Capital Office - vdma.org

The federal government's planned immediate tax investment program sends important signals to the economy. The improvement in the research allowance in particular is good news.

Non-wage labor costs must be significantly reduced, only then can more employment be expected. this requires a real structural reform in the social security branches.

SMEs suffer particularly from the high bureaucratic burden. A recent study shows that the costs of regulations can even exceed the ROI. Information obligations and occupational health and safety requirements are particularly burdensome.

Federal Chancellor Friedrich Merz is sending out important industrial policy signals: reducing bureaucracy, tax incentives for investments and easier company start-ups. Now implementation must begin quickly.

Companies in Germany urgently need relief, also in terms of labor market regulations. Switching to a maximum weekly working time would be an important step towards more flexibility.

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%.

Friedrich Merz becomes Federal Chancellor at a particularly challenging time economically and socially. In the first 100 days, the course must be set for growth and competitiveness.

Industrial security is increasingly important in mechanical engineering as networked systems face growing attacks. The VDMA calls for EU-wide standards and SME support to meet security needs.

The future of pension funding is the biggest gap in the coalition agreement between the CDU/CSU and SPD. Unpopular measures are also needed to make pensions fit for the future.

The VDMA reviews the coalition agreement with a focus on key issues such as energy, climate, digitalization, education, tax and labor market policy. The executive summary highlights opportunities, gaps, and necessary adjustments.

At the general meeting of the VDMA Air Handling Technology Association, the association's board was newly elected. A central task for the coming years will be the fight against the flood of bureaucracy.

The future governing parties have negotiated a coalition agreement very quickly. It contains some good ideas for reducing unnecessary bureaucracy. However, the tax relief for companies comes too late.

Europe and its close relations with host country Canada shaped the opening of Hannover Messe 2025. VDMA President Bertram Kawlath emphasized the strengths of both partners.

The labor market is sending a clear signal: structural reforms are needed now instead of further social benefits, even if they may be unpopular.

Bureaucratic obligations place a considerable burden on small companies in the industrial SME sector. A new IMPULS study shows that the total burden of regulation for them is higher than the gross return on sales.

The planned coalition agreement between the CDU/CSU and SPD must make Germany competitive again. To achieve this, significant reforms must also be made to taxes and social security contributions.

To ensure the competitiveness of the mechanical and plant engineering industry, the VDMA is calling for reliable economic framework conditions. A strong industry means a strong economy.

There are major growth opportunities for the mechanical and plant engineering sector in climate protection technologies. To remain competitive, reliable framework conditions for investments and technology-open implementation are essential.

The German parliament has cleared the way for investment in infrastructure and defense capabilities. The new federal government must also introduce far-reaching structural reforms to strengthen the business location.

The future German government is facing decisive decisions. Clear industrial policy impulses are necessary to ensure growth and innovation. A guest article by VDMA President Bertram Kawlath for CEO.Table.

IG Metall wants to secure industrial jobs by giving preference to companies bound by collective agreements. This is the wrong approach.

The mechanical and plant engineering sector is investing billions in research and development - and is thus consistently focusing on innovation and new technologies.

Germany must take responsibility for defense capability and security and invest heavily in defense and infrastructure. Time-limited and earmarked special funds are better than softening the debt brake.

Germany's innovative strength as a business location must be strengthened now. An alliance of leading business associations and the Fraunhofer-Gesellschaft jointly present ten key demands to politicians.

Building automation is the key to climate neutrality. Smart systems optimize heating, cooling, lighting, reduce energy consumption, lower CO2 emissions, and enhance comfort and cost-efficiency – a win for both the environment and people.

Germany and Europe need stability and medium-sized industrial companies need attractive framework conditions. The tasks for the new federal government are thus clearly outlined.

The VDMA has addressed extensive demands to politicians. What do the parties think? Our overview shows the extent to which the mechanical and plant engineering industry is taken into account in the programs for the federal election on February 23, 2025.

Employment in the mechanical and plant engineering sector is also expected to fall slightly this year. This makes it all the more important to reduce labor costs now.

Less bureaucracy, a maximum tax rate of 25% and an efficient infrastructure are essential to ensure competitiveness. Germany will only remain a strong industrial location through bold reforms.

The German parliamentary election campaign is all about taking clear positions and making demands. VDMA Vice President Verena Thies explains where the industrial SME sector is struggling.

The mechanical and plant engineering sector is at the forefront of driving the sustainable transformation. To remain competitive, companies must be relieved of red tape, and ESG requirements must be implemented in a practical manner.

The high pace of innovation in mechanical and plant engineering requires more industry orientation in funding, strengthening of collaborative research, transfer platforms, and the expansion of research funding for future-proof jobs.

The VDMA calls for a labor market policy that secures skilled workers, recognizes performance, offers flexibility, and thereby stabilizes our social systems.

The VDMA calls for lower tax burdens, including the abolition of the solidarity surcharge and a corporate tax rate of a maximum of 25 percent.

The expansion of digital, energy, and transport infrastructure is crucial for maintaining competitiveness. The VDMA calls for better coordination between the federal and state governments to accelerate this process.

The transformation to climate neutrality presents a significant competitive opportunity for Germany and Europe. To fully capitalize on this potential, emissions trading and climate protection technologies must be designed effectively.

The mechanical engineering sector is calling for a reform of export financing to strengthen competitiveness and promote a level playing field.

The USA is an important market for the German mechanical engineering industry. Despite protectionist tendencies, the dynamic remains positive; with the potential of headwinds. The VDMA calls for close EU-US relations and rejects tariffs.

Both the CDU/CSU and the SPD want to pay more attention to industrial SMEs. It is high time for this - but it must not end in new burdens for companies.

Competitiveness, growth and a long-term supply of labor and skilled workers require adaptability, a flexible labor market and a future-proof social security system.

Salaries in the mechanical engineering sector are already at a very high level. The pilot wage agreement in the metal and electrical industry will therefore push many companies to their limits.

The German government wants to create incentives to work longer. However, the necessary major reforms are lacking. A new report by the IMPULS Foundation points the way forward.

The end of the traffic light coalition threatens to place a further heavy burden on medium-sized industrial companies. The mechanical engineering industry expects a new government to provide stability and quickly adopt reforms to boost investment.

Saxony and Thuringia need stable state governments. Long stalemates in the negotiations will damage industry even more. Majorities are needed for good location policy projects.

Buildings make a significant contribution to energy consumption and CO₂ emissions. Energy-efficient buildings can drastically reduce these emissions. Outdated heating systems and inefficient technology lead to a considerable waste of energy.

Excessive bureaucracy is one of the most annoying issues for SMEs. A planned small-scale reduction in regulation is just a drop in the ocean.

Tax money for the scrappage scheme is not being put to good use. It would be better to use it at the beginning of the value chain in production research. This would benefit jobs and technologies.

Good salaries are paid in mechanical engineering - even in companies without collective bargaining agreements. A collective bargaining law would only be another unnecessary burden.

In view of the shortage of skilled workers, incentives to work longer are very welcome in the mechanical engineering sector. However, the planned "pension deferral bonus" is far too complex.

The ramp-up of renewable energies is sometimes a challenge for stability. Pumped storage can provide a flexible remedy here and thus ensure the stability of the grids and security of supply.