Economic Development & Business Situation
The economic cycle plays a significant role in almost every area of the economy. After all, it plays a key role in determining the well-being of companies and employees. In fact, it is particularly relevant in the machinery and equipment manufacturing sector. After all, it plays a key role in determining the well-being of companies and employees in the mechanical engineering sector.
The mechanical engineering sector started the year with a subdued export result. March at least showed a slight upward trend. However, the weaknesses in the Chinese and EU markets remain serious.
Although the situation in supply chains has eased, prices remain an important issue. To get an overview of current developments, it is worth taking a look at the interactive report.
In our quarterly report, we provide you with information on India's macroeconomic development, as well as detailed information on the manufacturing industry and individual sectors with a particular focus on machinery and equipment.
Machine capacity utilization stabilized at 78.5 percent of normal full capacity in April 2025.
In 2024, German machinery exports to Latin America increased by 0.8% - after three previous years of strong growth. The Chart Pack provides facts and figures on the market.
Sentiment in the mechanical engineering sector improved somewhat at the start of 2025, but remains very mixed. A majority of companies do not expect slight growth again until 2026.
High uncertainty weighs on demand for capital goods.
EU machinery and equipment manufacturing companies currently rate their competitive position as worse than the long-term average. This is particularly true to companies based in Germany.
In February, order books in the mechanical engineering sector filled up unexpectedly strongly by 8% in real terms. Part of this growth was due to large-scale plant business and part to component business.
Mechanical and plant engineering is one of the world's most important industrial sectors. We show the wide range of its economic indicators - presented in interactive charts and tables.
The machinery industry is currently presenting a mixed picture across different regions. While production growth is being reported for China, negative rates continue to dominate in EU machinery and equipment manufacturing.
Global machinery turnover fell by 1 percent in real terms in 2024. At this point in time, a small growth of 1 percent still seems possible in 2025.
It's the same exercise every year: as part of the preparation of the management report, an overview of the overall economic development and the situation in the industry usually has to be provided.
In 2024, price-adjusted production output in the EU mechanical and plant engineering sector contracted by 7 percent compared to the previous year.
As in the previous year, demand for capital goods was weak in 2024. Machinery and equipment worth an estimated 3.26 trillion euros was sold worldwide, 1.5% less than in 2023.
The quarterly report "Machinery & Equipment in China" contains relevant key figures such as production, sales, profit and investment trends in the local mechanical engineering industry as well as important customer industries in China.
The overall result for orders in 2024 in the mechanical and plant engineering sector is disappointing. The wait for a turnaround continues. Better framework conditions in Germany are an important aspect of this.
The mechanical engineering sector is feeling the effects of the recession - yet companies only reduced their workforce by just under 1% in 2024. Even now, the core workforce is to be retained as much as possible.
The mood in the mechanical engineering sector remains tense, with one in three companies rating their own situation as poor. Business prospects are a small ray of hope - but reforms are urgently needed.
A small ray of hope in orders from eurozone countries in November does not change the overall weather situation: orders in the mechanical engineering sector are not gaining momentum.
VDMA member companies see the US market as an opportunity and are cautiously optimistic about the coming years. Many are building on good or even very good competitiveness, but this must be defended.
Despite falling interest rates worldwide, a broad-based upturn is not in sight. Military conflicts and de-globalization continue to weigh on business in many specialist areas of mechanical engineering.
Global machinery turnover is expected to rise by 1 percent in real terms in 2025. The forecast uncertainty is high in view of intensifying trade conflicts.
Heavy seas and no calm in sight: the mechanical engineering industry expects a decline in production and a slight reduction in jobs in 2025. A political turnaround is needed to strengthen the industry.
Order books in the mechanical engineering sector remain weak, with 9% fewer orders booked in October than in the previous year. Customers remain hesitant to make new investments
The business climate in India and Brazil remains positive. Significant sales growth is expected in both countries for the current year 2024 as well as for 2025.
A weak global economy and many structural problems at home are weighing on the export business in the mechanical engineering sector. Exports fell by a good 5 percent in the first nine months.
The order situation in the mechanical engineering sector remains weak, particularly in Germany. However, companies are also still waiting for new investment momentum in global business.
The Economics and Statistics department provides you with all industry-relevant economic and market information. Benefit from our expertise and use our statistics as a basis for smart business decisions.
According to the latest VDMA survey, the mood and prospects in the mechanical engineering sector have deteriorated noticeably. This makes it all the more urgent for politicians to finally set the course for new growth.
In August, incoming orders in the mechanical engineering sector increased by 7% compared to the previous year. However, the upward outlier is not yet a trend reversal; special factors were responsible for the result.
VDMA regularly generates data sheets with important indicators for its members. Raw data from various sources are processed for these. The latest data are provdided in our statistics database.
Weak global trade and a lack of investment will result in an 8% drop in mechanical engineering production in 2024. A trend reversal will probably not set in until 2025.
For the first time in months, orders only fell in single digits in July. However, this does not yet mean a turnaround; there is a lack of impetus for new investments worldwide.
The VDMA statistics database offers all VDMA member companies fast and convenient access to economic information on all aspects of mechanical engineering.
There are no signs of a turnaround in incoming orders. Orders fell significantly in June and also with a view to the first half of 2024. Germany and the euro countries in particular are weakening.
The mood in the mechanical engineering sector has deteriorated, even with a view to the year as a whole. According to the VDMA economic survey, investments will not increase again until 2025.
In May, orders in the mechanical engineering sector were 27% below the previous year's figure in real terms. A large part of the decline can be attributed to a base effect, but the result also reflects a continuing weakness in investment.
After one and a half years of continuous declines, orders in mechanical and plant engineering from Germany grew again for the first time in April. Compared to the previous year, there was an increase of 10 percent in real terms.
In the last two years, the bottlenecks on the labor market for engineers have become much more acute. Never before has the mechanical engineering sector been looking for so many employees, and never before have there been so many vacancies for engineers.
The global mechanical and plant engineering industry reached a new record high in 2021. In euro terms, around 15% more machines were sold than in the previous year. China cracked the 1 trillion euro mark.
Stay successful in a volatile market: VDMA offers an interactive report on European business climate indicators. Follow the developments of your most important European target markets and customer industries at a glance and make informed decisions based on current data.
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In 2022, machinery and equipment sold worldwide was worth almost 3.4 trillion euros. In euro terms, this is around 12 percent more than a year earlier. In the TOP 10 country ranking, there were changes from seventh place onwards.
Mechanical engineering companies from Germany have to hold their own in an increasingly difficult economic environment. The year 2019 was marked by a weak global economy, increasingly harsh threats and sanctions in the global trade disputes, as well as a far-reaching structural change in the automotive industry.
As part of the ifo Business Survey, around 10,000 companies - including over 400 mechanical engineering firms - from Germany report their assessments of the current business situation, the outlook and much more important information to the economic research institute every month. Not a reporter yet? Then it is high time!
The brochure "Mechanical engineering - figures and charts 2022" provides a comprehensive overview of all the important statistics relating to mechanical engineering.
The Economy and Statistics Department in the VDMA collects industry relevant data and information that is not available from other sources in all its complexity. The information available includes:
The ninth Corona Flash Survey on the economic impact of the Corona pandemic ran from 20 to 22 January 2021, with 575 mechanical and plant engineering companies taking part.
VDMA members in China, Russia, Brazil, and India expect double-digit sales growth for 2021. Capacity utilization in China reaches all-time high in spring 2021.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 3% in March 2025, resulting in an overall decline of 8% in the first quarter of 2025. (see table 1 and chart).
The textile machinery industry continues to face a challenging market environment. Global demand remains subdued and almost all sales markets are affected by a reluctance to invest.
In March, incoming orders in the food processing and packaging machinery sector rose by 15% in real terms compared to the weak previous year's figure. Domestic orders rose by 30% and orders from abroad by 12%.
Incoming orders and sales in the process engineering sector develop negatively in March Incoming orders: slightly down / turnover: very clearly down on the same month last year.
In April 2025, 329 new firefighting vehicles were registered in Germany.
On behalf of the VDMA Germany Trade and Invest (gtai) publishes reports on the construction industry of selected markets.
The first quarter of 2025 resulted in an overall increase in orders of 4% - the first positive quarterly balance of orders in three years. March also closed with a pleasing increase in orders of 4%.
Buoyant foreign orders - weak domestic demand: In March 2025, incoming orders showed two very different faces. The bottom line was a considerable increase of 30 percent.
Buoyant foreign orders - weak domestic demand: In March 2025, incoming orders showed two very different faces. The bottom line was a considerable increase of 30 percent.
In March 2025, incoming orders in the mechanical and plant engineering sector in North Rhine-Westphalia were 22% down on the previous year.
In March 2025, incoming orders in the Bavarian mechanical and plant engineering sector recorded an increase of 36% in real terms compared to the previous year.
Download the key figures (in German) here.
Download the key figures (in German) here.
The VDMA reports a decline in production in the food processing and packaging machinery sector of just under 2% to EUR 16.1 billion, while exports grew by 6% to EUR 10.6 billion.
Here you can download our digital press kit and the press kit of our cooperation partner, the Fraunhofer IVV.
Information on the development of incoming orders for manufacturers of compressors, compressed air and vacuum technology can be found here.
Information on the development of incoming orders for liquid pumps can be found here.
After the poor start to the year for foreign orders in mechanical engineering in Hesse in January (-15.8%), orders rose by 6.6% in February 2025. This represents a decline of 6.1 percent up to February.
Sales up, incoming orders not picking up.
Start of successful association networking. Despite difficult circumstances, bauma 2025 attracts its first visitors from Ukraine - in search of strong German partners in mechanical engineering.
After three consecutive years of growth, Saxony's mechanical engineering companies lost momentum in 2024. Turnover and employment figures are pointing downwards. The association expects a mixed result for 2025.
Incoming orders from abroad for the mechanical engineering sector in Rhineland-Palatinate fell by 0.5% in February 2025, following a double-digit increase two months earlier. Growth of 5.9% therefore remains until February.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 15.6% in January 2025, resulting in a total decline of 10.3% by February 2025 (see table 1 and chart).
The global food and beverage industry is one of the most dynamic growth sectors. Plastic dominates sales of retail packaging for food and beverages.
Global demand for packaged food, beverages, liquid food, pharmaceutical products and other non-food products will continue to rise in the coming years. The packaging machinery industry is benefiting from these developments.
Spain increased its exports of meat processing machinery by 3.1% in 2024. Companies exported machines worth 77 million euros.
We provide a download from Euler Hermes on the new possibilities of Hermes Cover. The file contains important details on company-related support.
Italy increased its exports of meat processing machinery by 3.8% in 2024. Companies achieved a record level of 182 million euros in foreign trade.
For several years now, we have been producing monthly data sheets on various sectors, categories and countries based on data from Euromonitor International. We publish the latest editions via the monthly newsletter NuV-Telegramm and make them available for download here with immediate effect. If you are not yet familiar with the data, we will briefly explain what is available to you here.
As an important service, VDMA Armaturen offers member companies regular updates on key industry facts relating to the building and industrial valves industry.
In March 2025, 282 new fire fighting vehicles were registered in Germany.
In February, incoming orders in the food processing and packaging machinery sector fell by 11% in real terms compared to the previous year. Domestic orders rose by 3%, while orders from abroad fell by 13%.
Monthly tracking of the market development of valve-relevant raw materials with a focus on non-ferrous metals
After a good previous month, business for German building fittings manufacturers remained on an expansion course in March. Sales climbed again both in Germany and abroad.
After a strong start to the year, industrial valves manufacturers' sales fell slightly in March as a result of declining foreign demand. Domestic sales, on the other hand, increased slightly.
Monthly tracking of the market development of raw materials relevant to valves with a focus on steel and cast iron.
In February 2025, incoming orders in the mechanical and plant engineering sector in North Rhine-Westphalia were 16% higher in real terms than in February 2024.
India's Interim Union Budget for 2024 projects a reduction in the revised fiscal deficit and a decline in inflation. These key economic indicators signal a promising future for the Indian economy, even amidst global economic uncertainties.
Baden-Württemberg's mechanical and plant engineering sector recorded a 5% increase in orders in real terms in February 2025 compared to the same month last year.
After a weak start to the year, patience is still required: the eastern German mechanical and plant engineering sector once again saw a drop in orders in February. Only customers from the eurozone invested generously.
In February 2025, incoming orders in the Bavarian mechanical and plant engineering sector recorded a year-on-year increase of 7% in real terms
The weakness in orders in Baden-Württemberg's mechanical engineering sector continues into the new year.
For the second month in a row, incoming orders from abroad for the mechanical engineering sector in Rhineland-Palatinate showed double-digit growth, following four months of double-digit declines.
The economic situation for the mining industry as a whole remains stable at a good level.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 23.8% in December, resulting in an overall decline of 12.2% for 2024 (see table 1 and chart).
The future prospects of the supplier industry for the meat and protein sector are positive, as the global food industry is developing dynamically. Germany is on its way to becoming the leading market for meat substitute products.
Thuringia's mechanical and plant engineering sector continued the previous year's very good sales result in 2024 despite the difficult conditions. The industry fell just short of the 4 billion mark.
On a monthly basis, our economic update gives a brief overview of the ecomomic situation of the construction equipment industry, e.g. order income, turnover, business climate and trade figures.
Information on production volume, employment development and foreign trade data, as of March 2025
No recovery at the start of the year - order intake continues to decline, sales develop positively.
Important questions on this topic
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How is the economic situation of the German machinery and equipment manufacturing industry developing?
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How is the international economic situation developing with regard to machinery and equipment manufacturing?
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How is the economic situation developing in the specialist branches of the German machinery and equipment manufacturing industry?
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