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Tischler Symbolbild © Miriam Doerr Martin Frommherz/Shutterstock

austria

Austrian carpenters between cost pressure and sluggish consumption

Article by Birgit Fingerlos (translated by Eva Guzely) | 03.07.2025 - 12:18

What their assessments have in common is concern about a tense economic situation, characterized by sluggish consumption and rising costs for materials and labor. At the same time, many complain about the growing pressure from low-quality, cheap imports, while quality craftsmanship is increasingly being pushed out of the market. Despite similar starting points, the carpenters we interviewed are pursuing different strategies: Martin Seethaler is focusing on repairs and is concerned about future market developments. Michael Pecherstorfer has a positive outlook thanks to digitalization and a broader positioning. Viktor Lindner is successfully focusing on exports and efficient processes. And Heimo Papst calls on politicians to ensure the survival of small and medium-sized businesses.

Martin Seethaler, owner of Tischlerei und Wohnstudio Seethaler, Vienna:

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Martin Seethaler, Tischlerei und Wohnstudio Seethaler © Foto Pany

Up until the National Council elections – and for a while afterward, until it became clear which coalition would be formed – the willingness to buy and invest was not just subdued, but rather at rock bottom. This isn’t a new phenomenon. We regularly experience this in so-called “fateful elections”. Afterward, purchasing behavior improved somewhat. There was more demand again, but at a low level. Consumers mainly made necessary purchases, but nothing beyond that. A genuine consumer enthusiasm, along the lines of “I’m going to treat myself”, is simply not there.

Currently, people are mainly replacing what’s broken or upgrading the bare essentials. For example: In the kitchen, defective appliances are replaced, a new countertop or sink is built in, hinges are replaced, and damaged parts are repaired – but a completely new kitchen? That has been rare since 2023. The situation is similar when it comes to the renovation of old and historic buildings. Window renovations, for example, have come almost completely to a standstill. This is due to the constant rent fluctuations. What is still being done are small, urgently needed repairs – but no comprehensive renovations. I’m currently busy mainly with small jobs, such as repairs, minor renovations, and the manufacture of replacement furniture. There are no larger projects at the moment.

There are reasons why large companies like Kika/Leiner have finally filed for bankruptcy, and even renowned carpentry companies like Schmircher are struggling. What worries me most is the new wave of financial burdens announced by the Ministry of Finance. Those will further stifle private investments.

The only opportunity currently lies in repair and refurbishment – an area I have been working in for decades. However, as long as furniture from the Far East and similar low-wage countries continues to be imported into the European market without fair import tariffs, nothing will change. What Trump is doing, i.e. introducing punitive tariffs, is something many medium-sized manufacturers have long been demanding: Fair competition! Not least because what is being imported is often of inferior quality, product labeling is dubious, and prices are kept low artificially by tricks regarding the value of the goods. For me, this is fraud, systematic fraud.

People used to be able to afford high-quality products. Today, the middle class, on which we as craftsmen depended on, has practically been wiped out. This middle class must be strengthened again. Instead, we are experiencing a constant social influx of people who barely consume, don’t need furniture, and don’t commission repairs – because they live at subsistence level. No table, no chair, no order.

Michael Pecherstorfer, CEO of Tischlerei Pecherstorfer, Eferding:

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Michael Pecherstorfer, Tischlerei Pecherstorfer © Sabine Kneidinger Photography

The carpentry trade is currently faced with numerous challenges. A shortage of skilled workers, rising material prices, and wage increases are putting a strain on the sector. Many companies are struggling with these problems and are looking for solutions.

Despite these challenges, there are also opportunities for the future. Demand for customized, sustainable furniture and interior design is growing steadily. Customers no longer see carpenters solely as experts in interior design and the production of high-quality furniture. Consumers expect creative solutions for the entire living space, with suggestions for everything – from the perfect couch and atmospheric lighting to the optimal slatted frame and mattress. With the right products, we can not only offer our customers attractive kitchen and living room solutions, but also secure our position as a local furniture supplier. Digitalization also creates opportunities to optimize processes and offer customized solutions.

However, to seize these opportunities, we must also address the challenges. We need innovative solutions to combat the shortage of skilled workers and manage rising costs. This requires close cooperation between businesses, the government, and educational institutions.

The current challenges do not keep us from looking to the future with optimism.

Viktor Lindner, managing director of Lindner Möbel und Treppen, Steinfeld:

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Viktor Lindner, Lindner Möbel und Treppen © Lindner Möbel und Treppen

As an Austrian carpentry company specializing in high-quality interior design, we have been successfully supplying the Swiss market for years – particularly in the penthouse and exclusive real estate segments. There, we experience strong demand for complete, customized solutions. The Austrian market, on the other hand, is significantly more price-sensitive. In addition, rising material and labor costs are further complicating the business situation.

Companies that are able to operate efficiently at a structural level – for example, through prefabrication or well-thought-out processes – can position themselves well in the long term.

Heimo Papst, owner of Tischlerei Heimo Papst, Meiselding:

It’s striking that many fellow entrepreneurs describe the current situation as “interesting”. There is hardly any industry that isn’t complaining about losses, except for those whose products are subsidized by the state or federal government.

Personally, I’ve noticed that the increase in labor and material costs has made it harder to sell our product. In this regard, I want to call on the government to support us small and medium-sized businesses in the future.