Our member HIRSCH Servo Group, headquartered in Glanegg, is one of the established providers in the EPS insulation sector and is active in several European markets. CEO Wolfgang Landler has been at the head of the company for one year. In an interview with SOLID, published on April 13, 2026, he assesses the current market situation, discusses the weak development in the thermal renovation sector, and explains why, in his view, the building envelope must be at the centre of any serious efficiency strategy.
Building permits increased again in 2025. Are you already seeing this reflected in your current demand?
The increase in building permits is having an initial effect; we are seeing more momentum again in certain areas. However, we are still far from a broad market recovery. In particular, developments in new construction remain subdued.
The development has varied significantly by region. Do you also see clear differences between individual federal states?
Within Austria, our focus is clearly on the south. This is also linked to material logistics: EPS consists of around 98 per cent air and can therefore only be transported economically and ecologically over limited distances. Accordingly, our activities are concentrated on regional markets.
There has recently been a noticeable downturn in the renovation market. Do you see signs of consolidation, or does demand remain weak?
The renovation market has recently developed more weakly than expected. This is also reflected in the current renovation rate in Austria. Although it rose to 1.6 per cent of the housing stock in 2024, the increase is almost exclusively due to heating replacement programmes. The rate of thermal renovation, by contrast, has fallen to around 0.9 per cent. At the same time, the renovation market remains the central lever for energy efficiency and security of supply. Against the backdrop of European climate targets, a significant increase will be required by 2040. We therefore expect stronger momentum again in the medium term.
HIRSCH EPS foam insulation production. A look into production at HIRSCH: this is where EPS formwork blocks for pool construction are produced. – © HIRSCH Servo AG
Austria is considered particularly strict in terms of building regulations, including in the area of insulation. How do you assess these standards?
High energy standards are fundamentally sensible and necessary, particularly regarding energy efficiency, security of supply and climate targets. What is crucial, however, is that these requirements remain economically feasible and do not lead to unnecessary complexity. At the same time, fair competitive conditions are needed. The same standards, the same quality and the same reliability must also be consistently ensured across the market.
Initiatives such as “Building outside the norm” aim to reduce construction costs and simplify requirements. Do you see this more as an opportunity or a risk for your business?
Approaches to simplification can be useful if they reduce costs without compromising quality. However, there must be no regression, particularly in the field of energy efficiency.
Construction prices hardly increased in 2025, while wages and energy costs rose significantly. How have you dealt with this cost structure?
The decoupling of construction prices from rising labour and energy costs remains challenging. We are responding with efficiency measures and continuous optimisation of our processes.
Where is HIRSCH Servo currently placing its strategic focus?
A central focus for us is the thermal renovation of the building envelope. It makes little sense to invest in new heating systems if energy continues to be lost through an insufficiently insulated building envelope. At the same time, we already offer circular solutions for EPS insulation materials with a reduced CO₂ footprint or recycled content, and we are actively advancing their positioning in the market. Due to the currently higher sales prices, demand remains limited for now. However, we are convinced that sustainable and resource-efficient systems will prevail in the long term.
Where do you currently see the greatest opportunities and challenges for your company?
Landler: The greatest opportunities clearly lie in the renovation sector and in the increasing importance of energy-efficient buildings. A large share of Europe’s building stock is still considered energy inefficient. The potential is therefore considerable. A well-insulated building envelope can significantly reduce energy demand for heating and cooling, and thus also substantially lower CO₂ emissions. At the same time, there are economic benefits, as investments can pay back over manageable periods through energy savings and contribute to the long-term increase in property value. The main challenges remain ongoing economic and geopolitical uncertainty, as well as increasing regulation at the EU level. This makes reliable framework conditions and a clear focus on sustainable, long-term, effective measures in the building sector all the more important.