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.
Production fell by 3.2 percent in the first quarter of 2025 compared to the previous year.
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.
Even though incoming orders increased slightly in the first quarter of the year, forecasts for the mechanical engineering sectors remain cautious. The uncertainty is too great - especially with regard to the USA's customs policy.
The VDMA Business Survey Q1/2025 ran from March 18 to 28, 2025 and received almost 1240 responses from 940 companies. The mood has brightened slightly. This is a snapshot in view of the latest tariff announcements by the USA.
Incoming orders in the mechanical engineering sector fell by 6% in real terms in April compared to the previous year. An expected setback, given the uncertainty caused by US tariff policy.
In many countries, machine production developed better than expected in the first few months of the year.
The global business situation in the mechanical engineering sector remains mixed. While India and Brazil are impressing with good figures, China is struggling with structural challenges. The USA is characterized by the latest tariff policy.
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.
Global machinery turnover is expected to grow by 1% in real terms in 2025 compared with the previous year, with significant differences in regional dynamics.
How well do you know the VDMA statistics database? And how often do you use it? Join us on a half-hour tour and get to know our wide range of data.
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.
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.
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.
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 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.
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
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.
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.
Research exclusively for participants in our monthly survey
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 results for incoming orders in the mechanical engineering sector in Hesse continue to fluctuate greatly. In April, they rose by 7.7% after falling by 6% in March.
The working group deals intensively with the topics of market observation and statistics for pneumatics. The working group meets twice a year and is chaired by Heiko Kurtz, Bürkert GmbH & Co KG, Ingelfingen.
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.
Incoming orders from abroad for mechanical engineering in Rhineland-Palatinate stagnated in April 2025, after falling in February and March but rising by double digits in January.
Download the key figures (in German) here.
Download the key figures (in German) here.
An overview of all offers of the trade association for market observation, market information and user industries.
Domestic orders for Saarland-based mechanical engineering companies have been falling since January 2024 and declined by a further 0.7 percent in April 2025, resulting in an overall decline of 11.2 percent for the first four months of 2025.
April brings an increase in orders and a rise in sales thanks to international business.
With a monthly update, which is exclusively available for download to VDMA member companies, we inform you about the development of price indices for process engineering goods.
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.
The trade association offers its members a wide range of market information. No other source provides such meaningful and up-to-date data for fluid technology.
We produce monthly data sheets on various sectors, categories and countries based on data from Euromonitor International. We publish these via the NuV-Telegram newsletter and make them available for download here.
Europe's construction industry is recovering - thanks to stable prices, better financing and EU funding. Residential construction will be the most important driver in future, with significant growth. In Germany, however, this will not become a reality until 2027 at the earliest.
The member companies of the VDMA's General Air Technology Association report a stable situation without any significant impetus. At the same time, the economic situation is characterized by a high degree of uncertainty.
In May 2025, 257 new firefighting vehicles were registered in Germany.
As an important service, VDMA Armaturen offers member companies regular updates on key industry facts relating to the building and industrial valves industry.
Monthly tracking of the market development of valve-relevant raw materials with a focus on non-ferrous metals
Incoming orders in the food processing and packaging machinery sector were down 10% in real terms in April compared to the same month last year.
After two good previous months, business for German building fittings manufacturers remained on an expansion course in April. Sales climbed again in Germany and abroad.
After a weak previous month, industrial valves manufacturers' sales fell again in April. This time, however, the cause was domestic business.
Monthly tracking of the market development of raw materials relevant to valves with a focus on steel and cast iron.
The Japan Construction Report is provided by the VDMA team in Tokyo. It contains news of the construction, glass and ceramics industry of Japan and is published monthly in German. The most recent report can be downloaded from this website.
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.
The publication provides an overview of CECE's activities. It shows the topics with which the CECE is involved at European and international level.
In April 2025, the positive trend in incoming orders in Baden-Württemberg's mechanical and plant engineering sector continued with an increase of 6 percent in real terms compared to the same month last year.
In April 2025, incoming orders in North Rhine-Westphalia's mechanical and plant engineering sector were 15% below the previous year's result.
In April 2025, incoming orders presented an unusual picture: extremely weak foreign orders contrasted with strong domestic demand. Overall, orders were clearly in the red.
In April 2025, incoming orders in the Bavarian mechanical and plant engineering sector fell by 9% in real terms compared to the previous year.
Current forecasts, key figures and background information on agricultural framework conditions, business and market development - worldwide, in Europe and in Germany.
Saudi Arabia is currently 20-30 percent self-sufficient in food. The country is only self-sufficient in some vegetables.
Incoming orders in Hesse continue to fluctuate greatly.
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 Oil Hydraulics Market Investigation Working Group meets twice a year. The participants find out about the economic situation in mechanical engineering and fluid power in particular and discuss current trends in mechanical engineering.
Incoming orders from abroad for the mechanical engineering sector in Rhineland-Palatinate fell by 4.7% in March 2025, following a double-digit increase in December and January.
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.
Mechanical engineering in Baden-Württemberg is the leading center of German mechanical and plant engineering.
Sentiment among companies in the mechanical and plant engineering sector in Baden-Württemberg remains low
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%.
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.
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.
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.
Important questions on this topic
-
How is the economic situation of the German machinery and equipment manufacturing industry developing?
-
How is the international economic situation developing with regard to machinery and equipment manufacturing?
-
How is the economic situation developing in the specialist branches of the German machinery and equipment manufacturing industry?
Events
Join us for an event where we present exclusively the latest trends and statistics on the Chinese market and Survey and Statistics Database. Dive into comprehensive analyses and benefit from valuable data to support your decision-making and strategy development.
Current figures and market assessments: what opportunities are opening up for mechanical and plant engineering in Brazil?
Results of the latest VDMA Business Survey Mechanical Engineering Austria with Florian Scholl. Exclusively for managing directors from the Austrian mechanical engineering industry.
Further information coming soon
.jpg/7fe15367-685e-9ffd-bfaa-20e4af6d3034)
Exclusively for VDMA members
Register now and read more
Don't have an account?
If your company is already a VDMA member, you can register easily.
Do you not know whether your company is already a member? Take a look at our member list and find out.
Are you interested in becoming a VDMA member?
.jpg/0f327b9d-dd79-11a6-3427-3fc5c4004490)
Your contact
