Markets & Economy - vdma.org

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.

On May 20, 2025, the EU published its 17th package of sanctions against Russia. The measures (5 amending regulations) all come into force on May 21, 2025. Some of the tightened sanctions are also relevant for the mechanical and plant engineering industry.

Foreign exchange market was deregulated in March 2024. But expectations that exports would pick up afterwards were not fulfilled. VDMA members in Egypt nevertheless report good business.

Saudi Arabia in transition offers both challenges and opportunities. Local presence remains crucial, and not just because of increasing Chinese competition.

The EU-Commission launches public consultations on possible countermeasures in response to Trump's introduction of “reciprocal” tariffs and tariffs on cars and car parts from the EU.

The new Trump tariffs are not only raising costs for the machinery sector, but creating confusion and uncertainty among manufacturers that export to the United States.

The foreign trade department informs you about the latest developments in exports and supports you in accessing difficult markets. We support your international activities with offices worldwide and practical information.

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.

The VDMA is filling two key positions: Dr. Johannes Gernandt will become the association's Chief Economist, replacing Dr. Ralph Wiechers. Oliver Richtberg becomes the new Head of Foreign Trade, succeeding Ulrich Ackermann.

In light of Trump’s tariffs, analysts highlight ASEAN’s risks from trade tensions but remain optimistic about the region's resilience. Singapore’s semiconductor industry stays cautious, exporters diversify suppliers and customers amid uncertainties.

From 7-11th April Oliver Wack from VDMA Foreign Trade visited Japan. The main topic was to prepare VDMA President's Bertram Kawlath's visit to Japan in September.

Get an overview of the most important macroeconomic data for all countries in the world - including forecasts from the International Monetary Fund (IMF) and information on the business environment.

The webinar on May 20, 10:00 a.m. to 12:00 p.m., is the first in a series of events organized by the Agency for Business and Economic Development (AWE), VDMA e.V. and Germany Trade & Invest (GTAI).

The Shanghai-Germany Manufacturing Industry Exchange Dialogue was held on April 1, 2025, at Hannover Messe, co-organized by the Shanghai Municipal Government and VDMA.

"Navigate the Future of the 'Beverage' Industry" - drinktec Day & Press Conference is successfully held

Intercompany license agreements between the parent company in Germany/Europe and the subsidiary in China are of considerable importance in practice.

One third of national patent applications in Germany can be attributed to the technology field of mechanical and plant engineering. In hardly any other country is this proportion as high as in Germany.

New tariffs for European goods in trade with the USA.

VDMA has met with the EU Member States, the EU-Commission and the EU-Parliament to campaign for the eDeclaration. If adopted, this would be an important first step towards reducing bureaucracy.

We provide a download from Euler Hermes on the new possibilities of Hermes Cover. The file contains important details on company-related support.

The Hermes Annual Report for Export Credit Guarantees 2024 has been published. The figures show how relevant the protection of export receivables against crises is.

The EU is right to keep a cool head in response to US President Donald Trump's punitive tariffs. An open trade war would serve no one. However, the EU should use the momentum for new free trade agreements.

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.

The U.S. Bureau of Labor Statistics provides comprehensive employment and wage statistics. In our interactive report, we clearly present data by industry, occupational group and location.

The USA is much more than just a major sales market for industry in Europe. The change in trade policy under Donald Trump is hitting companies all the harder. Europe must now show unity and strength - in every respect.

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.

The blanket punitive tariffs announced by Donald Trump will harm producers and consumers in both regions - and will exacerbate rather than resolve trade conflicts.

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.

The number of international students in Germany is growing steadily. This is good news for mechanical engineering.

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.

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.

The tougher the international competition, the greater the demand for payment terms from the manufacturer. Currently, the disruptive measures taken by many national governments are increasing the need for export cover.

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.

The US government's tariff policy could result in a 4% drop in production by Japanese car manufacturers.

How are exports to Africa and the Middle East developing? Which are the largest local markets, which product groups are most in demand and what are the most important supplier countries? In our theme publication you will find facts, figures and data on foreign trade with Africa and the Middle East from the perspective of the mechanical and plant engineering sector.

The mechanical engineering industry in Brazil will benefit from the simplification of certificates of origin through self-certification in Mercosur.

China’s Two Sessions 2025 spotlight a bold industrial shift—AI, 6G, digitalization, and smart manufacturing are set to reshape the machinery sector in the coming years.

Tariffs of 25 percent on the import of cars and car parts have been announced. They are due to come into force starting May 3.

Mitsubishi Corporation plans to build data center on the site of the former JFE blast furnace with an investment volume of JPY 150 billion (EUR 937 million).

Singapore’s Budget 2025 presents significant opportunities for businesses to reduce costs, invest in workforce development, and adopt digital innovations.

Malaysia and Singapore launched the Johor-Singapore Special Economic Zone (JS-SEZ) in January 2025. The new economic initiative aims to drive significant business growth with as many as 50 projects and create 20,000 skilled jobs.

In February, the ASEAN manufacturing purchasing managers' index (PMI) rose to 51.5, the highest in seven months, from 50.4 in January. This marks the highest reading since July 2023.

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 VDMA is intensifying its activities in sub-Saharan Africa and is looking forward to new support in the team of the foreign trade department

New orders for machinery in Japan fell by 3.5% in January compared to the previous month, while the order backlog reached a record high due to a shortage of labor and transportation capacity.

On March 12, the USA imposed tariffs of 25 percent on all steel and aluminum products, including some steel and aluminum derivatives. This affects the mechanical and plant engineering sector, especially the spare parts business.

Despite a slight decline in machinery exports to Kazakhstan in 2024, the German mechanical engineering industry remains confident

In 2024, machinery exports from Europe to the Southeast Asian region will still not be able to match the levels of the years before coronavirus and will even record further losses.

Benefit from the comprehensive expertise of the VDMA at the Hannover Messe! Take the opportunity for personal expert discussions with VDMA employees from various fields.

Europe's defense industry needs efficient value chains for components and production technologies. The European mechanical and plant engineering industry will play a key role here.