Austrian manufacturers of paper and cardboard products have come through the pandemic year 2020 in a stable position. While the Austrian economy suffered a massive slump in 2020 (minus 6.6 per cent), the Propak industry significantly outperformed GDP.
"With a slight decline of -0.2 per cent in value (EUR 2.4 billion) and +1.6 per cent in volume (1.2 million tonnes), the industry is still in a good position. Robust through the first year of the pandemic controlled," says Propak Chairman Georg-Dieter Fischer. "There are many reasons for this: the high level of creativity of our companies, the relevance at the point of sale and the sustainability of our products and service solutions."
Online shopping is a growing trend and driver, particularly in the packaging sector. With 78 per cent the export again responsible for the Propak economy. The companies generate three out of four euros abroad. In total, the industry exported 792,000 tonnes (+0.3%) of paper and cardboard products worth 1.85 billion euros (-2.1%).
This was offset by an import volume of 546,000 tonnes (-3.0%) worth 1.24 billion euros (-7.7%). The Stable economic development in the sector resulted in an equally favourable employment situation. Due to the stability of the sector, the number of employees fell only slightly to 8,710 (-1.6%). Short-time working only had to be utilised in isolated cases across the industry.
Growth prospects for 2021 and 2022 significantly improved
The economic analysis for 2020 shows very clearly that global economic crises hit small, highly interconnected economies like Austria particularly hard. "The collapse of international supply chains and extensive travel restrictions have led to some dramatic decline in export revenues", says Doris Ritzberger-Grünwald, Director of the OeNB's Economics Department.
However, she also confirms: "The production of goods made from paper and cardboard has a Comparatively good development taken. The employment situation in the Propak industry is also more robust than that of the industry as a whole." The IMF and European Commission's growth outlook for 2021 (3.5%) and 2022 (over 4%) has recently improved surprisingly significantly.
Security of supply through the circular economy
"Products made of paper and cardboard are a clear commitment to sustainability," says Andreas Blaschke, CEO of Mayr-Melnhof Packaging International. "The proportion of recycled material is 75 per cent on average, the Recycling rate for paper and cardboard packaging in Austria as high as 90 per cent and is therefore already well above the EU target of 75 per cent by 2025. However, the functioning of waste paper collection is also a key to security of supply." The shortage of raw materials poses challenges for the industry. Despite some significant delays in delivery and a few supply failures, the supply of customers and end consumers is secure.
Overbureaucratisation and ideology
However, the industry is looking with concern about the forthcoming amendment to the Waste Management Act (AWG). "In addition to a massive increase in bureaucracy, there is a threat of huge encroachments on fundamental freedoms, not only for the economy but also for consumers," warns Blaschke. "The unthinking promotion of reusable packaging at the expense of our recycled packaging is particularly worrying."
Despite all the studies that prove beyond doubt that there are no clear advantages in favour of one system, the Ministry of Climate Protection and its advisors want to go as far as price interventions to push the reusable ideology. And Blaschke appeals: "Paper fibres can be recycled up to 25 times, which can definitely be seen as reusable at the material level."
Propak as an employer: Specialists wanted
"The coronavirus pandemic has Shortage of skilled labour in our industry is only temporarily muted," reports Marko Bill Schuster, COO of Mondi Functional Paper and Films. Despite high unemployment, 80 per cent of companies stated in a recent survey that the availability of skilled workers in particular is difficult, while 20 per cent are currently unable to fill qualified jobs. "We're getting by, but it's getting more difficult," says Schuster.
Ready for the upswing
According to the majority of companies Propak Survey for 2021 with a fundamentally solid growthHowever, this is expected to be potentially flatter compared to the overall economy - as past cycles have shown. However, companies are facing high pressure on value creation due to enormous cost inflation - and not just for raw materials.
[infotext icon]Der Fachverband Propak und die Vereinigung Propak Austria repräsentieren die industriellen Hersteller von Produkten aus Papier und Karton in Österreich. 85 Unternehmen verarbeiten und veredeln mit rund 8.710 Mitarbeiter:innen jährlich rund 1,2 Mio. Tonnen Papier und Karton zu Wellpappe, Verpackungen, Papierwaren für Hygiene und Haushalt, Büro- und Organisationsmitteln, Büchern, Broschüren, Tipping Paper sowie sonstigen Papierwaren.[/infotext]
SourcePropak
