| Larissa Bilovits
|
15.09.2024
Although no economic sectors in this country are classified as high-risk, there are still some problem children. And one big winner.
“There are struggling industries with weak demand and weak pricing power, industries suffering from supply chain problems and geopolitical tensions, and industries that are slowly recovering,” explains Gudrun Meierschitz, Board member at Acredia. This is the conclusion of a risk check in which the credit insurers Acredia and Allianz Trade examined a total of 18 industries in 66 countries. Although global economic growth stabilized in the first half of 2024, producers worldwide are struggling with full warehouses and sluggish demand, the two companies said in a press release.
Pharmaceutical industry as big winner
With regard to Austria, the risk check revealed a mixed picture: Although there is no industry that was rated as high-risk, there are some problem children. The only industry with a low risk factor was the pharmaceutical industry, which can be attributed to the increasing life expectancy of people and the simultaneous increase in demand for pharmaceutical products. The industry also benefits from innovative drugs, such as those for weight loss, according to Meierschitz.
Diverse risk factors
According to the analysis, the automotive industry, the construction industry and the food industry are faltering. “While the domestic automotive industry is struggling with declining profitability, increasing price wars and geopolitical tensions with China, the construction industry is suffering from a lack of skilled workers, weak demand for house building and increased material costs,” says the Acredia board member. The food industry is struggling mainly due to climate change and increased energy costs in processing and packaging.
The risk is also increased in the transport, textile, paper and metal industries, as well as in trade, mechanical engineering, vehicle construction and the energy sector. Structural weaknesses and unfavourable developments indicate a particular risk of a crisis. In contrast, the chemical, electronics, software services, household appliances and computer sectors face a moderate risk – and thus a possible deterioration in circumstances.
Risk varies by location
“The results of our risk check varied greatly between countries. For example, the energy sector is considered high-risk in Turkey, while it is considered low-risk in Norway,” says Meierschitz The biggest winner in international comparison is the pharmaceutical industry, which is classified as low risk in most countries and only has to contend with moderate to high risk in a few countries. In the Asia-Pacific region, the software and IT services sector is also doing well, while in other parts of the world it is often classified as moderate risk. The textile industry, on the other hand, is badly hit, being rated at least as high risk, and in some cases as extreme risk, in almost all of the countries analyzed.
The complete results of the international risk check can be found here.
