Programmed for further growth

19.05.2005

A study by Interconnection shows the Austrian windows market to be in good shape

The specialist windows trade/sector is in a good position to benefit from this positive development, having consolidated its market share at around 58 per cent. Driving the growth for the overall market is the re-emerging building and construction industry. It emerges from the current study produced by the Interconnection Consulting Group of Vienna that the windows sector is enjoying a tailwind from the strong national window brands.
In 2004 the Austrian windows market grew by 1.7 per cent to 2.58 mio units, amounting to a market volume of € 600 mio. As Alexander Schurian, a market analyst at Interconnection, explains, "The positive development of the building and construction industry has exceeded all expectations. For the first time, too, price increases have been passed on to a great extent." The year 2004 is the beginning of a longer period of positive development, which will bring the Austrian windows industry annual growth rates of 2 to 3 per cent up to 2007.
There is an interesting development in the area of the distribution channels in Austria. Nearly six out of ten windows are sold within the specialist sector. DIY stores attain a market share of under 5 per cent, the remainder is sold direct. The specialist dealers have steadily built up their share over recent years. The reason behind this development lies with the strong brands that are to be found in Austria, which can only retain their brand image through active trading partners. Alexander Schurian is convinced that the sales expertise of the sector will continue to gain in significance as the proportion of renovation projects increases.
The regional distribution of wood and PVC varies greatly. The share taken by wood is over 40 per cent in the traditional region of Tyrol, which means it beats the strongholds of the wood industry like Styria and Vorarlberg. PVC is specially in demand in Salzburg, where it accounts for almost 80 per cent of window sales.
In contrast with Germany and Italy, the windows market in Austria is already highly consolidated and is now dominated by around half a dozen supra-regional manufacturers, for whom Austria is already getting too small.
The EU's new member countries all record high rates of growth for the windows market. Because of the low prices prevalent in these countries, cheap imports are threatening to flood the Austrian market. Only in the premium segment is it possible for a few Austrian manufacturers to find lucrative niches.
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