wienerberger podcast - hosted by CEO Heimo Scheuch

wienerberger Podcast #39 | Building the Future: U.S. Perspectives in Construction, Business, and Diplomacy

• Heimo Scheuch • Season 1 • Episode 39

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Episode 39 of our podcast brings together two perspectives that shape our future: diplomacy and business. In an inspiring discussion, our CEO Heimo Scheuch and Kami A. Witmer, Deputy Chief of Mission for the United States Embassy in Austria, explore how transatlantic cooperation, education, and innovation can strengthen both economies and societies.

Heimo Scheuch 

Ladies and gentlemen, a very good morning here from the Wienerberg in Austria in Vienna. And I have a very, very, very special guest today. 

I'm very proud and very honored that Kami A. Witmer came to me this morning. She is obviously representing the US in Austria right now as the ambassador. 

And it's such a pleasure in these turbulent times that we come together. And I would call it actually diplomacy meets business. 

Kami A. Witmer 

Absolutely. Thank you so much for having me. It such a pleasure to be here. 

Heimo Scheuch 

You know that we are sitting here on the founding grounds of this company. wienerberger, a company more than 200 years old. If I go back in the US history, it's a long time. 

Kami A. Witmer 

Absolutely. 

Heimo Scheuch 

And so, this was the first brick factory that was built by wienerberger here in Austria. Today we have more than 250 locations worldwide and so we are still a very, very, I would call it a multinational company because we are not a centralized big operation. We operate as you know also in North America and especially in the US very successfully more than 30 production sites, and therefore, it's so important for us that we act local. Yeah, that's our that's our basic principle in management. And I think when we look over all these years and we will discuss it a little with what your thoughts are, but I think it is exceedingly important in this, I call them volatile or turbulent times, that conversations, discussions and exchanges of views and ideas must not be forgotten. 

Kami A. Witmer 

Absolutely. 

Heimo Scheuch 

Yeah, and I would sort of start a little bit our discussion: What do you think what we can contribute more, diplomacy on one side and business on the other, to I would call it reinforce the strong links transatlantic or even worldwide? 

Kami A. Witmer 

Yeah, well, I think if we look at business, diplomacy, cultural ties, all of these are really important ingredients to a robust US-Austria relationship. And I am, if we take that down a little bit to just business and diplomacy. 

I think they have to really work hand in hand, right? What we try to do as diplomats is really to create the framework and stability that business really needs to invest, to expand and ideally to innovate, right? 

We want a level playing field for all, but I think diplomats can play a really important role in making that happen, working together with business. Just earlier this summer, we obviously had this new US-EU framework agreement, and in that framework agreement, both the EU and the US agreed to promote reciprocal, fair, and balanced trade between the United States and Europe. 

I think that's just one really concrete way, which, how we can work together in promoting the strongest transatlantic relationship we possibly could have. 

Heimo Scheuch 

I do agree and I think any relationship that you have in business and also privately by the way is based on respect and trust. And you can only gain this when you work together in a very transparent open way. 

And I agree with you that obviously when you are partners, then you also try to balance the trade on one side, the investments on the other side, and then you create I think the trust, but if I look at this strong transatlantic relationship, we have it actually for decades, right? 

Kami A. Witmer 

Yeah. 

Heimo Scheuch 

And I mean, some people, and that's probably something which is changing these days even in Austria, if I may say. You know, the Second World War is a long time ago for young generations, for older generations not so. But the important and very, very strong assistance help not only financially, by the way, of the Americans in Austria is very well appreciated as you know. 

Kami A. Witmer 

Thank you! I mean, I think we recognize the importance of helping Europe in the post war period and here in Austria we really had a robust relationship that then led to ongoing ties, and I think the strength of the US-Austria relationship is really, paramount to everything that we are trying to do both in diplomacy and for our businesses as well. Having that long term trust and that long-term understanding of one another is what really drives the the relationship forward. 

Heimo Scheuch 

From a personal experience, I can tell you, as I said we run these 31 production facilities and then a lot of outlets for sales and distribution in the US, in the heartland, yeah, meaning in really rural America. 

And it is fascinating and interesting if we bring colleagues over here for education, for training, et cetera, because it opens the mind, the same goes if we take Europeans over there. So strongly which I would sort of suggest recommend or put into the discussion is that we create stronger links in this field of education, yeah, and training. 

I would say that companies like us who are in the US now for you know we started the business there in the late 90s, so it's a long time, more than 25 years. 

Kami A. Witmer 

And it's a great business, you’ve got I think more than 2000 workers in the United States? That's awesome! 

Heimo Scheuch 

No, it's a very good business with very good people. As you know we are based in Tennessee, the Eastern part, but I would say this is key that we all think about this: bringing younger people together, yeah? And do continuous education. Bring them here to the universities or send them over to the US, because I think this is also where you create this link and this understanding. 

Kami A. Witmer 

Yeah, I think actually the United States has a lot to learn from the apprenticeship and the vocational education here in Austria, right? Of course, university education and bringing students together is really important. 

We actually are this year celebrating Fulbright’s 75th anniversary, bringing scholars on both sides of the Atlantic and then specifically here in Austria, but one thing Austria does amazingly well is these apprenticeship programs. And this has been something that President Trump has really looked at and would like to see more of in the United States. So we are, I think hopefully going to be able to learn a little bit more from you. We have two new programs, two new agreements, not so new, but they've been not so old either. 

One is a basic professional development and cultural exchange program where companies and individuals can go to the United States to both work for a period of time, but also to share their experiences. And that helps us understand kind of how Austria really develops and has worked this apprenticeship program over so long, which is really contributed to your economy. 

We have another program, which is really, where we're looking at an apprenticeship career and technical education models. And so we're looking to bring others again over to really work with our schools. 

Some companies are really taking advantage of that and working with some of our High Schools in the United States and some of your industrial associations are also looking to help build that out. So, I think that's another way we can have our younger folks, our students but also some of our younger professionals work well together and to kind of share and build those transatlantic bonds. 

Heimo Scheuch 

That's a wonderful idea and I strongly support it and you will have a lot of supporters from our side, wienerberger and General Shade in the US because as you see, we are in the construction sector and the lack of skilled labor is in the US a big issue. 

Kami A. Witmer 

Absolutely. 

Heimo Scheuch 

And getting people, if I may say this, off to streets and in the job, yeah, is something, which is very important and create a successful future.  And we need, if I look at the especially also the Southern part of the US, we need actually more people or skilled labor for the building of houses, renovation or infrastructure. 

Kami A. Witmer 

Yeah, skilled labor is going to be absolutely imperative moving forwards. So, anything that we can do to make the US worker more skilled so that we can attract further investment into the United States as a high priority for our administration, is something that were looking to do more of. 

Heimo Scheuch 

So, I think my propose would and then I sort of submitted to you here is that we start state by state because we are obviously very local because you know our products don't travel so far. So, we could also start by certain states in the US and therefore create this partnership with High Schools, Colleges, etc., which we already do a little bit, but we could do it on the broader level. 

Kami A. Witmer 

No, we'd welcome that, and we'd welcome you sharing your experiences with other Austrian companies who might be looking to do the same. 

Heimo Scheuch 

Absolutely! I think this is a long way that we can grow together. And you know we are also going through at the period of change in Europe, what is a national country responsibility, what is EU responsibility, but as you might understand from my background and my career, I am a strong believer that the responsibility lies with the people who are acting locally. 

Big organization, big structures are helpful in strategic thinking, but not in putting it in place. And therefore, I think it strong links, if I take a state like Tennessee, as I mentioned earlier, it's about the size of Austria by the way, yeah? So, it's very similar. So, you can create strong links here as well. 

Kami A. Witmer 

Yeah, anything that we can do, I mean as the U.S. embassy or a U.S. government to build those links is also something we're very much interested in, right? Finding ways for business to work better is always what we are pursuing. 

Right now, as you can imagine, we're looking at new investments in the United States, right. The Trump administration has made kind of the reindustrialization of the US and specifically kind of the revitalization of the economy a number one priority. And so, we are trying to work with companies so that they're able to help us with that and to innovate through that. 

So, if there are other companies or friends of yours here in Austria who are looking for opportunities, we can be helpful in working towards that. 

I think there's some other areas that we can also work very closely together locally, but that could have kind of global reach, whether that's securing our supply chains or making sure that we have or working with friends like Austria on secure, securing really good technical and critical technologies, is also really important. 

So both secure, excuse me, secure supply chains, but also making sure that the technology that we need that we are pursuing that with our friends, we have really great know how in the US United States and Europe and I think the more that we can work together whether it's an research field or actual production field and making sure that we're doing that together perhaps making sure that our adversaries are not really getting in on that is probably in our best interest. 

Heimo Scheuch 

Absolutely and I can't agree more with you. I think there's a huge potential for further growth, as I said, first of all, I think we need to get down to the basics, to the understanding. 

I still feel on both sites if you ask me when I spend a lot of time in your lovely home country, there's a misunderstanding, misconception, yeah, about us Europeans, and especially Austria. Austria is not only music and culture, by the way, it's a lot about. 

Kami A. Witmer 

It's also Schwarzenegger, right?

[both laughing] 

Heimo Scheuch 

Yeah, it's also our friend. But at the end of the day, it's also about industry as you correctly said, innovation, a lot of good education, it's also about medical, I think here we are also quite leading in technology and development, so there's a lot to be done. 

Kami A. Witmer 

Yeah, I mean Austria has, like the US, is very strong in in research and development, right? 

One of the main things that we're looking at moving forward is is artificial intelligence, right? So, the Trump administration has put in place since it came into office, new efforts, new emphasis on AI. It's the transformative technology of the future, right? So, we're putting more money into that, we've started some institutes, which, some research institutes at which we're going to try to do more and solve problems faster, right? 

Again, innovation, but whether we're looking at biotechnology or AI or cybersecurity or quantum technology, something that Austria has a long history in, these are something that these are kind of areas where I think we can work together as Europe and the United States or as Austrians and Americans, in finding the right solutions that we need for our populations.  

Heimo Scheuch 

Right, and I think there is something which is profoundly different here, when you look at the European style and the American, you have today a very, I call him very active and proactive president and very business minded, yeah? And that's for sure something we obviously from the industry appreciate a lot. 

And I think it would be very helpful, if I may say, that people like us, that are active in North America and get together with people more and speak about the positive impact, not only the negative, because politics these days are very difficult because there's populism on all sides and there's a lot of discussion, but I think what we need here is a clear understanding, yeah? How well you can run businesses in the US, how well perceived you are when you invest. You mentioned for example investment. 

If I take wienerberger as a company, hundreds of millions of dollars we invest there, yeah, and we are going to invest by the way. So there's no doubt for us that this is a great area to invest as a great future and there's also a human potential. Yeah, and that I think needs to be understood. 

Kami A. Witmer 

I think that, as much as you can share that experience is really helpful. If we look at just these past months, I mean, wienerberger is an amazing investor, but there are others in Austria, right? I think if we look, I think right now, we have about $25 billion from Austrian companies invested in the United States, and last year, Austria was the fifth fastest growing foreign direct investor in the United States. 

I think that 25 billion was even an increase from a year before, about 13 to 14%. And so that kind of help, can be helpful in showing other companies the value, but having the firsthand experience from other colleagues, other businesspeople is really important. 

We saw just earlier this month, we had Red Bull and Rausch who broke ground on a new manufacturing facility in North Carolina, that's a 1.7 billion US-Dollar, so about 1.5 billion euros. They did that with an American partner, Ball Corporation, but really the investing and working together with local partners or other Austrian partners, can really help advance your investment, can help bring it in faster, can help really solidify what you're trying to do in the U.S. and is going to bring great business value back to the company. 

Heimo Scheuch 

Absolutely, I can't agree more. And I think these platforms, I would sort of if I say ‘diplomacy meets business’, probably you create a little bit of this. 

Yeah, because I think we Austrians, as you know, you live here and understand us more and more, we are proud people, and we are Europeans, but we are Austrians. And we want to be also recognized on an international level. 

Yeah, and I think if you see this small country, but it is a very historically, but also for the future an important case, because it has shown that from a very sort of difficult past you remember the Second World War, what has happened to this country, how we emerged of this mess, if I may say so, and how we created a very modern future-oriented country.  And this was basically not because of politics, it was of good diplomacy and in industry and business. 

Kami A. Witmer 

I think Austria is seen worldwide and certainly in the United States as an industrial powerhouse. There are so many incredible companies here. 

It is a smaller country, right? And to really grow you have to go outside Austria's borders. I've met with a lot of businesses here and I'm really impressed by, actually a lot of them are family businesses as well, who really are able to find a global reach, a lot of that through their advancements in innovation, but also through their investments in the United States, which also helps kind of fuel their longer term strategies and their longer term goals for the company or for investors in the company. 

And so, I think you are well respected, and wienerberger specifically, but also Austria for what you're able to do and how you are able to grow and the interest in growing, so that's really, ... 

Heimo Scheuch 

I just I do feel the same as you by the way, but I do see this as a point of attention that we need to focus on because media obviously these days is trying to influence people in a general way and not with a good information. 

So, we need to work on that and specifically put an emphasis on it. Yeah, because they only talk about travel restrictions and how bad things are if you look at the media, it's nonsense these days.  

Kami A. Witmer 

Yeah, I mean, look, I think media is going to report on what media wants to report on, but at the end of the day you’re right. There is so much positivity out there with regards to the investment and with regards to business and diplomacy that is really, that should be celebrated. 

Heimo Scheuch 

Absolutely, and I think there's nothing better than a good understanding business-wise because it helps to improve the relationship and creates a profound and solid base for peace, what we actually need. 

Kami A. Witmer 

Yeah, and I think you know again, we talked a little before they're mutually reinforcing, right? 

So, what we are always trying to do is find the best possible platform, stable platform for business to operate, right? 

But that's a two-way street. It's not just government officials or regulators kind of sitting in a room together, but we need the feedback from business. 

And so, if business can come in and say, hey, we see this regulation as a bit of a barrier to further trade or it's really hampering our ability to do business, we need to know the information so that we can work with businesses to do so. 

We encourage folks to businesses to work through industrial associations, whether that's the American Chamber of Commerce here in Austria, IV, WKO, or other industrial groups about where they see problems with regulations that they kind of bring them to our attention. It's hard work, it can sometimes be a little bit complicated, but that's what we're here for. 

We want to create the best possible platform because when business succeeds, our citizens succeed. 

Heimo Scheuch 

Honestly if I say, if you know, if you operate in so many states in the US and have these operations as we do, we get along very well with administration. 

If it's in Washington or locally or on a state level, it's very professional, it's very straight and direct and very welcoming when it comes to invest. 

Kami A. Witmer 

That's great to hear. 

Heimo Scheuch 

So, there's no real criticism from my side. 

And I think if I may say so on the construction front nd and here, I would like to see a little bit more innovation because the way of building is still very traditional, and this has to do with the whole value chain obviously.  

But I think, thinking ahead, and this could be a good theme for probably, a subject for bigger seminars, something cross Atlantic, how you can improve the construction durability, sustainability, and long term. 

Kami A. Witmer 

Yeah, I know there has been some, you are the expert far more than I am, on building strategies and building materials, but I know that there are individuals working on this, of course in the US and here in Austrian and elsewhere. 

I've seen some exciting advancements which I'm probably not, you know, the smartest person to talk about, but kind of even seeing some of these houses being 3D printed when it comes to sustainability, was fascinating. 

I think long term we’ll decide how sustainable that is, but I think there's a lot of new and exciting changes that are coming and some of those can be, I'm sure wienerberger will be at the forefront of all of those, but I think it's really exciting to continue to see companies innovate, individuals innovate, and to share those ideas or across borders. 

Heimo Scheuch 

And this could also link to the first part we discussed about this education and training aspect because here obviously skilled labor is required. 

If you take your issues with weather for example, if it's hurricanes, if it's flooding, et cetera, if it's heat, that issues that you need to take into consideration if you build new homes. 

And therefore, I think it is very helpful if we get together on the academical side, with these universities, et cetera, but also then on the business and the practical side, that would be, I think, a very highly valuable addition to the discussion between Austria and the US. 

Kami A. Witmer 

Yeah, that sounds great! 

Heimo Scheuch 

So, I think this could be something we develop together over the future and which creates more momentum for investment and others. 

And as you a president is very real estate minded; he should understand this very well actually. 

Kami A. Witmer 

No, I mean, as far as working together, obviously it's something we want and we strive for and for those who are looking to work in the US, or to find partners in the US to do that we can also be very helpful in that endeavor. 

We are, as I said, one of the main priorities of our government is bringing new investment into the United States and enhancing the investment that's already there. 

So, I actually have a whole team at the US Embassy, a foreign commercial service, who are very active in helping anyone in Austria who might be interested in investing in the US to find partners, to find locations. Once a year we do something called the USA Select Summit, which I wienerberger has participated in in the past. And for those who don't know, it's a really once a year, summit that takes place just outside of Washington DC and it's where we bring in representatives of all 50 states and then we have lots of international business who comes, and we bring in a specific Austrian delegation there together so you'd be going with other Austrian Counterparts, but it's such a wonderful place to really find out where it might be the best place for you to invest or to invest further, sometimes finding partners for that or finding out kind of, if one state or the other has different requirements or different offerings that they could make to companies, that’s really great. 

00:22:22 Kami A. Witmer 

And so, our team of the embassy can help with that. Don't think of the embassy just as you know visas and immigration but also as a partner in advancing business. We’ll also, I think even here in Austria for those who might not be prepared yet or not sure yet, we're going to have two Select USA events here. 

One is going to be, I believe, January 27th here in Vienna with a second being on the 29th down in Graz. We might not have all 50 states there, we usually bring out between 10 and 20, but it's also a great place to talk to folks about what’s available.

Heimo Scheuch 

If you need somebody as a witness how good is,.. 

Kami A. Witmer 

We’d love to have you! Absolutely! 

Heimo Scheuch 

I’ll come, don’t worry about that. Actually, we don't need this advice anymore because we are there, as you know. 

Kami A. Witmer 

But you are a good champion, so we’ll take it!  

Heimo Scheuch 

And then we can talk about the positive results. 

Kami A. Witmer 

That’s great! 

Heimo Scheuch 

One other thing that came to my mind when I was thinking that you are coming to see me here is financial markets. 

You know that I'm the chairman of the Stock Exchange here in Vienna. And I think also when we look at the long-term relationship between Austria and the US, financial markets play an important role. And there could be also some sort of stronger corporation probably to be launched. Something to take with you because financing investments as you know, both sides, is important, how you deal with it and how you sort of promote companies internationally, either with American investors or with Central European ones as in here in Vienna is a good thing, I think.  

Kami A. Witmer 

I'll take that away absolutely! Again, we're always looking for good ideas and how we can improve. I think as well one thing I hear oftentimes from from Austrian companies and or startups or others who are kind of entering the market is that they wish there was a little bit more venture capital available here in Austria. 

They wish Austrian investors might be a little bit more less risk averse, really to take more risk. And that's something I think where American investors can also really help Austrians understand, kind of where the benefits come from that and so maybe there’s something we can do a little bit more on that side.  

Heimo Scheuch 

That's what I think also, there you see clearly, that the mentality of Austrian investors is a more conservative one. Yeah, that's how it is, and you must not sort of say this is wrong or right, this is tradition and culture. On the other hand, we have, I think, the good knowledge of our American friends that are much more risk takers and therefore also spot very quickly the potential from these startups or technologies in order to develop it further. So that could be an interesting possibility. 

Kami A. Witmer 

OK, great. 

Heimo Scheuch 

To summarize our things, I think diplomacy meets business, well you see there's a lot of things that we can do and promote. Politically speaking and worldwide speaking, I don't, I'm not going to ask you any tricky questions, but I am just testing your optimism. Are we going to solve at least a few of these conflicts and issues? 

Kami A. Witmer 

Well, I mean if we're looking at solving conflicts, the Trump administration has a good track record so far during this presidency. There's a little more work to do, but the president is working very hard, and he's working very hard in collaboration with his European counterparts Secretary Rubio, as well, right? 

So, I'm always going to be optimistic about the future. I think there's a lot, we have such a strong transatlantic relationship that we’ve had not since just after World War II, but even before, and I expect that that's going to continue. 

Personally, some people always ask, are you an optimist or a pragmatist, or a pessimist and I was like to say I'm a pragmatic optimist on some days and an optimistic pragmatist on other days, right? 

I think we have to continue working at it. I think we have to continue moving forward, but I see nothing but real value in our relationship, both at the diplomatic side and on an economic side. We are stronger together when there is a robust vibrance transatlantic trade and political cooperation. And so, I see that as positive moving forward.  So I again, I'll continue to be optimistic, but pragmatically I'm going to keep working every day to make sure that that's the case.  

Heimo Scheuch 

And that’s very encouraging. Thank you for this very strong message, I would say, in these times. And I think all of us, and we all can contribute to this, we need obviously to underline it, to reconfirm it, because there are a lot of negative thinking people around these days, yeah, and they try to obviously, as you correctly say, to torpedo this strong relationship. Yeah, and we need to obviously to show how strong it is and to live it, not only on the political front, but on the business and diplomacy front, right? 

Kami A. Witmer 

Great. 

Heimo Scheuch 

And talking to each other is much better, than just ignoring each other. 

Kami A. Witmer 

That's right. I mean where there's an issue, we try to solve it. If things are going great, we try to make it better, right? And I think that's an important thing for business or diplomacy. 

Heimo Scheuch 

And I think this is also something which other people can take away in other parts of this world, that we should engage in conversations and basically bring the people to the table, and not just leaving them outside. Yeah, it's an interesting subject that we, as you know, live everywhere right now in our democracies where we have these people saying, ‘we don't talk to others’, because I think that's also very dangerous by the way, because you need to integrate and not to separate. And on the other hand, internationally, you can't take your example and implement it 100% somewhere. It doesn't work because culture, tradition and others, this is very different. But respect towards other cultures is something that gives you the force to talk to them and to really value also their situation and then engage. 

Kami A. Witmer 

I think sometimes friends disagree and the way to get beyond that and again to create stable frameworks and stable abilities for business and countries and individuals to prosper and to thrive is through conversation. 

Heimo Scheuch 

I think here you say friends, I will go in further any good family has its fights, no? 

Kami A. Witmer 

Absolutely. And if you take the kids and us adults there's always a little fight. 

Kami A. Witmer 

It makes it interesting sometimes! 

Heimo Scheuch 

But the good thing is that you do it, because there you grow both signs, the young ones and the older ones, and this is I think something with this positive message I would say to the listeners to this podcast, we leave them to think about improving the conversations and discussions. 

Kami A. Witmer 

Fair enough!  

Heimo Scheuch 

Thank you very much for coming! 

Kami A. Witmer 

Thank you for having me. Pleasure!