agency (HIPA).

43 % of the Austrian companies involved in the survey are manufacturing companies in Hungary, 20% of them are distribution representatives and 37 % are service providers; therefore, it properly reflects the assessment of the situation on part of the Austrian companies present in Hungary. As it turns out from the polling, the majority of the managing directors of the companies settled in Hungary expects an increase in turnover and in the volume of orders this year. Almost 90% indicated that their planned total revenue would stagnate or increase in the future, 89% expects an unchanged or increasing volume of orders, and approximately 90 % expects at least unchanged and increasing utilisation of capacities, while in the next months they mainly expect an unchanged volume of employment. More than half of the companies asked (52%) expects unchanged staff in the next 12 months. Almost one third of the investors asked (31%) indicated that their investments in Hungary would increase.

According to Austrian companies, the major challenge in terms of successful market expansion is still the lack of access to qualified labour force and the lack of qualification of labour force, respectively. The situation of the labour market has now become the key issue of all investors' negotiations. The Hungarian Government makes efforts to establish a more favourable investment climate by supporting the cooperation between institutes of higher education and industrial centres, by extending dual learning and by encouraging labour mobility.

"Austria is the second most important trade partner of Hungary and, with its share of 16.7% projected to the total investments, it is the third largest foreign investor" – explains Jürgen Schreder, trade counsellor of the Austrian Embassy, head of ADVANTAGE AUSTRIA in Budapest, who evaluates the results of the research as a positive feedback.

Another public opinion polling is planned for the autumn of 2017, which will also be carried out by ADVANTAGE AUSTRIA.