Austria`s skills shortage
A reality we must adapt to

The Austrian building services sector is under pressure: projects are being postponed indefinitely, price pressure is mounting and many companies are facing a shortage of skilled workers. The result? Tasks are increasingly being outsourced to industry: what used to be managed with technical advice now requires intensive support right from the planning stage. In an interview with HERZ News, Helmut Veigl, HERZ Head of Sales for Austria, discusses the reality of the market, the changes taking place in the field sales team and why technical expertise is more crucial today than ever before.

HERZ News: Mr Veigl, how do you view the current situation on the Austrian market?

Helmut Veigl: The pressure has increased massively. There are fewer projects, whilst at the same time more companies are competing for the same contracts. Today, large companies are bidding for smaller projects, whilst smaller firms are increasingly bidding for larger installations as well. In the past, the division was often clear-cut. The pie isn’t getting any bigger, but more and more people want a slice of it. As a result, competition has become fiercer and price pressure has risen enormously.

HERZ News: How does this pressure show up in practice?

Helmut Veigl: The impact is particularly evident in larger projects. Smaller firms can often quote more aggressively because they have lower fixed costs. However, the problem often only arises after the contract has been awarded. Some firms win projects that are barely manageable in terms of staffing. As a result, subcontractors have to be organised at short notice or work has to be outsourced. This creates additional pressure throughout the entire supply chain.

HERZ News: At the same time, one often hears that many projects are planned but never implemented. What implications does this have for an industrial company such as HERZ?

Helmut Veigl: This is exactly what we have been experiencing very keenly since the start of the year. Whilst there is no shortage of project enquiries, the actual implementation of projects is proving problematic. Projects are being postponed indefinitely. This makes long-term planning extremely difficult for the construction industry, wholesalers and plumbing contractors. In the past, entire residential complexes were built in one go. Today, construction phases are being scaled back significantly and are often only continued once units have already been sold.

HERZ News: How does HERZ deal with this unpredictability?

Helmut Veigl: We make a conscious effort to invest in technical advice and support. Our team is sometimes involved in projects as early as the planning stage – working alongside planners, plant manufacturers and installers. The technical depth of our discussions has changed completely. Customers no longer just want to know what products are available and how much they cost; they want to know what benefits they will deliver in the long term. We discuss energy efficiency, hydraulic balancing, long-term savings and system optimisation.

HERZ News: Why is technical advice more important than ever before?

Helmut Veigl: Because the shortage of skilled workers at other companies is increasingly being passed on to the manufacturing sector. Many companies have scaled back their technical capacity as a result of cost-cutting measures or are simply unable to find skilled workers any more. As a result, more and more work is being outsourced to the manufacturing sector.

HERZ News: To what extent have the requirements for sales changed as a result?

Helmut Veigl: In the past, the sales team would visit customers to present new products or provide product-specific support. Today, we are sent complete building plans so that we can configure entire heating systems. Customers expect ready-made solutions, including calculations and optimal system settings.

HERZ News: How is HERZ responding to this change?

Helmut Veigl: We are stepping up our support throughout the entire planning process – both digitally and through enhanced face-to-face advice. We have been offering installers and planners the digital planning software HERZ PROplan for some time now. The software enables the straightforward design of underfloor heating and radiator systems, as well as drinking water installations, whilst also handling the thermal building calculations. Meanwhile, we are currently expanding our sales team and are specifically looking for technically qualified building services and planning consultants.

HERZ News: What qualifications are required for this?

Helmut Veigl: We are looking for individuals with an understanding of building services engineering and technical system solutions – perhaps from a technical college, a planning office or directly from the plumbing sector. Strong communication skills are, of course, also essential, but sales skills alone are no longer enough these days.

HERZ News: Does this also mean new opportunities for career changers or young professionals?

Helmut Veigl: Absolutely. Anyone wanting to work in the field these days needs to have a strong technical background and be able to hold their own in discussions with planners and plant engineers. The rest will follow naturally. This field is also particularly interesting for skilled workers who are looking to change career direction and want to apply their technical experience in a different environment.

HERZ News: In your opinion, what needs to change to ensure the industry remains stable in the long term?

Helmut Veigl: More cooperation. The pressure is high across the board – on manufacturers, wholesalers, designers and plumbers. In the long term, it will only work if we work more closely together again, rather than competing against one another on price.

HERZ News: Mr Veigl, thank you very much for your clear words and candid insights into the Austrian market.